Chinese Government Officials and Enterprises React Strongly to Sky-Rocketing Battery Material Prices

SHANGHAI, Mar 29 (SMM) - New energy car price hikes are sweeping the Chinese auto market, involving foreign brands, Sino-foreign brands, and Chinese brands, from electric car start-ups to traditional car companies.

The sharp rise in raw material prices is one of the main drivers behind the recent wave of price hikes.

On March 19, Li Xiang, CEO of LiAuto, one of China’s top three electric car start-ups, said on social media the reason why some brands that have not raised their prices is because they have failed to reach an agreement over the price increase and that they will generally increase their prices immediately after the agreement is reached.

The increase in battery costs in the second quarter went too far, said Li Xiang.

When will the price increase of battery raw materials stop?

How to ensure the supply of raw materials?

At the just-concluded 2022 China Electric Vehicle 100 Forum, people from some government departments and related companies have voiced their concerns and suggestions.

Xin Guobin, Vice Minister of Industry and Information Technology (MIIT): Push the price of key raw materials back to rationality

Wan Gang, Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference: The rise in the price of raw materials for power batteries deviates from supply and demand

Xiang Libin, Vice Minister of Science and Technology : Carry out technical research on cobalt-free power batteries

Wang Chuanfu, Chairman and President of BYD: China should focus on increasing domestic mining and imports of lithium carbonate

Gu Huinan, general manager of GAC Aian, hopes that the competent authorities will control the price of upstream raw materials of electric vehicles

Li Zhen, chairman of Guoxuan Hi-Tech: Lithium resource shortage is expected to end in 2025