[SMM Weekly Review of Power Battery Cell Market 6.19] Slowdown in Vehicle Production Rhythm

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This week, the overall market prices of power battery cells remained stable, but there was a divergence in the performance of ternary and LFP battery cells. Affected by the reduction in production schedules for some high-end car models, the demand for ternary battery cells declined, and shipments slowed down. With automakers reducing procurement volumes, battery cell producers, in order to secure orders, faced downward price expectations and intensified competition. LFP battery cells, due to the continued procurement volumes from mainstream economy car models, maintained relatively stable demand, with prices fluctuating slightly at low levels and remaining stable for the time being. However, if the production of complete vehicles continues to slow down, the prices of LFP battery cells may also come under pressure in the future. On the cost side, the prices of core raw materials such as lithium carbonate remained low, resulting in lower production costs for battery cells, but there was limited room for further price reductions. The current changes in battery cell prices are mainly driven by adjustments in demand and inventory pressure. Terminal complete vehicle enterprises are still digesting inventories, with cautious procurement and scattered orders. Leading battery cell enterprises prioritize securing supply for core customers, maintaining stable production; while small and medium-sized battery cell producers may reduce prices to seize market share due to insufficient orders. Against the backdrop of price wars among automakers, it is expected that battery cell prices will continue to fluctuate at low levels, and market competition will become increasingly fierce.

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