In September, China's power battery cell production was up 8% MoM and up 40% YoY. Since August, the trade-in and vehicle scrappage subsidy policies have been intensified, and the overall car sales have been boosted by the intensive launch of new cars by car makers and the autumn auto shows, leading to a new high in car sales in September. During the National Day Golden Week, NEV orders continued to rise, and subsequent sales are expected to maintain a growth trend, which is likely to drive the continuous increase in power battery sales. However, the current price war in the car market is still ongoing, and transaction prices are showing a downward trend. It is expected that the cost-effective LFP battery cells will continue to encroach on the market share of ternary battery cells, with growth rates consistently faster than those of ternary battery cells.
The production schedule of China's power battery cells in October is expected to be up 6% MoM, with LFP battery cells accounting for 64% and ternary battery cells accounting for 36%.
