As the leading indicator of price increases in lithium battery materials, lithium hexafluorophosphate (LiPF6) kicked off a strong rally in 2025. By the end of last year, its price had surged to RMB180,000 per ton, marking an increase of over 280% in just six months. This robust price rebound has significantly improved the performance of LiPF6 manufacturers.　

01 Sustained Market Demand Boom

Over the past year, both the new energy vehicle (NEV) market and the energy storage market experienced rapid growth.

Industry data indicates that in 2025, China's automobile production and sales both exceeded 34 million units, setting new historical records. Among these, NEV production and sales surpassed 16 million units, with NEVs accounting for over 50% of domestic new vehicle sales. Against the backdrop of global renewable energy transition, China's energy storage market also experienced explosive growth in 2025. By the end of 2025, the cumulative installed capacity of new energy storage systems reached 144.7 GW, representing an 85% year-on-year increase compared to 2024.

According to statistics from the Power Battery Application Branch Research Center, China's total power battery installed capacity from January to December 2025 reached 781.4 GWh, marking a 41.6% year-on-year increase.

Booming downstream market demand has driven significant growth in upstream material demand and prices. Since the second half of 2025, lithium hexafluorophosphate (LiPF6) prices have experienced a significant rebound, surging from approximately RMB 47,000/ton in July to RMB 180,000/ton in December—a rise exceeding 280%. This surge has become the core driver behind the recovery in electrolyte prices.

Notably, due to market supply-demand fluctuations and other factors, LiPF6 prices have recently corrected downward. On February 3, the spot price of LFP6 stood at approximately ¥138,000 per ton, marking a cumulative decline of over ¥40,000 per ton in the past month—a drop exceeding 20%.

“As a core raw material for lithium battery electrolytes, the price of lithium hexafluorophosphate is influenced by multiple factors including upstream and downstream supply-demand dynamics, industry competition, changes in supply chain costs, and fluctuations in end-market demand such as new energy vehicles,” industry analysis indicates. The sector is currently undergoing dynamic adjustments, with future price trends expected to align with shifts in the supply-demand landscape across the industry chain.

02 Potential Supply Shortage

From a supply-demand perspective, lithium hexafluorophosphate prices are structurally supported by market fundamentals. Industry institutions project that if demand from the new energy sector continues its rapid growth this year, a supply shortage may emerge, with an estimated deficit of approximately 7,000 metric tons expected by the fourth quarter of 2026.

After enduring several challenging years, the lithium hexafluorophosphate industry is emerging from its trough and entering a new growth cycle. The current robust price surge is a structural phenomenon driven by a fundamental shift in supply-demand dynamics, strengthened cost support, and increased industry concentration. Companies possessing advantages in production capacity, cost efficiency, and technology will benefit significantly.

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