What Should We Do When The Price of Battery Material Rises?

Zenergy Solution

The new energy vehicle market continues to grow, forming important support for battery prices in terms of demand. Upstream raw material prices have risen and transmitted to battery manufacturers. As of mid-November, the price of battery-grade lithium carbonate was $19.50 per ton, up more than 230% compared to the beginning of the year. Yellow phosphorus and phosphoric acid, which produce batteries, have risen by as much as 280% in a year. Prices for nickel, cobalt, manganese, and other scarce precious metals are also rising, with demand outstripping supply.

The rising prices of battery materials have caused more capital changes. In the third quarter of this year, as many as 55 domestic battery materials expansion projects, mainly in iron phosphate, lithium carbonate expansion of the hottest. The number of companies entering the lithium materials industry has increased significantly, with more than 20 listed companies also entering the battery industry in the third quarter.

However, the cost of the upstream of the industry chain is not a large area to the downstream conduction. That is to say, the soaring prices of raw materials for power batteries have not yet affected the power battery recycling market.

Although there are still many problems to be solved in the recycling and secondary use of power batteries, promoting the sustainable development of the power battery reuse industry and circular economy model has become an industry consensus and is in a rapid development trend.

Overall, under the dual influence of battery cell price increase and global battery cell shortage, PV system and energy storage solutions are the key to the success or failure of power generation systems, determining power supply performance and return on investment. Currently, the industry is most optimistic about the three major energy storage technologies: lead-carbon batteries, liquid flow batteries, and lithium batteries. Energy storage, as an important technical support to improve the stability of renewable energy, has also ushered in a long development.

Since the beginning of the 21st century, the world's solar photovoltaic power generation industry has developed rapidly, and the market application scale has continued to expand. It plays an increasingly important role in the development of subsequent energy sources. The development and utilization of solar photovoltaic technology are also important measures for us to implement energy conservation, emission reduction, sustainable development, and improvement of the living environment in a resource-saving society.

Zenergy Tech Co., Ltd. is a team with 10-year-experience in the PV field and relevant power electronic equipment R&D ability. Over the years we have been devoted to the rational utilization of renewable energy such as Multi-source hybrid system design and photovoltaic (PV)  and implementation solutions. Based on a deep understanding of the micropower grid, our comprehensive solution is not limited to PV itself but from the perspective of the whole power supply system, to provide more reliable and efficient power solutions for the owners.

If you want to know more about new energy generation, please contact us, Zenergy Tech Co., Ltd will be happy to serve you!