TOKYO (Reuters) – Rising raw material prices, including nickel, accelerated Russia’s invasion in Ukraine had a “big impact” on Panasonic Corp (OTC:) Corp. The CEO stated that the Japanese industrial powerhouse was unable pass some of the increases on to its customers.

According to our contracts, we are able pass costs on to certain business clients. Higher prices are more challenging to pass on to customers,” Yuki Kusumi, the CEO of a company making products ranging in product range from Tesla (NASDAQ) Inc’s electric vehicles to washing machines said.

Kusumi, at a briefing roundtable, stated that Panasonic responded by improving the manufacturing machinery to absorb additional expense. However, those measures did not cover huge price increases.

Global nickel prices have soared, with much of Russia’s supply used to produce batteries. They reached more than $100,000 per tonne by March.

Panasonic stated in February that the third quarter operating profits fell 44% due to rising costs of materials. It is expected that the company will announce results for next month’s year ending March 31.

Kusumi became the CEO last year and released his first midterm strategic plan this month. It included an investment in automobile battery production, supply chain services, and the air conditioner business.