Date: 07/11/2023

Auto EV Lithium Ion batteries prices seeing a major fall in 2023

Lithium Ion batteries prices per watthour hovering around $150 from 2021 to 2022. but in the year 2023, due to significant fall in the second quarter, the battery prices are expected to come down. Along with the slow demand, the raw material cost for making lithium ion batteries is also coming down drastically.

Electric vehicle battery prices started falling in the second quarter of 2023 and the fall increased further in the third quarter of 2023. However in the month of October fall is reported to be in the range of stable 2% on the month over month basis.

Based on the figure shared by leading market researcher TrendForce, the price of pouch-ternary type electric vehicle (EV) battery cell in the month of June 2023 was in the price range of CNY 0.78/watthour. The average price for the same type of battery cell in the month of October was listed at CNY 0.61/Wh, a fall of 21% from the June 2023 price. However compared to the price the month of September, it fell only by 2.2%, indicating the fall rate is stablizing.

Here below are the two tables listing the prices of various lithium ion batteries for automotive and consumer electronics in the month of June and October 2023.







Source: TrendForce

TrendForce shared below of its latest findings on this market:

China’s EV battery market is undergoing a period of turbulence due to an overall lack of demand the suppliers focusing on reducing their inventories.
Consumer LCO batteries decreased by 1.3%, and energy storage cells experienced the most significant drop at 3.3%.
The average price of LFP cells dropped to CNY 0.5/Wh, with the lowest prices nearing CNY 0.4/Wh.
The ongoing release of new production capacity and scaling up in the Chinese li-ion battery industry in 2023 is expected to lead to overcapacity extending into 2024 with EV battery prices anticipated to continue their slow decline.

It is also reported the price of lithium, the key material used in these batteries continue to fall through out 2023 and directly causing fall in battery prices.

New Source: TrendForce

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