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Portuguese Dear Valued Partners,
Greetings from Shandong Huatai New Energy Battery Co., Ltd. As a long-term partner of Linyi Huatai Battery, you are aware of our commitment to providing high-performance energy solutions at competitive prices. However, we are writing to share a transparent update regarding several unprecedented challenges currently reshaping the global battery industry.
As of late February 2026, the convergence of three major factors is directly impacting our production costs:
Raw Material Surge: The price of Zinc Ingots (essential for our Alkaline and Carbon Zinc batteries) has breached $3,360/ton on the LME. Simultaneously, battery-grade Lithium Carbonate prices have rebounded sharply due to the high demand for Solar Energy Storage and EV batteries, significantly narrowing our profit margins.
Currency Appreciation: The RMB has strengthened against the USD, reaching a multi-month high (approx. 6.84). This shift reduces our effective export revenue and puts immense pressure on our current pricing structures.
Policy Shifts: The Chinese government has announced a reduction in the VAT export tax rebate for battery products, dropping from 9% to 6% starting April 1, 2026.
Our Solution for You: While a price adjustment is becoming inevitable for orders shipped after March, we want to protect your interests. We highly recommend confirming your Q2 and Q3 requirements before March 15th. By doing so, we can utilize our current material reserves to lock in the existing rates and bypass the upcoming tax rebate reduction.
FAQ: Understanding the 2026 Price Adjustment
Q1: Why is the price change happening so suddenly in early 2026? A: The convergence of the LME Zinc ingot surge (now over $3,350/ton) and the April 1st export tax rebate cut created a critical cost threshold. We are acting now to give you a window to secure stock before the 3% rebate loss takes effect.
Q2: Can we lock in the old price for a large yearly contract? A: Yes. For core partners of Linyi Huatai Battery, we offer a “Price Locking” program for orders placed before March 15th, provided the deposit is secured to finalize raw material procurement at current rates.
Q3: Does the RMB appreciation affect our existing credit terms? A: While credit terms remain, the total invoice value in USD must reflect the current exchange rate (approx. 6.84 CNY/USD) to ensure Shandong Huatai can maintain its high-quality production standards.
We value your trust above all else. Linyi Huatai Battery will continue to leverage our Hibar automated lines to minimize waste and ensure you receive the most cost-effective power solutions in the market.
Sincerely,
The Export Department Shandong Huatai New Energy Battery Co., Ltd.
