[SMM Analysis] A Review of Recent Tiered Price Trends (2024.1.6-2025.1.9)

SMM January 9 News: This week, waste batteries for cascade utilization (Grade B) continued to decline. Supply side, on the part of battery manufacturers, as the Chinese New Year approaches and the grid connection for ESS has already passed, the production of ESS and power batteries has slowed down, leading to a slight decrease in the output of Grade A and B waste batteries for cascade utilization. Demand side, due to the already limited demand in small power, small ESS, and streetlights, the slight reduction in supply cannot change the overall oversupply situation. Additionally, as the year-end approaches, demand for the aforementioned orders has also decreased. Regarding cascade utilization, older battery cell models are difficult for downstream markets to accept. Considering the rapid iteration in the battery market, blind stockpiling may pose a risk of post-holiday price drops for waste battery cells for cascade utilization. Recycling companies are unwilling to make excessive purchases at this time. In terms of market transactions, although battery manufacturers and pack manufacturers intend to stand firm on quotes for Grade B battery cells for cascade utilization due to their relatively good performance, recycling companies, considering the actual acceptance level of downstream markets and the continuously declining prices of Grade A battery cells, are unwilling to purchase at high prices. As a result, the actual transaction price of Grade B battery cells for cascade utilization has slightly decreased. It is expected that the price of Grade B battery cells for cascade utilization may have further room to decline in the future.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Ying Xu 021-51666707

Yanlin Lü 021-20707875

Yujun Liu 021-20707895

Xiaodan Yu 021-20707870

Zhicheng Zhou 021-51666711

He Zhang 021-20707850