SHANGHAI – The price of lithium hexafluorophosphate (LiPF6), a critical electrolyte material for lithium-ion batteries, has accelerated past 110,000 yuan per ton this week, concluding a month where gains approached 70%. This surge signals a powerful market recovery after an extended period of depressed prices.

Industry data from October 31st confirmed offers reaching 110,000-115,000 yuan per ton, a sharp rise from approximately 65,000 yuan at the end of September. The upward momentum has been sustained for several consecutive days, firmly establishing the material above the significant 100,000 yuan threshold.

Key Price Drivers

Analysts point to a confluence of factors behind the sharp price increase. A significant reduction in readily available spot supply has been a primary catalyst. Several producers, having operated at a loss during the previous downturn, have been slow to restart idled capacity. Concurrently, scheduled maintenance at some facilities further tightened the market.

On the demand side, the momentum remains strong. "Procurement activity from major electrolyte manufacturers has been consistently high," noted an analyst with CIC Energy. "Orders are firm, and inventory levels across the supply chain are lean, which amplifies the price impact of any supply-demand imbalance."

Favorable Dynamics for Producers

This environment has shifted leverage to leading LiPF6 manufacturers. Companies like Do-Fluoride and Tianci Materials are reportedly operating at high utilization rates. "Our production lines are fully loaded, and we are focusing on fulfilling long-term agreements," stated a representative from a major producer. "The spot market is very tight."

The profitability of these companies has improved markedly. After a challenging period where margins were squeezed, the current price level is well above the cash cost for most established players, paving the way for stronger financial results in the fourth quarter.

Market Outlook

While the price spike has been dramatic, the market is expected to remain firm in the near term. The ongoing energy transition, supported by strong electric vehicle sales and unprecedented growth in grid-scale energy storage projects, underpins long-term demand.

"Barring any unexpected drop in battery production, we see the LiPF6 market staying tight through the first quarter of next year," the CIC Energy analyst added. "The new equilibrium price is likely to be higher than the lows seen earlier this year, promoting healthier and more sustainable industry growth."