Coveted by U.S. suitors, battery maker BYD raises prices

U.S.-listed BYD, whose carmaking division is backed by Warren Buffett, won’t let expensive raw materials drain its profits:

• Material costs are up 200% and 150% for necessary lithium-cobalt compounds and electrolytes, respectively. BYD is increasing prices by 20% to compensate.
• Meanwhile, the company is rumored to be Tesla’s preferred supplier for U.S.-made cars, since it already has its own U.S. factory.
• But it reportedly turned down Apple’s request to build a factory and development team devoted to its long-awaited electric car.

The takeaway: There is a lot of growth left in the industry, and not just for BYD and CATL, which is also going to make batteries for new Tesla models. Many other Chinese companies in the space are booming too:

• Profits are up 506.99% and 807.42% year-over-year — yes, you read those right — at battery ingredient suppliers Ganfeng Lithium and Hunan Changyuan Lico, respectively.
• A company whose name literally means “God-Given Materials” (天赐材料) is reinvesting its profits, up 273%, in $2.4 billion worth of materials production and battery recycling projects.

Also relevant: Another thing juicing lithium companies’ long-term growth: both China and the United States have announced ambitions for EVs and other new energy vehicles to make up 40-50% of car sales by 2030. That’s a lot of batteries.