Mei Ri Jing Ji Xin Wen·2025-12-11 10:19Core Viewpoint - The recent price increase of lithium iron phosphate (LFP) materials is driven by multiple factors, including rising upstream raw material costs and the ongoing losses in the industry, prompting several LFP manufacturers to negotiate price hikes with downstream battery manufacturers [1][5]. Group 1: Price Increase Dynamics - Multiple LFP companies have proposed price increases to downstream battery manufacturers, with one company planning to raise processing fees by 3,000 yuan per ton starting January 1, 2026 [3]. - The cost structure of LFP batteries shows that cathode materials account for over 40% of the total cost, indicating that price hikes from LFP manufacturers could significantly impact downstream battery and new energy vehicle sectors [3][5]. - Some battery manufacturers, such as Funeng Technology, have acknowledged the trend of rising battery prices due to increased raw material costs and expanding market demand [3][5]. Group 2: Market Conditions and Trends - The price of LFP materials has seen a significant decline from 173,000 yuan per ton at the end of 2022 to 34,000 yuan per ton in August 2025, a drop of 80.2%, leading to over 36 months of continuous losses in the industry [5]. - As of December 10, 2023, the average market price for LFP batteries has stabilized at 41,000 yuan per ton for power-type, 37,800 yuan per ton for energy storage-type, and 25,400 yuan per ton for repair-type [5]. - The domestic power battery installation volume reached 578.0 GWh from January to October 2023, with LFP batteries accounting for 470.2 GWh, representing 81.3% of the total and a year-on-year growth of 59.7% [6]. Group 3: Industry Sentiment and Future Outlook - The rapid growth of the downstream new energy vehicle and energy storage markets has provided LFP manufacturers with confidence to pursue collective price increases [7]. - Many leading LFP companies have their orders booked through the first half of the next year, operating at near full capacity [7]. - The upcoming reduction in vehicle purchase tax for new energy vehicles is intensifying competition among car manufacturers for battery supply, further complicating the supply chain dynamics [9].