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

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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.

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