On March 25, 2022, China EV100, a major electric vehicle (EV) industry association and think tank in the country, has held the eighth edition of its annual forum (hereinafter referred to as “the Forum”). One of the main topics discussed at the Forum is the costs of EV batteries and raw materials, particularly lithium.

The price of lithium carbonate, a main raw material of EV batteries, has been surging since the beginning of 2022 in China. Currently, the price has stabilized at around RMB 500,000 per ton, a rise of 80% compared to 1 January and almost quintupled with the year-on-year price.

Since 2022, most of China’s major EV brands have raised their prices, mostly within a range of RMB 3,000-7,000. The prices of certain types of Tesla Model 3 and Model Y have risen by more than RMB 20,000 since January. Nio (a local Chinese electric car manufacturer) is currently the only major EV brand that is still hesitating to increase prices.