SMM Analysis: Growing Power Bank Market Bucks Trend, Potentially Gives LMO A Chance

LMO cathode materials market is moderate, swayed by lithium carbonate price volatility and weak end-user demand. The consumer electronics market, LMO's largest demand source this year, showed limited growth recently. Even the upcoming Singles’ Day online shopping festival (Nov 11) has offered limited boost to the consumer electronics market.

However, the power bank segment seems to be bucking the trend. Market reports highlight "notable sales growth of power bank chips for a listed company," "power bank chip shortage," "extended power bank chip delivery," "power bank factory production recovery," and "high-end power bank models priced at a thousand yuan surpassing 300,000 in sales."

Slowed growth in the new energy vehicle sector impacts the power battery market, causing a decline in lithium battery raw materials and continuous battery cell price drops. With accelerating lithium price decreases, the power bank industry finds a cost reduction opportunity.

Battery cell price decline is due to falling lithium carbonate prices and oversupply. The power bank market surge helps upstream lithium battery producers with inventory issues. Although a single power bank uses limited amounts of battery cells, the large consumer market contributes significantly. With one 10,000mAh power bank requires 36Wh of battery cells, 100 million power banks consume 3.6 billion Wh of battery cells. Even excluding light energy storage and outdoor power supplies, the power bank market can annually consume tens of billions of Wh battery cells.