As governments and industries around the world continue to increase their efforts to reduce carbon emissions, the development of new energy sources is extremely rapid, and electric vehicles and battery energy storage are the most direct means of reducing carbon emissions, and the natural outbreak is more intense.

　　Such demand has led to a rapid increase in the market demand for lithium batteries, and various types of batteries in the market are in short supply. At the same time, battery manufacturers have also launched an arms race. The demand for "military supplies" raw materials is extremely eager. At the same time, along with factors such as global monetary easing, this has directly and significantly pushed up the prices of cathode and anode raw materials, electrolytes and other materials.

　　SES Power has nearly 20 years of experience in the lithium battery industry, and has experienced many ups and downs in the raw materials of lithium batteries, but it has never been as crazy as this time: in just two months, the raw materials of lithium carbonate increased from 30,000 US dollars a ton, rose to 60,000 US dollars a ton. In January 2021, the price of lithium carbonate is about US$10,000 per ton, and the price in January 2022 has risen to US$60,000 per ton. With a six-fold increase in one year, we can hardly find a commodity that has risen more sharply than the price of lithium batteries. Although SES Power is a customized lithium battery service provider, we have many products in energy storage power stations, energy storage systems, energy storage lithium batteries, inverters, photovoltaic power generation and other industries, but we also have some general models, such as square The 12V100Ah, 12V200Ah, 24V100Ah, 24V200Ah, 36V100Ah, 48V50Ah, 48V100Ah, etc. lithium iron phosphate batteries with aluminum shells are low-temperature lithium batteries that can be used at -60 degrees and -40 degrees Celsius. We regret to inform our customers, the price of the product must be adjusted according to the condition of the raw material.

　　The price of lithium iron phosphate battery accounts for the highest proportion of cathode raw material lithium carbonate. Various battery manufacturers are facing limited supply from the supply side. If they hold minerals, the production capacity of lithium batteries will be guaranteed, which also highlights the advantages of the vertical supply chain that some manufacturers have deployed in advance.

　　Faced with the continuous rise of raw materials, since the second half of last year, various battery manufacturers have begun to raise prices. Compared with the beginning of last year, the price of battery cells has generally increased by about 30%, and the quotation cycle of manufacturers has been shortened, and the validity period of quotations is almost calculated by days. Moreover, due to the huge gap in demand on the demand side, the general supply cycle is prolonged.

　　Lithium batteries are the equipment with the highest proportion of investment in energy storage power stations, and the rise in battery prices will have a great impact on the development of the industry. Because in the energy storage industry, capacity cost and mileage cost are generally used to reflect the cost of unit energy in the whole life cycle. With the rise in the price of terminal lithium iron phosphate batteries, various costs have risen, and the revenue mechanism is still not perfect due to the fact that most of the current application scenarios are still not perfect.

　　For example, photovoltaic supporting energy storage projects still mainly rely on the revenue sharing cost of photovoltaic power plants. Due to the high cost of photovoltaic power plants, in some areas with limited light resources, this will greatly affect the investment enthusiasm of enterprises. Because no one wants to do business that is doomed to lose money.

　　The increase in the price of lithium iron phosphate batteries has also turned everyone's attention to the diversification of battery technology routes, such as sodium-ion batteries, all-vanadium, and iron-chromium flow batteries. The diversification of battery technology will spread the risk of battery technology and promote the progress of energy storage technology.

　　However, SES Power also noticed that due to the high price of raw materials, raw material producing countries have generally increased the mining of lithium resources. With the release of these new production capacity and the intensification of competition, the price of raw materials will definitely fall back to a reasonable level in the future. But we should also realize that these increases in production capacity will never be reflected in a day, and it will take half a year or even a year to finally be reflected in the end products.

　　At the same time, researchers are also working on batteries with better performance levels, with higher cycle times and efficiencies. For example, the battery cell cycle life of the demonstration project built by CATL in Jinjiang can reach 12,000 times. The use of new technologies will effectively reduce the cost of energy storage throughout the life cycle.

　　It can be said sincerely that in 2022, we must accept the reality that lithium battery prices will increase significantly, but many customers pay great attention to cost-effectiveness. Based on these two realities, SES Power takes advantage of the price advantage of echelon batteries to meet the needs of the price. The demands of discerning customers. At the same time, we also recommend that customers place an order and pay a deposit as soon as possible under predictable circumstances, so as to ensure that the lithium battery manufacturer cannot increase the price during the contract period.