This week, the price of electrolyte remained stable. In the short term, it is expected to remain stable or even rise slightly due to cost support. [SMM Weekly Review of Lithium Electrolyte Market]

SMM reported on July 24:

This week, the prices of electrolytes remained stable. The average prices of electrolytes for ternary power batteries, LFP batteries, and LMO batteries were 21,650 yuan/mt, 17,700 yuan/mt, and 14,400 yuan/mt, respectively. On the cost side, the prices of LiPF6, a core raw material for electrolytes, and solvents rose due to the increase in their raw material prices, while the prices of additives remained relatively stable, leading to an overall increase in the manufacturing cost of electrolytes. However, this increase had not yet been passed on to the prices of electrolytes. On the demand side, the NEV market was affected by inventory pressure at the terminal level, resulting in a conservative production pace. This trend was transmitted to the upstream power battery sector, leading to a slight MoM decline in the demand for power batteries. In the ESS market, overseas ESS demand continued to grow, effectively supplementing the demand for batteries. Overall, battery demand showed a slight increase. On the supply side, electrolyte enterprises continued to operate under the "produce based on sales" model. Despite the continuous low prices in the electrolyte market, due to the industry's structural overcapacity, some enterprises still adopted the "volume discount" strategy. Based on a comprehensive assessment of multiple factors, it is difficult to reverse the oversupply situation in the electrolyte market in the short term, and there is a lack of significant upward momentum for prices to rebound. However, with the increase in raw material prices, the downward price trend has ceased, and it is expected that the prices in the subsequent electrolyte market will remain stable or even rise slightly.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875

Zhou Zhicheng 021-51666711

Xu Mengqi 021-20707868

Hu Xuejie 021-20707858