--- title: "Rising raw material prices put pressure on the battery industry, ushering in deep changes" type: "News" locale: "en" url: "https://longbridge.com/en/news/282116628.md" description: "Recently, the prices of core materials such as lithium carbonate have continued to rise, putting cost pressure on the power battery industry. Nevertheless, the industry is accelerating breakthroughs in technologies such as sodium-ion batteries and semi-solid batteries, while upgrading the recycling management system for used batteries. It is expected that global lithium demand will exceed 13 million tons by 2050, and fluctuations in lithium prices are prompting the industry to develop in a diversified and recyclable direction. Policies are also guiding the industry to shift from price competition to value competition" datetime: "2026-04-09T01:19:09.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282116628.md) - [en](https://longbridge.com/en/news/282116628.md) - [zh-HK](https://longbridge.com/zh-HK/news/282116628.md) --- # Rising raw material prices put pressure on the battery industry, ushering in deep changes Recently, the prices of core materials such as lithium carbonate have continued to rise, once again putting cost pressure on the power battery industry. However, under this pressure, the industry has not slowed down but has accelerated breakthroughs in diversified technology routes such as sodium-ion batteries and semi-solid batteries. At the same time, the recycling management system for used power batteries has been comprehensively upgraded. Industry insiders say that China's battery industry is accelerating towards a deep transformation period characterized by technological diversification, scenario customization, and a closed-loop lifecycle. Cost increases force the industry to break through Data shows that compared to the low levels in the second half of 2025, the current price of battery-grade lithium carbonate has already increased by more than 100%. In the long term, there is still a significant expectation for lithium carbonate prices to rise. According to a forecast by consulting firm Wood Mackenzie in its report "Lithium Outlook for Energy Transition," under the accelerated background of energy transition, global lithium demand will exceed 13 million tons by 2050, more than double the demand forecast in the baseline scenario. Without a large amount of new investment, a supply gap is expected to appear as early as 2028. A battery company executive told reporters that the continuous rise in lithium prices has had a significant impact on the industry, with some manufacturers experiencing losses due to poor cost transmission, forcing them to cut R&D investments or delay expansion plans. Meanwhile, leading companies are accelerating their layout towards upstream resources and seeking breakthroughs through cost reduction via technology. The cyclical fluctuations in lithium carbonate prices highlight the risks of relying on a single resource. Hu Yongsheng, director of the Clean Energy Laboratory at the Institute of Physics, Chinese Academy of Sciences, and chairman of Zhongke Haina, stated that China's lithium resources are highly dependent on imports, while important industries such as new energy vehicles and energy storage still mainly rely on lithium battery routes. The fluctuations in lithium resource prices are driving the battery industry towards a more diversified and recyclable direction. Zhai Haowei, vice president of investment at Guanghe Venture Capital, also pointed out that lithium price fluctuations are essentially the result of supply-demand relationships and market games, making the battery industry more urgently in need of low-cost and high-safety alternatives. "In recent years, the surge in lithium prices has spawned a large number of sodium battery companies, and as lithium prices have fallen, the industry has become more rational. The fluctuations in lithium prices are accelerating the reshuffling of the industry, with companies lacking core technologies and cost advantages likely to exit faster, while those with diversified technology reserves are expected to take the initiative in the new cycle," Zhai Haowei said. On the policy front, there is also guidance for the industry to shift from price competition to value competition. The mandatory national standard "Safety Requirements for Power Storage Batteries for Electric Vehicles" (GB38031-2025), organized by the Ministry of Industry and Information Technology, will come into effect on July 1, 2026. Industry insiders believe that the implementation of the new national standard further raises safety and technical thresholds, forcing companies to increase R&D investment, prevent "involution" competition in the power battery industry, and encourage companies to enhance product added value through technological innovation. Multiple technology routes advancing simultaneously Driven by both raw material fluctuations and scenario demands, new routes such as sodium-ion batteries and semi-solid batteries are accelerating from the laboratory to the production line. Taking sodium-ion batteries as an example, the technology continues to iterate and break through. Recently, a research team led by researcher Hu Yongsheng from the Institute of Physics, Chinese Academy of Sciences, successfully developed a polymerizable non-flammable electrolyte (PNE) with self-protection functions, achieving a complete blockage of thermal runaway in ampere-hour level sodium-ion batteries for the first time globally At the same time, the industry is accelerating the implementation of products. CATL launched its first mass-produced sodium-ion battery, the Tianxing II light commercial low-temperature version, this year; EVE Energy recently announced that the