Battery cell prices fell slightly in July; lithium prices down too
In July, prices of EV cells fell by 2% compared to June. By the end of July, lithium carbonate prices fell to CNY 80,000 per ton. Lithium prices are expected to continue to fall in August.
Demand for EV cells remained stable in July but the continued price decline for cathodes led to a drop in the cost of battery materials and a slight fall in battery cell prices, according to a report by TrendForce.
Falling prices for battery metals such as cobalt, nickel and copper has also contributed to the fall in battery cell prices.
In July, the prices of EV cells decreased by 2% compared to June. Monthly ASP for square ternary, square LFP, and pouch ternary EV battery cells were CNY 0.48/Wh, 0.41/Wh, and 0.50/Wh, respectively.
Market orders for ESS batteries weakened in July, with the industry’s production volume declining compared to the previous month.
Also, prices for raw materials such as cathode materials, electrolytes, and copper foil saw varying degrees of decline, making it difficult to support ESS battery prices.
Moreover, the shipment proportion of large-capacity cells (>280 Ah) with greater cost advantages has continued to increase. Consequently, the ASP for LFP ESS cells fell to about CNY 0.38/Wh in July — a monthly drop of 9%.
According to TrendForce, there is still significant pressure from oversupply in China’s lithium carbonate market. By the end of July, lithium carbonate prices had fallen to around CNY 80,000 per ton due to weak market conditions, but the reduction in supply was not substantial. Given the accelerated decline in market demand, the oversupply remains unchanged. It’s estimated that lithium carbonate prices will continue to fluctuate and hit new lows in the third quarter.
The implementation of tariff policies in overseas markets such as the US led to restocking among cell makers in late July. This forward shift in demand is expected to increase upstream orders in the supply chain in August. Although the downward trend in lithium prices is expected to continue, the rate of decline may slow down, the report says.
TrendForce provides market intelligence and professional consultation services for clients across industries. It’s also a platform for exchanging market information among firms in different sectors.
