SMM analysis: September saw a gradual increase in NEV and energy storage demand, with battery cell production up 8% MoM

Published: Oct 16, 2024 09:48

Source: SMM

Save

In September 2024, China's battery cell production was 126.8 GWh, up 8% MoM, up 48% YoY.

In September 2024, China's battery cell production was 126.8 GWh, up 8% MoM, up 48% YoY.
By material, China's ternary battery production was 33.97 GWh, up 3% MoM, up 40% YoY, with a cumulative YoY increase of 30%. Meanwhile, LFP battery cell production reached 87.10 GWh, up 10% MoM, up 56% YoY, with a cumulative YoY increase of 31%. SMM expects China's battery cell production in October 2024 to be 133.4 GWh, up 5% MoM, up 60% YoY.
Demand side, by market:
1) NEV market: Since August, policies on car trade-ins and car retirement subsidies have intensified, along with the launch of new cars by car makers and autumn auto shows, boosting overall car sales and driving September car sales to new highs. During the Golden Week, NEV orders continued to rise, with future sales expected to grow, potentially boosting power battery sales. However, the car market price war continues, with transaction prices showing a downward trend. LFP battery cells, with higher cost performance, are expected to continue gaining market share from ternary battery cells, with growth faster than ternary cells.
2) Energy storage sector: In September, energy storage battery cell production and sales continued to grow. In terms of orders, due to some energy storage projects approaching grid connection periods, domestic demand for energy storage battery cells increased; at the same time, overseas demand for industrial and commercial energy storage gradually grew, driving a recovery in global energy storage battery cell demand in September. Regarding energy storage battery cell production, due to the actual order recovery in September and optimism about traditional grid connection periods in the fourth quarter, this month's energy storage battery cell production continued to grow, with stockpiling for the upcoming peak season.
Future expectations: From the cyclical perspective of the energy storage industry, the end of the year is a rush installation period for domestic energy storage projects, with the concentrated procurement period for energy storage battery cells in early Q4, expected to drive energy storage battery cell production and sales to peak during this phase. The NEV sector is similar, with the end of the year being the traditional sales peak for NEVs, with power battery cell sales expected to reach a peak around November, after which sales will begin to decline. Currently, power battery cell production is scheduled based on sales planning to maintain inventory levels within a safe range, and production is expected to continue rising driven by orders.

Output

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

22 hours ago

Beijing Launches 500-kV Power Project in Fengtai, Boosting Grid Resilience and Industrial Growth

On January 28th, the construction of the 500-kilovolt power transmission and transformation project in Fengtai, Beijing officially started. This project is the first newly-built 500-kilovolt power grid project in Beijing during the 15th Five-Year Plan period. It will significantly enhance the resilience and power receiving capacity of the southern Beijing power grid and provide reliable power support for Beijing to continuously optimize the investment structure and vigorously develop high-end, precise, and cutting-edge industries. The 500-kilovolt power transmission and transformation project in Fengtai, Beijing is a key project of Beijing's power grid during the 15th Five-Year Plan period and one of the "3 100" key projects in Beijing this year. It is constructed and managed by the State

22 hours ago

Shaanxi-Anhui UHV DC Project's 500-kV AC System at Hezhou Station Begins Operation After Trial Run

On February 1st, the 500-kilovolt AC system of the Hezhou Converter Station, the receiving-end station of the ±800-kilovolt UHV DC power transmission project from northern Shaanxi to Anhui, was officially put into operation after a 24-hour trial run.

22 hours ago

750-kV Power Line Connecting Northern to Central Shaanxi Fully Operational

On February 2nd, the 750-kilovolt power transmission and transformation project of the third passageway from northern Shaanxi to central Shaanxi was fully connected. The project starts from the 750-kilovolt Shuofang Substation in Shenmu City in the north and ends at the 750-kilovolt Bailuyuan Substation in Lantian County in the south. It has newly built a 1,271-kilometer line, passing through 18 counties (districts) in 4 cities including Yulin, Yan'an, Weinan and Xi'an.

22 hours ago