The crucial inputs for manufacturing Batteries continue to fall in June, largely due to excess supply and stabilization of demand.
On June 30, prices for lithium carbonate closed with an average of RBM 91.500/W, which represents a drop of 13,7% compared to the previous month. The concentrate of lithium spodumene Chinese closed with an average of USD 1.045/MT, reduction of 4,2%.
According to InfoLink Consulting, lithium production in China remained high, while growing demand for batteries in the automotive market stabilized. “Lithium prices continued to fall below break-even. Consequently, manufacturers may plan production cuts or even stoppages, reducing supply. However, given the persistent oversupply, lithium prices may see slight recoveries amid fluctuations, but remain in the low price range”, assessed the consultancy.
Storage Cell
Prices for LFP energy storage cells in China are below break-even, but further declines are unlikely. On June 30, the price of 280 Ah LFP cells remained at an average of RMB 0,35/Wh, the same level as in May.
According to InfoLink, Most manufacturers have produced cells above 300 Ah, especially 314 Ah. The price of 314 Ah storage cells remained at an average of RMB 0,36/Wh, down 2,7% month-on-month, narrowing the price gap for 280 Ah cells.
“In the future, the production cost of 314 Ah cells will probably be below that of 280 Ah cells amid mass production and expansion of shipments”, analyzes the consultancy.
Cell prices 100 Ah LFP continued to decline amid slow shipments, averaging RMB 0,38/Wh, a 3,8% decrease from the previous month.
There is a transition movement towards cells with large storage capacity. Energy storage tenders already require 314 Ah cells. “In the second half of 2024, 314 Ah LFP energy storage cells will likely see increasing shipments,” highlights InfoLink.
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