According to the latest research results from TrendForce, the nickel, cobalt, lithium, and other battery metal markets in August are still weak, and the prices of related raw materials continue to fall.
According to the latest research results from TrendForce, the nickel, cobalt, lithium, and other battery metal markets in August are still weak, and the prices of related raw materials continue to fall. The decline in lithium spodumene has further widened, with a decrease of 16% compared to July. Some lithium ore prices have dropped to less than $800 per ton. In addition, the continuous decline in the prices of cobalt salt and nickel salt has also triggered a chain reaction in the prices of cathode materials and electrolytes.
TrendForce points out that the continued decline in the cost of lithium-ion battery materials has led to a further drop in the prices of battery cells. In August, the price of power battery cells dropped by 4% compared to July. The average price of square lithium iron phosphate power battery cells fell below RMB 0.4 yuan/Wh, and the average monthly prices of square ternary and pouch-type ternary power battery cells were RMB 0.46 yuan/Wh and 0.48 yuan/Wh, respectively.
In the field of energy storage cells, the demand in the large storage market gradually improved in August, driving the continuous growth of 314Ah orders. The trend of energy storage cells iteratively moving towards higher capacity remains unchanged, and the prices of battery cells continue to decline. In August, the average price of lithium iron phosphate energy storage cells dropped to about RMB 0.35 yuan/Wh, a 6% decrease compared to July.
TrendForce stated that after reaching a bottom in late August, the price of lithium carbonate has begun to stabilize. Although there is still an excess supply of lithium carbonate in the Chinese market, the effects of upstream production reductions are gradually becoming apparent. After a period of destocking in the industry chain, coupled with the arrival of the traditional peak season (September-October), downstream companies have become more proactive in stocking up, and it is estimated that lithium salt prices will see a small rebound in the short term.
Due to the current recovery in downstream demand, cathode material and battery cell manufacturers have increased their production plans. However, Chinese new energy vehicles still face trade pressures in overseas markets. TrendForce believes that although external uncertainties still exist, battery manufacturers may stock up ahead of time when lithium prices are nearing the bottom, and it is estimated that the market may see a phase of demand recovery in September.