Relatively Small Cost Increase; ESS Battery Cell Prices Remained Stable This Week

This week, ESS battery cell prices remained stable. On the cost side, due to price adjustments of materials such as LFP cathodes, the cost of ESS battery cells rose slightly. According to SMM calculations, as of last Friday, the theoretical cost of 280Ah battery cells was 0.295 yuan/Wh, while that of 314Ah battery cells was 0.28 yuan/Wh. On the market side, the rush for domestic grid connection projects ended at the end of 2024, leading to a decline in battery cell procurement enthusiasm at the beginning of the year. Meanwhile, battery cell manufacturers had previously cleared inventory through low-price strategies, resulting in both inventory and market prices being at relatively low levels. Despite the slight increase in battery cell costs, selling prices have temporarily remained stable. Looking ahead, as the market enters the off-season for ESS demand in Q1, most battery cell manufacturers are opting for production cuts due to changes in demand and holiday factors. Coupled with relatively small short-term changes in battery cell costs, ESS battery cell prices are expected to remain stable in the short term.