BYD to reportedly increase EV battery prices by 20% from November

BYD to reportedly increase EV battery prices by 20% from November

Chinese manufacturer and battery supplier BYD Limited is reportedly preparing to increase the prices of its lithium battery cells by a minimum of 20 per cent from 1st of November this year.

According to local media reports, BYD (short for Build Your Dreams) is all set to hike the prices of the lithium battery cells due to increase in the price of raw material. Moreover, worldwide supply chains remain stifled, which prompted the Chinese manufacturer to hike the prices of battery cells to compensate for its increased cost of production.

The reported hike in prices would include the company’s new Lithium Iron Phosphate (LFP) Blade battery packs, which are in large demand. Earlier this year, American electric automobile giant Tesla Motors had also expressed its interest in purchasing LFP Blade battery packs for its world-renowned EVs.

Along with global supply setbacks in wake of global Covid-19 pandemic, BYD is increasing prices of its products to account for higher raw material costs. Citing an internal letter from the company outlining the planned price hikes, The Securities Times reported that lithium battery prices could be increased by at least 20 per cent. Starting 1st of November, all new orders will be placed by signing a new contract reflecting the new, increased price.

The internal letter cited by the media reports noted that market changes, especially production and supply chain restrictions, would lead to an increase of more than 200 per cent in the price of lithium battery cathode materials, while the price of electrolyte and anode materials would soar by as much as 150 per cent.

To adjust for the increased cost of raw materials, BYD will also take some other measures, including some cost-cutting measures.

Founded in 1995, BYD started business by producing various types of electronics, and gradually spread its feet into the sector of automobile by setting up a new venture in the form of BYD Auto in the year of 2003. Since its year of foundation, the company has evolved into one of the world’s largest manufacturers of plug-in electric cars. In addition, BYD produces battery cells for EVs. It mostly produces battery cells for its own EVs, but it has recently also started supplying battery cells to EVs produced by other brands, such as the all-electric Ford Mustang Mach-E.

Currently, BYD holds the second position in terms of battery supplies in China, just s spot below the Contemporary Amperex Technology Co. Limited (CATL).