SHANGHAI, Jul 28 (SMM) - As the increased acceptation of new energy vehicles (NEVs) across the globe, development of NEVs has become a consensus that creates great demand.

Supply of lithium hexafluorophosphate, a fundamental raw material for power battery, has also been challenged by vigorous downstream demand. According to an industry veteran, over 70% of lithium hexafluorophosphate supply in China has been secured by forward orders. More importantly, current production may not be able to fully fulfill the demand from forward order holders, let alone those who have not yet executed any agreements, thus leaving a great void across the supply side.

A good news is that production expansions among lithium hexafluorophosphate companies are under way; however, most of them will only begin in the second half of next year. Therefore, the expansion speed lags far behind demand growth, so is the volume. Also, the possible interruption of VC supply may also lead to higher demand of lithium hexafluorophosphate. While news came that VC expansion schedule and R&D of new formula that reduces VC content is already on the way.

For lithium hexafluorophosphate prices, it is expected to form a healthy and reasonable pricing scheme in the end to fulfill and fit into the market dynamics.