In February, the Inventory Level of ESS Battery Cells Slightly Increased, but May Decrease with Subsequent Demand Growth.

As of February 2025, ESS battery inventory increased by approximately 4% MoM, with the inventory-to-sales ratio rising to 1.83 months. Affected by the off-season in the ESS industry and the Chinese New Year holiday, the production and sales of ESS battery cells pulled back this month. However, due to enterprises clearing inventory at low prices at the end of 2024, the overall industry inventory remained low. Meanwhile, some producers, with clear subsequent orders, began stockpiling in advance, leading to a slight increase in inventory volume and the inventory-to-sales ratio this month. Looking ahead, ESS industry inventory is expected to fluctuate within a reasonable range of 1.5-2 months. With the gradual recovery of ESS industry demand by the end of Q1 and the beginning of Q2, ESS battery cell inventory levels may show a downward trend.