Full-Scale Price Hike Across the Lithium Battery Industry: Power Battery Shortage Eases, While Energy Storage Battery Scarcity Persists

IT Home reported on December 31 that according to a report by Red Star News today, the shortage of power batteries for automakers has eased, but energy storage batteries remain scarce, leading to a full-scale price increase across the lithium battery industry.

The report stated that due to tight supply from first and second-tier battery manufacturers, some automakers dispatched personnel to battery companies to "scramble for batteries" between September and November 2025. By the end of 2025, the supply crunch of power batteries had alleviated, yet the shortage of energy storage batteries is expected to persist.

It was also mentioned that affected by insufficient battery supply, the delivery of multiple new energy vehicle models has been slow, and their production ramp-up speed has been difficult to increase. Examples include the Li Auto i6, the all-new NIO ES8, and the 2026 AITO M7. A relevant person in charge of Li Auto told the media, "The delivery of the i6 has indeed been delayed due to battery supply issues."

According to a report by National Business Daily, since early December, several lithium iron phosphate (LFP) cathode material producers have launched a price hike wave, with an increase of 2,000-3,000 yuan per ton. This round of price increases is driven by strong demand for energy storage and rising raw material costs such as lithium carbonate. Industry insiders predict that the price uptrend will last until the fourth quarter of next year.

Zhou Bo, Secretary-General of the Lithium Iron Phosphate Material Branch of the China Chemical and Physical Power Industry Association, stated that the supply-demand dynamics in the LFP market have reversed. It is estimated that the top 20 enterprises in terms of capacity utilization rate are basically operating at full capacity, and many previously idle production capacities in the industry have also started to undertake OEM orders.

IT Home noted that on December 9, Dega Energy fired the "first shot" of lithium battery price increases. The company announced that to ensure the continuous and stable delivery of products and maintain quality, after internal research and decision-making, the selling price of battery products will be increased by 15% based on the current catalog prices starting from December 16, 2025.

Earlier this month, Farasis Energy also stated on the investor interaction platform that the prices of some raw materials have risen recently, coupled with the continuous expansion of market demand. The price increase of lithium batteries has become an industry trend.