Chinese LFP Battery Material Suppliers Plan Price Increases in 2026 Amid Rising Costs

Leading Chinese suppliers of lithium iron phosphate (LFP) battery materials are set to raise prices in 2026 due to prolonged losses and increasing upstream raw material costs. A major manufacturer announced uniform processing fee increases at a recent industry conference.

The sector has experienced over 36 months of losses, with six listed companies reporting an average debt-to-asset ratio of 68%. Despite these challenges, demand for energy storage has surged, pushing firms to operate above nameplate capacity.

Companies such as Wanrun New Energy Technology and Lopal Tech have reported significant losses, prompting the need for price adjustments. The rise in production costs, particularly for sulfur and sulfuric acid, further necessitates these increases. China's lithium-ion battery exports rose 27% to USD55.4 billion from January to September, while new energy vehicle penetration reached over 45% and energy storage installations increased by 60%.