Electric Vehicle Battery Market Sees Third Price Hike in July

Price for 48V 12AH battery is now RMB 400/set, up RMB 100/set or 33.3% from June’s level, while 48V 20AH battery price is still around RMB 580/mt, RMB 80/mt or 16% higher than June’s price. 

 

The frequent price hikes this year are beyond expectations, as battery prices did not show sharp increase in Q3 last year despite the onset of high demand season, according to sources in the industry. They added that the decline in finished product inventories at battery producers was due mainly to traders replenishing stocks ahead of the increase in ex-works prices and in preparation for the upcoming peak demand season.

 

This is an indication that real battery consumption, albeit stronger than April-May levels, has missed market forecast. Meanwhile, the massive expansion through lead-acid battery industry has resulted in a glut. 

 

SMM believes the possibility of a fallback in battery prices after the seasonal high demand period should not be ruled out given the limited improvement in demand.