[SMM ESS Battery Cell Market Weekly Review 7.1] Small ESS market shifts from tight supply-demand to supply-demand balance

This week, the prices of ESS battery cells remained stable, with no significant fluctuations observed in the price ranges of 314Ah and 280Ah high-capacity battery cells. On the cost side, there was continued upward pressure, primarily driven by the sustained increase in LFP material prices, while the prices of other key materials remained stable. Although there was a slight rebound in the price of coke, a raw material for anodes, this had not yet been passed on to the artificial graphite sector. If LFP prices strengthen further in the future, it may trigger a price transmission mechanism for battery cells. In terms of supply and demand, the prosperous situation seen in June continued: first- and second-tier producers had already scheduled their production orders up to August. The undersupply situation prompted some enterprises to tentatively raise their spot order quotes, and the spillover effect of orders simultaneously drove a significant increase in order volumes for small and medium-sized producers. For small-capacity battery cells, the pressure from previous structural shortages of 50Ah and 100Ah specifications eased as the capacity of newly built and upgraded production lines gradually came online, and prices stabilized. The Australian, European, and Central African markets continued to be the core demand drivers for small-capacity ESS. Looking ahead, small-capacity ESS battery cells are entering a phase of rebalancing supply and demand, and their price fluctuations have become significantly more sensitive to overseas household ESS subsidy policies and the pace of capacity ramp-up.

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

Li Yisha 021-51666730