Consumer battery price hikes in China
News abounds of significant battery prices increases for consumer battery suppliers in China. Ganfeng Lithium (HKG:1772) subsidiary Xinyu Ganfeng Electronics, which makes small polymer lithium batteries for wearables, cited a “huge increase” in raw material prices in a letter to its customers. It cited lithium carbonate, graphite and anode materials as key reasons for the price increases. Clients of XGE include manufacturers like Xiaomi Corp and Oppo. The news came as German consumer battery manufacturer Varta (ETR:VAR1) withdrew guidance for FY22 due to rising raw material and energy prices. Varta is also highly exposed to the previously lucrative wearables market.