Many Listed Companies Remain Committed to Expansions as They Bet on the Future, Despite Lithium Hexafluorophosphate Prices Approaching Cost

SHANGHAI, July 11 (SMM) – Even though the spot prices of lithium hexafluorophosphate are close to the costs of second- and third-tier lithium hexafluorophosphate manufacturers, major manufacturers are still sticking to their original production expansion plans. 

After nearly 26 weeks of price decline, lithium hexafluorophosphate prices rallied in early July, stabilising at 250,000 yuan/mt. The price rebound was mainly due to the less-than-expected release of new production capacity and the recovery of industry demand. According to feedback from industry insiders, due to the effective control of the pandemic, the demand for batteries and cars recovered significantly, which in turn boosted the demand for lithium hexafluorophosphate.

However, due to the capacity expansion in the second half of the year, the profit margins may be affected.