The turmoil in the Middle East is affecting the lithium battery industry, causing prices of several materials to rise.

The impact of the situation in the Middle East on the lithium battery materials supply chain is gradually spreading.

Initially triggered by violent fluctuations in the oil and gas markets, this effect has extended to chemical raw materials, phosphorus chemical intermediates, and both positive and negative electrode materials. As of March 18, this transmission has moved beyond mere speculation.

Data from multiple market institutions indicate that since March, the prices of electrolyte solvents have risen significantly, with some varieties experiencing monthly increases exceeding 20%.

Additionally, needle coke, a raw material for negative electrodes, has seen localized price hikes. Prices of sulfur and phosphoric acid at the phosphorus source continue to strengthen, beginning to pass cost pressures onto iron phosphate and lithium iron phosphate.