Soaring up to 261% of cost of raw materials for electric vehicle batteries... Concerns about deterioration in finished vehicle profits - Etnews

Significant rise in prices: Lithium 261%, Manganese 81%, Cobalt 70%
Signed a 'metal price linkage contract' between material and battery companies
Concerns about placing burden to auto companies, wh

Following urea and magnesium, the price of key raw materials for batteries used mainly by Korean battery makers increased all at once compared to the beginning of the year. Lithium rose 261% from January, and cobalt, the most expensive of the core materials, jumped from $33,000 per ton to $56,240.

Currently, material-battery-finished automakers have a 'metal price linkage contract' that raises the purchase cost when the price rises. The impact on the materials and battery industry is minimal due to this contract. Ultimately, the burden from the price increase is highly likely to be passed on to consumers and the finished auto industry, which is at the end of the value chain. The auto industry is not able to withstand profitability, and the possibility of raising vehicle prices is expected.

According to the Korea Mineral Resource Information Service (KOMIS) on the 8th, the transaction price of four key raw materials for lithium-ion batteries jumped all at once compared to January of this year. Manganese rose 81% from $1,305 (KRW 1.55 million) per ton in January to $2,365 (KRW 2.8 million) in November, while cobalt rose 70% from $33,000 to $56,240 and nickel rose 13% from $17,344 to $19,590. In particular, in the case of lithium, the price per kg jumped 261%, jumping from RMB 48.5...

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