China’s Farasis Energy in second round of negotiations for battery price rise

Shanghai (Gasgoo)- Chinese power battery maker Farasis Energy is having the second round of negotiations for battery price adjustment with its OEM clients, Zhang Feng, senior vice president at Farasis Energy, said at the China EV100 Forum 2022.

Photo credit: Farasis Energy

Due to the rising raw materials prices, Farasis Energy lifted battery prices from Jan. 1, 2022, as a result of the first-round negotiations closed in December last year, said Mr. Zhang. He added the price negotiations with most automakers had been completed, settling on a non-negotiable price.

He also disclosed that the prices following the first round were all increased by over 25%.

Mr. Zhang noted the current constraints of upstream power battery raw materials mainly result from the lengthy process of battery production capacity expansion, immature exploitation technologies, and the disruption to logistics operations. However, he believed that the raw materials supply would recover next year with the growth of overseas minerals production capacity and the improvement of lithium extraction technology.

To reach the goal of 120GWh annual battery production capacity by 2025, there will be 55GWh capacity to be newly constructed by second quarter of 2024, said Mr. Zhang.

For the first two months of 2022, Farasis Energy recorded a battery installed capacity of 0.54GWh, ranking 7th among power battery makers in China.