Farasis Energy (Gan Zhou) Co.Ltd(688567) Zhang Feng: the power battery supply is tight and will not change in the short term. It is relatively abundant at the beginning of next year

Beijing News, shell finance and Economics (Reporter Lin Zi) on March 27, at the forum of the 8th China electric vehicle hundred people's Congress, Zhang Feng, Farasis Energy (Gan Zhou) Co.Ltd(688567) senior vice president and Secretary of the board of directors, said in an interview that Farasis Energy (Gan Zhou) Co.Ltd(688567) has completed the price negotiation of most major customers. Due to the rise in the price of raw materials, the price increase of major customers began on January 1 this year. At present, Farasis Energy (Gan Zhou) Co.Ltd(688567) has also been in friendly consultation with some major customers.

It is reported that Farasis Energy (Gan Zhou) Co.Ltd(688567) is the main manufacturer of ternary soft pack power batteries in China, and continues to provide power batteries for Daimler, GAC, Geely, Dongfeng and other customers. As the price of raw materials rises, the price of battery products will also rise.

The reporter learned that in recent months, Farasis Energy (Gan Zhou) Co.Ltd(688567) is conducting price negotiations with key customers. In 2022, the price of the company's products will increase to varying degrees, and the price negotiations between the company and Daimler are still in progress.

For the rise in raw material prices, Zhang Feng pointed out that the content of lithium in the earth's crust is not low. The core factors for the rise in prices are the slow expansion cycle of minerals, the short logistics board and the failure of technological breakthrough to reach the critical point.

On the whole, Zhang Feng believes that with the mitigation of the epidemic in the second half of the year, the rise of raw materials at the end of this year and the beginning of next year will be improved. However, large-scale price adjustment also requires breakthroughs in China or overseas to rebalance supply and demand. This time point may appear next year.

Referring to the tight battery supply, Zhang Feng said that this situation is not expected to change in the short term. He explained that the battery production capacity is very tight now. Farasis Energy (Gan Zhou) Co.Ltd(688567) this year's production capacity has been booked. At present, it is also tight next year. He said that the battery supply will not be relatively abundant until the beginning of next year.

- Advertisment -