In January, Pouch-Type Ternary Power Battery Cell Prices Drop 7.3% to $0.51 per Wh, Reveals TrendForce.
TrendForce’s latest report highlights a continued slump in the global lithium battery market in January, with all types of power battery cell products witnessing price reductions in China. Pouch-type automotive ternary power battery cells experienced the most significant decline, plunging by 7.3% to RMB 0.51 yuan ($0.071) per Wh. TrendForce predicts a persistently downward trend in average prices, particularly for pouch-type cells, throughout February.
The average price of prismatic ternary battery cells also dipped, registering a 5.9% decrease from the previous year to RMB 0.48 per Wh in January. Similarly, prismatic lithium iron phosphate power battery cells saw a 4.4% drop to RMB 0.43 per Wh during the same period.
Although lithium prices have stabilized, the report cautions that the growth of the electric vehicle market in 2024 might face a slowdown. Notably, Tesla has hinted at a reduction in its 2024 sales growth during its fourth-quarter earnings meeting.
Amidst intensified market competition and a drive to cut costs, Chinese battery suppliers are expected to prioritize cost reduction measures, potentially pushing power battery cell prices down to the RMB 0.3/Wh level, according to TrendForce. This may pose challenges for manufacturers facing difficulties in securing upstream raw materials, and the overall market price for power battery cells is anticipated to remain on a downward trajectory in the first quarter.
Regarding energy storage cells, the report notes no significant fluctuations in market demand as the Chinese New Year approaches. Energy storage battery prices, however, remained relatively stable, experiencing a modest 2.2% decrease to RMB 0.44/Wh in January.
On January 16, local media outlet 36kr reported an intensifying price war in the power battery segment, with CATL and BYD, the world’s two largest battery manufacturers, driving costs down further. The report highlights a transition from a state of tight supply to oversupply in the power battery market within a year, with prices gradually approaching the RMB 0.3/Wh mark.
(Note: The currency exchange rate is $1 = RMB 7.1795)
