Lithium Battery Cell Prices Continue to Fall
Prices for lithium battery cells are dropping further, both for those used in electric mobility and for those employed in fixed storage and consumer electronics. This is revealed by new data from TrendForce, a consulting and analysis platform based in Taipei. According to the company, the price reductions in raw materials, which had been decreasing in previous months, have directly impacted the cell market, with monthly declines ranging from 4% to 6% as of August 2024.
Lithium Battery Cell Prices
In detail, the prices of lithium battery cells for electric vehicles have decreased by approximately 4%, reaching 0.39 CNY/Wh ($0.055/Wh) for square LFP (lithium iron phosphate) cells. In contrast, ternary NMC (nickel-manganese-cobalt) cells and pouch batteries averaged 0.46 CNY/Wh ($0.065/Wh) and 0.48 CNY/Wh ($0.068/Wh), respectively.
The decline is more pronounced in LFP cells for fixed storage systems, which have dropped by 6.4% month-over-month to an average price of 0.35 CNY/Wh ($0.049/Wh).
Raw Materials Market
The recent price drops are linked to the weak performance of battery metal markets, including nickel, cobalt, and lithium, which remained subdued in August. Specifically, spodumene, a major source of lithium, saw a sharp decline with a 16% drop over the quarter. Lithium carbonate, derived from spodumene, brines, and other sources for producing metallic lithium for cathodes, continued its downward trend, hitting a new historic low of 80,000 CNY/ton in August.
“Prices for lithium carbonate have stabilised after hitting a low at the end of August. Although an oversupply of lithium carbonate continues to pressure the Chinese market, the effects of upstream production cuts are gradually becoming evident,” explains TrendForce. “After a period of inventory reduction along the supply chain, demand is expected to improve with the arrival of the traditional peak season (September-October), which may stimulate increased downstream storage activity. This could lead to a modest, short-term rebound in lithium salt prices. However, in the long term, it is unlikely that the lithium oversupply will reverse, and the long-term trend for lithium carbonate prices is expected to remain downward.“
Future Trends
According to the analysis firm, cathode and battery cell manufacturers are revising their production plans upward as downstream demand shows signs of recovery. Specifically, demand for grid-scale storage battery cells continued to improve in August, leading to increased orders for 314 Ah cells. The trend towards higher-capacity cells remains steady, and prices have continued to decline.