Rising prices of upstream raw materials are testing the sensitivities of battery manufacturers, including BYD. On October 26, a "contact letter for the increase of battery price" signed as "Shenzhen BYD Lithium Battery Co., Ltd." circulated in the industry.
The price adjustment letter said that due to market changes, superimposed power production restrictions, lithium battery raw materials continue to rise compared with December last year, and the supply of negative materials continues to be tight, resulting in a substantial increase in comprehensive costs. According to the actual situation of the rise in the price of raw materials, it has been decided by the study that the unit price of battery products such as C08M will be raised by no less than 20%.
BYD said it would not comment on the above situation.
Combined with industrial, commercial and market information, Shenzhen BYD Lithium Battery Co., Ltd. is the predecessor of BYD's battery business segment Fudi Battery, and some of the existing battery business still belongs to the former.
"judging from the content of this contact letter, the cathode material LiCoO2 is a common application material for consumer batteries, so the increased prices of batteries may involve consumer electronics products." Wang Rongjin, partner of Jinbang Capital, believes that.
In addition, the C08M battery mentioned in the letter is a power battery, which is suitable for new energy vehicles such as electric forklifts, beach vehicles and environmentally friendly vehicles. However, it does not rule out the possibility of an increase in the price of BYD's entire range of battery products.
Although BYD has deliberately kept a low profile, it has become an indisputable fact that the rise in the price of upstream raw materials has led to a stupid "rise" in the battery industry as a whole.
"Raw materials have risen a lot, and we belong to the 'slow walking' strategy, which has floated a total of 20% since the beginning of this year." A person in charge of a power battery company told the Financial Associated Press. In addition, Guoxuan Hi-Tech has recently released a similar price adjustment negotiation letter.
According to estimates by relevant institutions, the increase in the cost of raw material prices transmitted to the end of the power battery is about 20% Mel 25%, while the rise in raw material prices in the first half of the year was mainly carried by battery factories. According to market news, the price of all products in the Ningde era, the leader of the industry, has not yet risen.
From the current point of view, the upstream cost of the industrial chain has not yet been transmitted to the downstream. In addition to Tesla's repeated price increases in the US market, revealing the pressure on the cost side, the domestic vehicle sales market has not shown a trend of price increase as a result.
"at present, the external supply of BYD batteries in the passenger car field is relatively small, so the price increase has little material impact on the passenger car market." Some industry analysts believe that.
Similar to this point of view, Cui Dongshu, secretary general of the bus Federation, made it clear that the increase in the price of power batteries will not be transmitted to the consumer side of the vehicle for the time being.
Affected by the chip, the current automobile industry chain has been very fragile. Wang Rongjin believes that the increase in the price of power batteries will not affect the production capacity of battery enterprises, nor will it repeat the mistake of chip shortage, affecting the production capacity of vehicle enterprises.
