[SMM Analysis] Fierce Competition in Lithium Battery Separator Market, Peak Season Stocking Stimulates Output Increase

In July 2024, China's lithium battery separator output reached 1.68 billion square meters, up 2% MoM and 27% YoY. Among them, the output of wet-process separators reached 1.299 billion square meters, up 4% MoM and 39% YoY. In contrast, the output of dry-process separators was only 381 million square meters, down 3% MoM and flat YoY.

Supply side, the current lithium battery separator market still maintains production on demand, and the output in August is expected to continue to rise compared to July. Demand side, energy storage companies have strong expectations for increased production, and the demand for products iteration drives the demand for lithium battery separators; NEV battery separator companies are steadily increasing output, with some output growth for peak season stocking. Cost side, many separator producers still have cost advantages due to economies of scale, leaving room for cost reduction. Additionally, the recent market price war remains severe, with third- and fourth-tier manufacturers choosing low-price strategies to capture market share due to their own profit models. It is expected that the market price of lithium battery separators will continue to have some downward space, and the market will continue to operate weakly in the future.