[SMM Analysis] Cost Transmission Difficulties Combined with Sufficient Supply Lead to a Slight Decline in Energy Storage Battery Cell Prices

Last week, energy storage battery cell prices continued to decline. On the cost side, due to previous rebound in lithium carbonate and copper prices, the theoretical battery cell cost increased, but the price transmission limitations resulted in a relatively small cost increase. According to SMM's calculations, as of Nov 22, the theoretical cost of a 280Ah energy storage battery cell was 0.311 yuan/Wh, an increase of 0.2%. On the supply and demand side, energy storage battery cells still face a capacity surplus issue, and the year-end downstream procurement peak has passed. Although some manufacturers are stockpiling, the growth rate of new orders in the market has temporarily slowed. At this stage, it is difficult for costs to be transmitted to the selling price, leading to a continued decline in energy storage battery cell prices in the competition. SMM forecasts that the price of 314Ah battery cells may drop rapidly due to cost advantages and technological maturity, while the price of 280Ah battery cells, having already fallen to a low level, may see a slower decline in the short term due to the progress in large-capacity battery cell technology and the easing of the supply surplus.