Record Low Motive Battery Price Dampens China Lead-Acid Battery Production

SHANGHAI, Nov. 5 (SMM) – Heightened price war in China’s motive lead-acid battery market resulted in disruptions of motive battery production, driving down operating rate at China’s lead-acid battery producers in September, SMM’s latest survey indicates.

SMM surveyed 91 major Chinese lead-acid battery producers and found that their average operating rate fell 0.63 percentage point on the month to 53.30% in September.

The prices of 48V 12Ah and 48V 20Ah motive batteries hit new lows of 248 yuan/set and 468 yuan/set, respectively, in September. Prices of leading battery brands were on par with those of inferior brands. As a result, small and medium-size motive battery producers suffered poor sales and bigger losses, and thus curtailed or halted production.

Although the use of electric tricycles and quadricycles is gaining momentum in small cities and suburbs, production of motive batteries for these vehicles is still limited in scale. The operating rate at motive battery producers fell to 41.9% in September, down from August’s 44.16%.

The average operating rate at ignition battery producers rose 1.12 percentage points from August to 54% in September, as growing automobile output boosted demand for ignition batteries.

Stable orders helped backup battery producers hold operating rate flat at 67% during the same month. SMM believes that favorable government policies and the recovering photovoltaic industry may encourage some backup battery producers to expand production.

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