Electric vehicle (EV) battery prices in China have continued their downward trend in July, driven by falling battery material costs, according to a report from market research firm TrendForce.
The report reveals that while demand for power batteries in China remained stable, the prices of key battery materials, including cathode materials and metals such as cobalt, nickel, and particularly copper, continued to decline. This has led to a slight reduction in battery cell prices.
In July, the average price of square ternary cells was RMB 0.48 ($0.0672) per watt-hour (Wh), a decrease of 2.1 percent from June. Square lithium iron phosphate (LFP) cells averaged RMB 0.41 per Wh, down 2.6 percent from the previous month. The average price of soft pack ternary cells fell to RMB 0.5 per Wh, a reduction of 2 percent.
Energy storage battery cells experienced a more significant price drop, attributed to lower demand and reduced raw material costs. The average price of square LFP cells for energy storage was RMB 0.38 per Wh in July, reflecting a 9.2 percent decline from June. The average price of high-capacity LFP energy storage cells also fell to around RMB 0.38 per Wh, down 9 percent from June.
TrendForce reported a decrease in orders and production of energy storage cells in July. The drop in prices for cathode materials, electrolytes, and copper foil has further pressured the energy storage battery market. The ongoing oversupply of lithium carbonate in China has contributed to a decline in its price, which fell to approximately RMB 80,000 per ton by the end of July.
The report indicates that despite the continued downward trend in lithium prices, the rate of decline may slow down. Additionally, Chinese battery makers increased their inventories in late July in anticipation of tariff hikes in overseas markets, which is expected to boost orders from the industry chain in August.
