L R AS Published on Saturday 9 December 2023 - n° 469 - Categories:lithium batteries
General fall in battery prices due to raw material prices
Weakening demand for batteries is driving down the price of key raw materials such as lithium, cobalt and nickel, and therefore the price of batteries. Energy storage battery prices hit a new low
0.4/Wh, marking a month-on-month drop of 6.8%. The price of batteries for electric vehicles in China (denominated in RMB) fell by around 3 to 4% in the space of a month, while cobalt-coated lithium batteries for consumer electronics were down 2.5% month-on-month.
Faced with this situation, manufacturers have reduced their production capacity utilisation to below 50%. Some companies are even considering cutting back or halting production due to a lack of orders in a fiercely competitive market. Some battery suppliers are significantly reducing their prices in order to eliminate their stocks.
In the short term, the fall in demand is leading to a situation of short-term oversupply in the electric battery market.
In the first quarter of 2024, demand is likely to remain sluggish. Demand could rebound in the second quarter.
Manufacturers are in the process of shutting down the least efficient production lines. As a result, the rate of growth in market supply should slow, providing a favourable environment for restoring the balance between demand and supply for electric battery products.
https://www.energytrend.com/news/20231206-40833.html
EnergyTrend of 6 December 2023
Editor's note It is curious that demand for batteries, especially automotive batteries, is so weak, when it seemed that the situation was the opposite. Obviously, lower prices can only boost demand.
