After experiencing a period of low capacity utilization in the power battery industry chain in the first quarter of this year, market demand has clearly rebounded since March and demand has exploded during the peak season in April, driving the production recovery of lithium battery industry and the slight rebound of power battery prices.
According to the latest research by TrendForce, the capacity utilization rate of the power battery industry chain experienced a low point in the first quarter of this year. Since March, market demand has clearly rebounded and demand has exploded during the peak season in April, driving the production recovery of the lithium battery industry and the slight rebound of power battery prices. In May, the market continued to be in the peak season, and the demand for power batteries remained stable, leading to stable prices. Among them, the monthly average price of square ternary, square iron lithium and soft pack ternary power cells was 0.50 yuan/Wh, 0.43 yuan/Wh and 0.52 yuan/Wh, respectively.
With respect to storage batteries, the demand for solar energy storage has increased in May, and the demand for storage and grid integration projects in the Chinese market has entered the season for stock preparation from May to June, with the order volume of enterprises maintaining growth and the price of some enterprise products slightly rising. Among them, the average price of phosphate iron lithium storage cells in May was 0.43 yuan/Wh, which was the same as the previous quarter.
TrendForce analysis shows that storage battery products are currently switching from 280Ah to 314Ah. Although the 314Ah storage battery has not yet been shipped in large quantities, the penetration rate in the large-scale and commercial energy storage markets is expected to gradually increase in the second half of the year as the energy storage systems carrying 314Ah cells are gradually put into mass production, and their cost-effectiveness advantage will gradually emerge.
Overall, the market demand in the second quarter was better than expected, and the prices of power and storage batteries remained stable. However, it should be noted that during the peak season in April and May, industry chain stocking exceeded terminal installation demand, and the industry entered a phase of inventory accumulation due to the impact of cell factories' overproduction. TrendForce expects that the demand for battery materials will fall in the short term in June, and lithium prices will bear downward pressure. The cost support for power and storage cell materials will weaken, and the prices of cell at the end of the second quarter are estimated to remain stable or decrease slightly.