SMM November 6 News:
This week, electrolyte market prices showed a significant upward trend, with average prices for ternary (for power use), LFP (for power use), and LMO electrolytes at 27,500 yuan/mt, 25,750 yuan/mt, and 20,250 yuan/mt, respectively. Cost side, rising prices of core raw materials for electrolytes were the main factor driving the recent increase in electrolyte market prices. Key materials such as the main salt LiPF6 and critical additives including VC and FEC faced tight supply due to continuously growing downstream demand, directly leading to substantial price rises; rising raw material prices, combined with enterprises' need to ensure order delivery, further boosted downstream purchasing sentiment, providing support for prices. Multiple raw materials rising significantly and simultaneously caused a notable increase in cost pressure for electrolyte enterprises, which gradually passed through to the battery cell side, ultimately driving the overall rise in recent electrolyte market prices. Demand side, downstream battery cell manufacturers still saw overall growth, directly pushing up overall electrolyte demand. Supply side, growing downstream demand led to a steady increase in the operating rates of electrolyte enterprises, but as core upstream raw material supply remained tight, enterprises' bargaining power strengthened, and electrolyte prices had already risen significantly; however, the price increases for some products had not yet fully covered the rise in raw material costs, and enterprises still faced certain profit pressures. Considering cost pressures and supply-demand conditions, electrolyte prices are expected to have further room to rise.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lü Yanlin 021-20707875
Zhou Zhicheng 021-51666711
Xu Mengqi 021-20707868
Hu Xuejie 021-20707858
