High Lead Prices Drive Up Costs, Lead-Acid Battery Enterprises Concentrate on Production Cuts and Shutdowns [SMM Lead-Acid Battery Weekly Operation Comment]

        According to reports, the SMM weekly comprehensive operating rate for lead-acid battery enterprises in five provinces was 68.9% from October 24 to October 30, 2025, down 6.46 percentage points WoW.

Since late October, lead prices surged significantly, raising production costs for lead-acid battery enterprises. However, end-use consumption in markets such as e-bikes and automobiles remained limited, preventing battery cost increases from being passed downstream. To avoid accumulating high-cost inventory, some enterprises began equipment maintenance or implemented direct production cuts this week, primarily medium to large firms, which notably dragged down the weekly operating rate for lead-acid battery enterprises. This concentrated period of production cuts and maintenance is expected to last from late October to early November, ranging from 2–3 days to 5–7 days for most enterprises. It is anticipated that maintenance or production cuts will conclude next week, leading to a rebound in the operating rate.