Rising cobalt prices and delays in the design of low-cobalt ternary batteries
First written in FY2018-Q2. 1 of 2 entries say "Materialised", first in FY2018. Latest entry: FY2018.
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- FY2018MaterialisedAnnual report
「Concern over deteriorating liquidity across the battery industry due to a review of the government's subsidy program for automotive battery businesses led us to curb sales to China.」
The review of the subsidy program and concern over deteriorating liquidity in the battery industry have been reflected in actual operating decisions to curb sales to China. - FY2018-Q2First statedAnnual report
「Although the market for conventional lithium iron phosphate batteries continued to expand, subsidy allocations were shifted toward ternary, high-energy-density products to improve driving range. At the same time, the impact of surging cobalt prices forced customers to rapidly work on technically challenging low-cobalt ternary battery designs, and product design has continued to require considerable time.」
Surging cobalt prices and changes in subsidy allocations led customers to proceed with low-cobalt ternary battery designs, which have required time to develop. This is described as the background to the short-term decline in sales in the Chinese market.