Demand for power batteries in China was steady overall in July, but battery material costs continued to fall, resulting in a slight downward trend in battery cell prices, TrendForce said.
Electric vehicle (EV) battery prices continued their downward trend in China, as battery material prices kept falling.
Demand for power batteries in China was generally stable in July, but the cost of battery materials continued to fall, resulting in a slight downward trend in battery cell prices, market research firm TrendForce said in a report today.
The decline in battery material costs was mainly due to the continued decline in cathode material prices, as well as falling prices for battery metals such as cobalt, nickel and copper, with copper prices in particular falling sharply, according to the report.
EV battery cells fell about 2 percent in July from June, according to TrendForce.
The average price of square ternary cells was RMB 0.48 yuan ($0.0672) per Wh in July, down 2.1 percent from June. The average price of square lithium iron phosphate (LFP) cells was RMB 0.41 per Wh in July, down 2.6 percent from June. The average price of soft pack ternary cells was RMB 0.5 per Wh in July, down 2 percent from June.
For energy storage battery cells, their prices saw a bigger drop due to lower demand and falling raw material prices.
The average price of square LFP cells for energy storage was RMB 0.38 per Wh in July, down 9.2 percent from June, according to TrendForce.
Orders for energy storage cells decreased in July and production slipped from the previous month, TrendForce said.
Meanwhile, prices of cathode materials, electrolyte, and copper foil declined to varying degrees, making it difficult to support the price of energy storage batteries, according to the report.
In addition, the share of shipments of high-capacity cells of 280 Ah and above, which have more cost advantages, continued to increase, resulting in the average price of LFP energy storage cells falling to about RMB 0.38/Wh in July, down 9 percent from June.
At present, China's lithium carbonate supply oversupply pressure remains strong, and the price of lithium carbonate has fallen to about RMB 80,000 per ton at the end of July, TrendForce said.
The pattern of China's lithium carbonate oversupply remains unchanged, and prices are expected to remain low in the third quarter, TrendForce said.
TrendForce also noted that Chinese battery makers replenished their inventories in late July due to the implementation of tariff hike policies in overseas markets and other impacts, which is expected to drive an increase in orders from the upstream of the industry chain in August.
Although the downward trend of lithium prices remains unchanged, the rate of decline may moderate, TrendForce said.
($1 = RMB 7.1446)
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