Hyperdrive

Chinese Battery Supplier to Xiaomi Hikes Prices as Costs Surge

  • Ganfeng unit cites ‘huge increase’ for raw material charges
  • Supply has lagged amid logistical woes, investment shortfall
Xiaomi Mi Mix Fold foldable smartphone.Photographer: Angel Garcia/Bloomberg
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A unit of China’s top lithium producer Ganfeng Lithium Co. is raising prices for small batteries used in consumer electronics like headphones that are produced by companies including Xiaomi Corp. and Oppo.

Xinyu Ganfeng Electronics Co. sent a letterBloomberg Terminal to customers on Friday saying prices for new orders would be evaluated amid a substantial hike in power cell costs. The Chinese lithium producer confirmed the content of the letter seen by Bloomberg News; it didn’t give a size of the price increases for its customers.