EV Battery prices drop 10% in August amidst dampened demand

  • Industry News
  • Sep 12,23
As reported by market research firm TrendForce, the average price drop for cells used in EV batteries reached 10%, underscoring a lackluster growth trend in the EV battery market.
EV Battery prices drop 10% in August amidst dampened demand

Dampened demand for electric vehicles (EVs) has resulted in a 10% decrease in the prices of batteries utilised for both EVs and energy storage during August, as reported by market research firm TrendForce. They anticipate further price declines throughout the year.

This decline in EV battery prices may provide some relief to the industry, which has been grappling with a price war initiated by Tesla in January to stimulate demand.

During the pandemic, prices for battery materials surged to record highs, driven by increased EV demand facilitated by lower borrowing costs. However, prices have been steadily decreasing since then.

If the production of EVs continues to outpace demand, automakers might find themselves in a dilemma: either reducing prices and profit margins or slowing down assembly lines, further affecting the demand for batteries.

The research firm highlighted that the average price drop for cells used in EV batteries reached 10%, underscoring a lackluster growth trend in the EV battery market.

Prices for lithium iron phosphate (LFP) cells, commonly used in affordable EVs and energy storage, have also been on the decline. Although initially developed in the United States, China now dominates global LFP battery production.

Prices for batteries intended for energy storage have also seen a decrease due to weak demand outside of China, leading battery manufacturers to cut back on production in an attempt to stabilise prices.

TrendForce anticipates an inevitable price war in China's storage cell production sector due to overcapacity, with a continued gradual price decline expected for the remainder of the year.

Furthermore, consumer electronics such as smartphones and laptops, which also experienced a drop in demand from their pandemic-induced highs, rely on lithium-ion batteries similar to those used in EVs.

TrendForce noted that battery cell suppliers have been focused on reducing existing inventories due to poor demand for these devices in August.

Source: moneycontrol.com

Related Stories

Heating & Cooling Equipment
ACREX India 2024: Exploring future horizons in HVAC Innovation

ACREX India 2024: Exploring future horizons in HVAC Innovation

Organised by ISHRAE and Informa Markets in India, the premier exhibition takes place from February 15 to 17 at IEML, Greater Noida, Delhi-NCR.

Read more
Electrical & Electronics
Xiaomi urges India for support amid component supplier hesitancy

Xiaomi urges India for support amid component supplier hesitancy

In a letter dated February 6, the company also urges India to consider providing manufacturing incentives and reducing import tariffs for specific smartphone components.

Read more
Automation & Robotics
L&T Technology Services supports Marelli in revolutionizing automotive infotainment

L&T Technology Services supports Marelli in revolutionizing automotive infotainment

Company’s innovative SDV solutions built on AWS & Snapdragon Cockpit Platform from Qualcomm, cuts software development and prototype costs. The groundbreaking solution was showcased at the Consume..

Read more

Related Products

Kusam-meco Thermal Imaging Camera

Electric Power Generation and Related Equipment

Kusam Electrical Industries Ltd offers a wide range of Kusam-Meco” Thermal Imaging Camera - Model TG-305


Read more

Request a Quote

Kusam-meco Industrial Infrared Thermometer

Electric Power Generation and Related Equipment

KUSAM-MECO has introduced a low cost low range Infrared Thermometer model IRL-180. It is suitable for both industrial & Human Body Temperature measurement. It is suitable for use in places wher Read more

Request a Quote

Solar Photovoltaic Street Lighting System

Electric Power Generation and Related Equipment

Freesun Energy offers a wide range of solar photovoltaic street lighting system.

Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back