Spanish-made car battery prices could double in coming months if the cost of lead continues to soar, a leading official from Spain’s auto parts lobby Sernauto told just-auto.
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He said lead prices rose 43% in the third quarter and that manufacturers would need to pass this increase to customers in the near future.
“Battery distribution is governed by fixed supply contracts but, given the recent raw material increases, the market needs to be ready for a sharp price rise,” Sernauto board member Miguel Angel Obregon said.
In the London markets, the price of lead – which accounts for 90% of a battery’s production cost – has doubled to EUR2,514 per tonne from EUR1,285 per tonne in the past nine months, according to Sernauto.
The development is particularly relevant to Spain because two leading global battery suppliers – Johnson Controls and Exide Tudor – carry out a large proportion of their European manufacturing in the country.
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By GlobalDataHome to large factories operated by Renault, PSA-Peugeot Citroen and Ford, Spain is Europe’s third-largest car maker although it has started losing market share to cheaper producers in eastern Europe.
Obregon said 80% of battery production is exported to international markets and 20% sold in Spain.
Booming demand from China’s industries and scarce supplies are two key reasons driving the lead price increase, Sernauto said.
Ivan Castano
