Li Auto Inc (NASDAQ:) announced Wednesday that the company would be increasing the price of its Li ONE model from 338,000 yuan to 349,800 yuan ($53,025 to $54,876). This is due to the rising cost of raw material.

Li Xiang (founder and CEO, Li Auto) commented earlier on March 19 on the price rise trend.

Xiang stated that “At the moment, the car manufacturers who have entered into agreements with the battery makers to establish the price range for the second quarter of the batteries basically announced the price rise immediately.” The majority of companies who have not yet announced a price rise have not entered into negotiations with battery manufacturers. They will increase their prices immediately after the discussions are over.

The second quarter’s dramatic increase in battery prices was shocking. Li said that war, politics, and pandemics have allowed car purchasing to increase, while the total price of used cars in the U.S. increased by 30%.

Li Auto is among several EV makers that have recently increased their pricing. Tesla (NASDAQ:), has experienced two price increases in recent weeks. On Monday, Xpeng (NYSE) announced price increases.

The new pricing for Li Auto will go into effect April 1, 2022.

By Michael Elkins