[SMM ESS Battery Cell Market Weekly Review 6.23] Production schedule for ESS battery cells remains cautious

This week, prices for 314Ah and 280Ah ESS battery cells saw a slight decline, with low-end prices falling to 0.266 yuan/Wh and 0.272 yuan/Wh respectively, down 0.7% and 0.36% MoM. The main reason is that while first- and second-tier producers maintained full production and sales, the industry's overall capacity was released in a concentrated manner. Although large projects at the terminal end pushed up short-term demand, new orders were still dominated by low-price contracts, with scarce high-price orders, suppressing the upward momentum of prices. The industry as a whole presented a weak balance. On the other hand, the average price of 100Ah battery cells rose to 0.352 yuan/Wh (up 0.28% MoM), mainly driven by the surge in overseas household ESS demand and the rigid constraints on small battery cell capacity: Australia's new household ESS subsidy policy will be launched on July 1, coupled with sustained growth in Europe and emerging markets. Meanwhile, the proportion of 100Ah/50Ah production lines is low, with high switching costs and insufficient capacity utilization rates. Producers lack the motivation to switch production in the short term, and tight supply and demand support price increases. Looking ahead, affected by fluctuations in overseas policies and the unclear progress of domestic industrial and commercial ESS demand release, the SMM survey shows that some enterprises remain cautious about their subsequent production schedules.

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