company's first large-capacity sodium-ion battery energy storage system has successfully completed grid connection debugging at its Jingmen base and has officially entered the commercialization phase; Zhongke Haina has just released its sodium battery product matrix and the operational data from the "three-site commercialization testing" of its sodium heavy-duty trucks. Hu Yongsheng pointed out that China's sodium battery is currently on the eve of industrialization explosion. In terms of energy density, mass-produced products have reached about 85% of lithium iron phosphate batteries, and power-type batteries have already leveled off; laboratory sample energy densities have reached the same level as lithium iron phosphate batteries. "Currently, the cost of lithium batteries is about 0.4 yuan per watt-hour, while sodium batteries are between 0.5 and 0.6 yuan. It is expected that by 2027, the two will be on par. As the supply chain improves and scales up, the cost of sodium batteries will continue to decline, while the cost of lithium batteries will fluctuate within a certain range. 2027 will be the real turning point for the commercialization of sodium batteries." Zhai Haowei also stated that the safety and temperature characteristics of sodium batteries are significantly better than those of lithium batteries, while also having advantages in cost and resource control, unaffected by fluctuations in upstream metal resources. This gives them enormous potential in the energy storage battery field and allows them to form a differentiated complementary relationship with lithium batteries in the power battery sector. "Currently, leading manufacturers such as BYD and CATL have begun preliminary attempts at sodium batteries in the electric vehicle sector. Lithium batteries will still be the mainstream power battery for some time, but sodium batteries will create a competitive landscape based on low cost, high safety, and superior low-temperature performance, becoming an important supplementary segment," said Zhai Haowei. Solid-state batteries have also made breakthroughs recently. GAC Group's Yinpei Battery Technology Co., Ltd. recently collaborated with the National New Energy Storage Innovation Center to launch the "Dafang Wuyu" series of 587Ah energy storage cells, with the Qiankun version being the first mass-produced semi-solid energy storage large cell. Chang Chun, R&D Director of Yinpei Battery, stated that all-solid-state batteries remain the ultimate goal of the industry, but there are currently three major challenges: interfacial resistance, material preparation, and cost. He believes that rather than waiting for breakthroughs, a more proactive strategy should be to find the optimal solution under existing conditions, quickly achieve industrialization, and continue to iterate. Yinpei has chosen to combine oxides with polymers, adding a small amount of electrolyte, achieving a balance of rigidity and flexibility, and can be compatible with existing production lines to achieve mass production at costs close to liquid batteries. Recycling systems enter the "2.0 era" While technology is rapidly iterating, as an important part of the battery industry's development, the recycling management of used power batteries has also welcomed a systematic upgrade, further promoting the battery industry towards a new stage of comprehensive development. Recently, the national new energy vehicle power battery traceability information platform was officially launched, replacing the original system with a comprehensive upgrade in functionality. Starting from April 1, the "Interim Measures for the Recycling and Comprehensive Utilization Management of Used Power Batteries for New Energy Vehicles," as the first departmental regulation in the industry, has officially been implemented, elevating requirements for traceability management and extended producer responsibility to a legally mandatory level. Hu Song, a senior expert at China Automotive Data Co., Ltd., pointed out that this management system upgrade to departmental regulation and the comprehensive optimization and upgrade of the information platform is not only an important milestone in the high-quality development process of China's new energy vehicle industry but also marks the official entry of China's power battery recycling and utilization management system into the 2.0 era A relevant person in charge of CATL stated in an interview with reporters that the healthy development of the battery industry requires alleviating resource pressure through diversified technological routes and industry chain collaboration. While accelerating the development of alternative technologies such as sodium batteries, it is also necessary to improve the battery recycling system and build a more resilient supply chain. In terms of standards, it is essential to fill the regulatory gaps through standard leadership and ecological co-construction, establishing a technical standard system covering battery research and development, application, recycling, and multi-scenario land, sea, and air, to form a healthy and sustainable industrial ecosystem ## Related News & Research - [Here's How Much $1000 Invested In Marvell Technology 10 Years Ago Would Be Worth Today](https://longbridge.com/en/news/284796012.md) - [Sandisk's eye-popping earnings beat fails to extend the stock's big rally](https://longbridge.com/en/news/284837001.md) - [BUZZ-Street View: Meta spends big on AI as ad engine keeps humming](https://longbridge.com/en/news/284725517.md) - [All Eyes on Micron Stock (MU) as Samsung's Profits Explode on Strong AI Chip Demand](https://longbridge.com/en/news/284739814.md) - [Caterpillar handily beat Wall Street estimates - not for the first time](https://longbridge.com/en/news/284775932.md)