[SMM ESS Battery Cell Market Weekly Review] Short-term Demand Remains Resilient

This week, the overall ESS battery cell market remained stable. Benefiting from the concentrated grid connection rush before the withdrawal of the "mandatory energy storage allocation" policy, projects in multiple regions accelerated their implementation, driving the shipment of ESS battery cells. Demand side, ESS projects on the power grid side and the industrial and commercial side continued to demonstrate resilience. Local subsidies and pilot power trading mechanisms were introduced in first-tier provinces, stimulating the release of new demand. However, as the marginal impact of policy-driven factors weakens, the market is gradually returning its focus to the quality of project implementation and profitability models. It is expected that the market will enter a short-term adjustment period following the "installation rush" in the mid-to-late Q2, with prices potentially facing mild downward pressure. The industry is entering a critical stage of transitioning from policy-driven to market-oriented growth. Meanwhile, the US has reduced reciprocal tariffs to 10% (with an additional 24% to be imposed after three months), providing favorable conditions for the export of Chinese ESS battery cell products to the US. This is expected to drive short-term export growth. Overall, the ESS battery cell market is showing a steady development momentum, driven by both policy support and improvements in the international trade environment.

SMM New Energy Industry Research Department

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875

Zhou Zhicheng 021-51666711

Zhang Haohan 021-51666752

Wang Zihan 021-51666914

Wang Jie 021-51595902

Xu Yang 021-51666760

Chen Bolin 021-51666836

Yang Le 021-51595898