China-based LFP (lithium iron phosphate) battery makers, despite increases in material cost, are willing to maintain quotes at current levels by absorbing such increases themselves, according to China-based media reports.

Chinese makers dominate global supply of LFP batteries, with Contemporary Amperex Technology, BYD, Gotion High-Tech and EVE Energy being leaders.

Among materials for LFP batteries, prices for cathode materials have hiked about 30% in the past three months.

While global demand for LFP batteries keeps growing along with increasing adoption for electric vehicles (EV) and energy storage systems, Chinese makers have been expanding production capacities. To stay competitive, they are avoiding raising prices.

Currently, quotes for square-shape LFP power batteries stand at CNY0.525 (US$0.08)/Wh on average, lower than CNY0.66/Wh for ternary models.