[SMM Analysis] Analysis of LiPF6 Price Changes in July

In July 2024, the price of lithium carbonate, a core raw material in the battery industry, experienced a sharp drop. Data shows that the price of battery-grade lithium carbonate fell sharply from 90,700 yuan/mt to 80,800 yuan/mt in July, a decline of 10.9%. Meanwhile, the price of industrial-grade lithium carbonate also dropped from 85,850 yuan/mt to 75,850 yuan/mt, a decrease of 11.6%.

The sharp decline in lithium carbonate prices directly led to a reduction in the price of LiPF6. As an important electrolyte material for lithium batteries, the price of LiPF6 also fell from 63,400 yuan/mt to 57,250 yuan/mt in July, a decline of 9.7%.

Due to factors such as the overall economic slowdown, the growth rate of the downstream battery cell industry has slowed, leading to a decrease in demand for lithium carbonate. At the same time, many lithium mining producers worldwide have significantly expanded their capacity in recent years, with new capacities gradually entering the market. This has caused an imbalance between supply and demand and a continuous decline in lithium carbonate prices. As the main raw material for LiPF6, the drop in lithium carbonate prices is bound to affect the price of LiPF6. Additionally, the gradual release of new LiPF6 capacity, coupled with some companies' strategies to expand market share, has further driven down the price of LiPF6.

Since lithium carbonate accounts for a large proportion of the production cost of LiPF6, the sharp drop in lithium carbonate prices has correspondingly reduced the cost of LiPF6, leading to a decrease in its price. Furthermore, with the overcapacity of LiPF6 and relatively weak overall demand in July, the price of LiPF6 fell by 9.7% in July.