On December 2, the lithium iron phosphate (LFP) sector in the A-share market outperformed amid broader market weakness. Key players such as Jiangsu Lopal Tech. Group Co.,Ltd. (603906.SH), Hunan Yuneng (301358.SZ), and Wanrun New Energy (688275.SH) saw collective stock price gains. LOPAL TECH surged over 9% intraday before closing up 6.29%, while Hunan Yuneng and Wanrun New Energy rose 1.8% and 1.35%, respectively, reflecting heightened investor interest in the sector.
The market movement follows reports of an industry-wide price hike initiative. Multiple leading LFP producers have reportedly issued formal price adjustment notices to clients. One major firm announced a ¥3,000/ton (pre-tax) increase in processing fees for all LFP products effective January 1, 2026, while another implemented hikes starting November 1, 2025, with pre-November orders honored at original rates.
In response to investor inquiries, LOPAL TECH confirmed ongoing price negotiations with clients, citing rising raw material costs and compressed profit margins as primary drivers. "With sustained demand growth, price adjustments are an inevitable industry trend," stated a company representative, expressing optimism about future LFP pricing.
The price adjustments align with industry benchmarks. The China Industrial Association of Power Sources' LFP Materials Division recently published cost guidelines based on audited data from seven top manufacturers, establishing a Q1-Q3 2025 average production cost range of ¥15,714.8–16,439.3/ton (pre-tax) and urging compliance to prevent predatory pricing.
Companies are actively responding to these standards. Wanrun New Energy emphasized in its November 25 investor briefing that abandoning cutthroat competition and adhering to cost-based pricing would enhance profitability. Hunan Yuneng, during December 2 investor calls, attributed its price increases to supply-demand imbalances and cost pressures, reporting successful client negotiations.
Market data confirms the upward trajectory. As of December 1, Guangda Futures reported LFP battery-grade prices reaching ¥39,485/ton and mid-high-end energy storage grades at ¥37,930/ton, both up ¥154 from the previous session.
However, financial recovery may lag. LOPAL TECH acknowledged significant Q1-Q3 losses with limited near-term profit potential, but maintained long-term sector optimism. Institutional analysis supports this view, with Kaiyuan Securities identifying a supply-demand inflection point driven by robust demand across electric vehicles, energy storage, and consumer electronics sectors, particularly for capacity-constrained segments initiating price hikes.
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