Several leading Chinese suppliers of lithium iron phosphate (LFP) battery materials are moving to raise prices next year, seeking to reverse years of sustained losses amid higher upstream raw material costs and rapidly growing demand from the energy storage sector, industry sources said.

One major manufacturer said at a recent industry conference that processing fees across its full range of LFP products will be increased uniformly starting next year. Other producers have already implemented price hikes, while some are still in talks with customers, according to people familiar with the matter.

“Price increases have become an irreversible trend,” several companies said, adding that higher prices are expected to help restore profitability across the sector.

China’s LFP battery materials industry has been under financial strain for more than 36 consecutive months. An industry association said six listed companies in the sector reported an average debt-to-asset ratio of about 68%, underscoring the pressure facing producers after a prolonged period of losses.