SMM December 31:
Electrolyte prices increased this week, with the average prices for ternary, LFP, and LMO electrolytes at 37,000 yuan/mt, 35,500 yuan/mt, and 28,500 yuan/mt, respectively. Cost side, the tight supply-demand pattern for core raw materials eased, while downstream battery cell enterprises had limited short-term price acceptance, leading to incomplete cost pass-through in the electrolyte industry. Coupled with expectations of weakening future demand, electrolyte enterprises' willingness to purchase raw materials was further suppressed, and prices of some raw materials pulled back. Although the overall cost of electrolytes decreased, it remained at a high level. Notably, previous electrolyte pricing mostly referenced the average raw material prices from the previous month (M-1). Therefore, even though some raw material prices have recently pulled back, current costs remain high compared to previous pricing, supporting the recent rise in electrolyte prices. Demand side, sustained demand boost from the ESS sector provided incremental support. Battery cell production increased slightly in December, further driving up electrolyte demand. Supply side showed a divergent pattern: for enterprises lacking self-supplied raw materials, most orders could not achieve full cost pass-through. Under continuous loss pressure, even with increased demand, they could only maintain original supply scales or even reduce some orders. In contrast, enterprises with self-supplied raw materials further accelerated capacity release pace driven by demand. Overall, industry supply maintained an on-demand matching pace, ensuring stable market supply. Considering the supply-demand pattern and rigid cost support, electrolyte prices are expected to have further room for increase in the short term.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lu Yanlin 021-20707875
Zhou Zhicheng 021-51666711
Xu Mengqi 021-20707868
Hu Xuejie 021-20707858
Chen Bolin 021-51666836
Wang Yizhou 021-51595909
