Terminal Demand Picked Up Obviously, and Output of Battery Cell Increases 56% in May

SHANGHAI, Jun 15 (SMM) - In May 2023, battery cell output in China was 60.8Gwh, up 56% from the previous month and 57% from the same period last year. In terms of material types, the output of ternary cathode battery in China was 17.2Gwh, an increase of 35% month-on-month and 2% year-on-year, while the output of LFP battery was 43.6Gwh, an increase of 66% month-on-month and 99% year-on-year. From the perspective of the supply side, since in mid to late-April, with the gradual rise in the prices of lithium salt, the battery cell enterprises were more willing to purchase and produced actively. Among them, the operating rates of some energy storage battery companies recovered to more than 60%.

On the demand side, as the implementation date of the National VI B policy is gradually approaching, the approval of the postponement of the sales of non-RDE models has led to the weakening pressure on inventory, hence the external pressure on the sales of new energy vehicles has eased. In addition, as car companies carried out promotions actively during Labour Day holiday, the demand for battery cells in the downstream power market rose. Approaching the end of June, the energy storage enterprises will increase production and some downstream integrators received more orders, which jointly promote the upward demand for batteries. The battery cell output in June is expected to stand at 73.3Gwh, up 21% from the previous month and 61% from the same period last year.

In May 2023, the prices of battery cells stabilised after falling. In May 2023, on the raw material side, the prices of some key main materials of batteries stopped falling and rebounded. Among them, the prices of industrial and battery-grade lithium carbonate rose 53% and 33.8% respectively compared with April, and the price of battery cells stabilised after the raw material cost fell at the beginning of the month. As terminal demand recovered and the prices of lithium salts increased, the market had a certain bullish attitude towards the prices of battery cells, especially the energy storage battery cells. Therefore, it is expected that the prices of battery cell may rise.