China’s power battery prices are on track to decline in the coming months primarily due to the declining costs of lithium, market research firm TrendForce forecasts.
Power batteries to see lower costs in Q3 2024
As per the report, battery cell prices will continue to drop at the beginning of the year’s third quarter due to an oversupply of lithium carbonate. Consequently, this surplus lowers the power battery cell prices.
However, TrendForce expects prices to stabilize during the peak season by the end of the same quarter.
Lithium carbonate costs hit new low in China
The price of lithium carbonate in the Chinese market hit a new record low in 2024 amid the increasing oversupply.
According to TrendForce’s July 8 report, lithium carbonate prices dropped from over RMB 100,000 ($13,750) per ton to approximately RMB 90,000 last month.
“Battery costs have fallen in line with declining raw material prices, leading to a sustained decrease in EV battery cell prices.”
TrendForce
TrendForce’s study also revealed that electric vehicle battery prices dropped by 1%-2% in June 2024 compared to the prior month.
The monthly average selling price (ASP) for square ternary, square LFP, and pouch ternary EV battery cells in June 2024 were RMB 0.49/Wh, RMB 0.42/Wh, and RMB 0.51/Wh, respectively. These prices represent month-on-month declines of 2.2%, 2.6%, and 1.2%, accordingly.
On the other hand, the ASP of LFP battery cells for energy storage dropped 4.2% MoM to RMB 0.41/Wh in June. The report also mentioned that the peak period for intense purchasing in the middle of the year has ended. In this sense, orders for energy storage batteries are beginning to fall.
Presented below are the li-ion battery product prices in China in June 2024:
| Model | Type | Application | Average Price | Price Change in June |
| NMC 523 Square ternary | Battery cell | EV | 0.49/Wh | -2.20% |
| Square LFP | Battery cell | EV | 0.42/Wh | -2.60% |
| NMC 523 Pouch ternary | Battery cell | EV | 0.51/Wh | -1.20% |
| Square LFP | Battery cell | ESS | 0.41/Wh | -4.20% |
| LCO | Battery cell | Consumer electronics | 5.91/Ah | -0.50% |
Benefits to customers
With battery makers battling for market share through aggressive pricing, electric vehicle and energy storage customers may access lower-cost products.
The notable decline in battery prices can substantially boost the adoption of clean energy technologies, especially in mobility and energy storage systems.
It may also propel battery makers to continuously innovate their products and explore alternative materials to further drive down costs. All that said, lower prices make battery products more accessible to a wide range of buyers.
