Demand Weakened Before the End of the Year, Battery Cell Prices for ESS Remained Stable This Week

This week, ESS battery cell prices remained stable. Cost side, influenced by the rising prices of LFP cathode materials, copper, and aluminum, the cost of ESS battery cells slightly increased. According to SMM calculations, as of last Friday, the theoretical cost of 280Ah battery cells was 0.297 yuan/Wh, and 314Ah battery cells was 0.282 yuan/Wh. Market side, although overseas demand continued to support shipments for some battery cell manufacturers, domestic ESS battery cell demand entered the traditional off-season in Q1, leading to a slight pullback in overall production and sales of ESS battery cells. Currently, ESS battery cell inventory remains at a low level. Against the backdrop of rising costs and weakening market demand, battery cell prices are temporarily stable. Looking ahead, as the market enters the off-season for ESS demand, most battery cell manufacturers are expected to cut production due to changes in demand and holiday factors. Coupled with relatively small short-term cost changes, ESS battery cell prices are expected to remain stable in the short term.