# Lithium Hexafluorophosphate Prices Nearly Halved in 3 Months: Where Will It Go Next?

Fluorine Online Data shows that on March 18, the domestic price of lithium hexafluorophosphate continued to decline, with market transaction prices ranging from 98,000 to 110,000 yuan per ton, down as much as 45.6% from the peak of 180,000 yuan per ton in December 2025.

Data from ZhuoChuang Information indicates that on March 18, the highest price of lithium hexafluorophosphate in East China was 115,000 yuan per ton, significantly lower than the peak of 170,000 yuan per ton in November 2025.

Reporters contacted several listed companies and interviewed industry analysts, learning that the first quarter is traditionally a slow season for lithium hexafluorophosphate. The recent price decline is mainly due to weakened supply and demand. Looking ahead to 2026, lithium hexafluorophosphate prices are expected to rebound in the second quarter and may remain relatively high throughout the year.

Short-term supply and demand tightening is the main cause of price fluctuations

“Entering 2026, the supply and demand situation for electrolytes and lithium hexafluorophosphate in China is showing signs of contraction,” said Jin Peipei, an electrolyte analyst at Longzhong Information, to the Shanghai Securities Journal. Since January, the market has shown clear off-season characteristics, especially influenced by the Spring Festival holiday, with significantly reduced trading activity and upstream and downstream factories shutting down or taking holidays.

“Q1 is inherently a traditional off-season, compounded by low operating rates of downstream battery manufacturers in January and February, and significant fluctuations in the price of the core raw material, lithium carbonate, during these months. The intense competition between upstream and downstream has prevented lithium hexafluorophosphate prices from rising in tandem, and overall, the market remains in a supply-demand tug-of-war,” said Tianji Co., a listed company.

As an investor, a reporter contacted three leading companies and learned that companies mainly operating on long-term contracts are generally stable.

“Most top clients sign long-term contracts, so product prices are not as high as the market prices, and overall, they remain relatively stable,” said a staff member at Tinci Materials. The company’s long-term contracts specify purchase volumes but do not lock in fixed prices; pricing usually references the average market price of the previous month or offers a certain discount based on market prices. Market quotes mostly correspond to small spot transactions.

Tinci Materials revealed that its current lithium hexafluorophosphate capacity is 110,000 tons, with an additional 35,000 tons expected to come online in the second half of the year through technological upgrades.

The securities department of Tianji Co. stated that the company has maintained full production and sales, with overall operational pressure under control. The ratio of long-term to spot sales is about 7:3, with prices generally negotiated monthly, resulting in relatively stable price fluctuations. The current pricing model is based on “lithium carbonate cost + processing fee.”

An insider from another leading listed company told reporters that their current orders are mainly spot transactions, settled at the latest market prices, making them more susceptible to market fluctuations. The company’s shipment volume and operating rate are expected to remain relatively stable in the first quarter, with little likelihood of new capacity being added this year.

Second quarter may see a rebound

Xinluo Lithium predicts that lithium hexafluorophosphate prices will remain high throughout 2026, with demand peaking in the third and fourth quarters. It is expected that supply and demand will become mismatched quarterly, continuing to push prices upward.

Regarding the first half of the year, Jin Peipei analyzed that the market prices for electrolytes and lithium hexafluorophosphate will follow a pattern of initial decline followed by recovery. Prices are expected to fall in the first quarter, then rise in the second quarter as downstream demand gradually recovers, potentially entering an upward trend.

Currently, the market is optimistic about both supply and demand growth for the full year. Xinluo Lithium forecasts that global lithium hexafluorophosphate production will reach 375,000 tons in 2026, with about 150,000 tons of effective capacity coming online this year. The total effective capacity is expected to reach 400,000 tons, with an operating rate exceeding 90%.

Jin Peipei believes that on the supply side, driven by the dual forces of inventory accumulation and storage, electrolyte and lithium hexafluorophosphate output are expected to increase further with downstream demand growth, maintaining a production-to-sales ratio. On the demand side, the steady increase in penetration of new energy vehicles will continue to stimulate demand growth; energy storage is expected to maintain high prosperity, boosted by AI demand, with significant incremental growth.

Fluorine Online Fluorochemical Analyst told the Shanghai Securities Journal that market expectations were positive and demand was strong before the new year, with leading companies leveraging their production concentration to resist price declines, pushing prices higher. After the new year, idle capacity utilization among small and medium-sized enterprises increased, significantly boosting supply, leading to a rational price correction. Looking ahead, energy storage demand will continue to be released, and the number of supply companies for lithium hexafluorophosphate will gradually increase, but industry output remains concentrated among top players.

(Source: Shanghai Securities News)