China energy storage battery cell production fell in December amid shrinking demand, decline to extend into January

December 2023 saw China's energy storage battery cell production at 11.08 GWh, down 14% MoM and 45% YoY, as the industry cut production to lower inventories.
December's energy storage market saw no major recovery, with slow inventory reduction and persistent pressure at cell factories. January's energy storage battery cell production is set to fall further to 9.81 GWh, down 11% MoM.
December's end-of-year domestic energy storage installation rush shifted to project commissioning and grid connection, past peak demand, reducing shipments. Internationally, Red Sea turmoil affected demand, extending Europe-bound shipments via the Cape of Good Hope by about a month. In anticipation, some integrators pre-stocked modestly, but with minimal overall demand impact. Q1 is typically slow for energy storage, and may be more quiet than usual in January 2024. Manufacturers keep cutting production and inventory amid low demand; high inventory pressures led some smaller factories to voluntarily stop production.