BYD to raise battery prices 20% as lithium costs soar fourfold

Chinese EV giant to cancel pending contracts, potentially hitting other makers

20211027 BYD

A bus is prepared for delivery the BYD electric bus factory in Lancaster, California, U.S., on July 1. © Reuters

LU YUTONG and DENISE JIA, Caixin

Chinese electric vehicle and battery maker BYD will increase the price of battery products by at least 20% effective Nov. 1, the company said on Monday in a letter to clients.

The move is further evidence that inflation is hitting producers and subsequently consumers. The costs of raw materials to manufacture lithium batteries has soared this year as a result of surging demand for EVs and China's energy crunch.

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