[SMM Weekly Review of Power Battery Cell Market 7.3] Low Profit Margin for Power Battery Cells in Passenger Vehicles

Published: Jul 3, 2025 18:00

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[SMM Weekly Review of Power Battery Cell Market] In June, OEMs still focused on destocking, with the production pace of complete vehicles converging MoM. The procurement of power battery cells remained at a just-in-time level.

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Power battery cell prices remained relatively stable this week, with market quotations maintaining previous levels. The weekly average price of 100Ah prismatic LFP battery cells was 0.321 yuan/Wh, while the 174Ah product averaged 0.324 yuan/Wh. Ternary system prices showed limited fluctuations. Most leading battery cell manufacturers have long-term agreements with automakers, implementing raw material price linkage formulas, resulting in stable quotations. Although second-tier manufacturers face shipment and cash flow pressures, overall quotations have not significantly declined, leading the industry into a short-term stalemate of "stable prices but shrinking volumes." Demand side, automakers focused on destocking in June, with vehicle production slowing down MoM, and power battery cell procurement remained at essential levels. Structurally, LFP battery cell demand was relatively stable, primarily driven by A-segment and lower-volume car models, with moderate orders but evident volume discount characteristics, squeezing producer profit margins. Battery cell prices have no further room for reduction, with mainstream quotations hovering near breakeven levels. High-nickel ternary battery cell demand was relatively weaker. These mainly support mid-to-high-end car models, with some products undergoing pre-generation transitions or platform upgrades, leading to reduced production schedules and slower order momentum, resulting in overall lower ternary battery cell shipments. In summary, power battery cell market prices are expected to remain stable in the short term, but weak end-use demand has not substantially improved, with production schedules still prioritizing inventory reduction.

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lv 021-20707875

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Jie Wang 021-51595902

Yang Xu 021-51666760

Lianting Yang 021-51595835

Le Yang 021-51595898

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