March 12, 2026: Battery separator manufacturer Microporous is considering price increases amid rising energy costs and market volatility sparked by the conflict in Iran and wider Middle East.
Meanwhile, the latest industry analysis has warned that regional hostilities are sending shockwaves through the global energy and chemical markets, with critical raw material supplies for the battery manufacturing sector among those affected.
Microporous said on March 6 it had launched a detailed assessment of the overall impact on its production costs and supply chain operations in light of the “magnitude and speed” of hostilities in the region.
The company said it is evaluating the implementation of a surcharge as a measure to reflect the exceptional increases in energy-related input costs.
Energy remains a key driver not only of direct manufacturing costs but also of upstream raw material pricing, the firm said.
“As a result, substantial cost pressure is being observed across critical manufacturing inputs, including silica, polyethylene, and process oil, whose pricing structures are closely linked to energy market dynamics.
“This action is being considered with great care and solely in response to extraordinary market conditions. Microporous remains fully committed to transparency, reliability of supply, and long-term partnership with its customers and stakeholders.”
Rob Gilfillan, head of polymer and fibres at Wood Mackenzie, said on March 11 that markets for materials including polyolefins face the highest exposure, with Middle East suppliers accounting for 20%-30% of demand in key Asian and European markets.
Polyolefins, primarily polyethylene and polypropylene, are used in commercial lithium ion battery components, specifically for separators, and in automotive battery casings.
For chemical markets, the implications are significant but not yet catastrophic, Gilfillan said.
Drawing on the firm’s oils and chemicals analysis, Wood Mackenzie’s base case scenario assumes a two-week closure of the key Strait of Hormuz would be manageable given product already in transit and existing buyer inventories providing coverage through mid-March.
However, Wood Mackenzie noted some feedstock prices have already surged dramatically.
