CHANGSHA, May 21 (SMM)— The global new energy vehicle market is booming, and the growth rate will remain at around 25% in the next ten years, said SMM's Head of New Energy department Yettie Yi.

Yettie mentioned that the new energy industry has gradually entered the balance of supply and demand from extensive growth. The current industry focus is how to price and stabilise the industry chain. Stable sales and purchases can help companies produce and profit stably, and focus on business research and development.

Raw material prices have been rising since Q4 2020. Prices of lithium carbonate have risen by about 120%, the prices of electrolytes with negative and positive membrane have generally risen by 50-100%, and the costs of battery BOM have risen by about 30%.

Market prices are chaotic due to the lack of a unified pricing mechanism for batteries and downstream companies and a linkage mechanism with raw material prices. Most companies cannot avoid the risks from the fluctuations in raw material prices.

The growing battery recycling market also lacks uniform pricing. The business model of lithium battery recycling is changeable, with diversified types and metal content, so there is an urgent need for a reference quotation for battery scrap. The transaction costs increased for some companies due to the opaque market information and the nonstandard wide range of battery scrap and black mass.

SMM will release spot quotations for six mainstream battery cells, in order to help the market avoid transaction risks, reduce transaction costs, and provide spot prices that truly reflect the price linkage between the market's raw material end and the battery end. SMM will also provide objective and fair prices of battery scrap and black mass for the lithium battery recycling market.