[SMM interpretation] the price of electrolyte has risen sharply in the power battery market, but the price of lithium iron phosphate continues to fall.

SMM10 March 9: SMM October 9: recently, with the "gold nine silver ten" effect highlighted, the power battery market continues to pick up, electrolyte prices continue to rise. According to SMM data, the electrolyte (lithium iron phosphate) was 34500 yuan / ton on Sept. 30, up 2500 yuan / ton from the record of SMM in mid-June. However, the price trend of lithium iron phosphate runs counter to the price of electrolyte. According to SMM research, lithium iron phosphate reached 35000 yuan / ton on Sept. 30, down 5750 yuan / ton from the highest point since the beginning of the year and the lowest since 2017.

"Click to view the spot historical price of SMM cobalt lithium

SMM believes that the main reason:

The backside of the upward price of electrolyte is the pick-up in demand for power batteries. September to October is the peak season of the car market, with the strong support of the new energy sales rebound month-on-month and superimposed national policy, the overall trend of the new energy vehicle market is improving, leading to an increase in the demand for power batteries. According to data from the China Automobile Association, the production and sales of new energy vehicles completed 106000 and 109000 respectively in August, up 17.7 per cent and 25.8 per cent respectively over the same period last year. On the other hand, the market shipment of raw material lithium hexafluorophosphate is tight, the price continues to rise, and the demand for downstream iron lithium battery increases, which may lead to the increase of electrolyte price next month.

The decline in the price of lithium iron phosphate is mainly due to the rising price of lithium salt, but the downstream battery companies have strict control over the cost of lithium iron. Coupled with the obvious trend of cost reduction after the technological update of the lithium iron plant, it is expected that the price will continue to fall in the future.