Schedule a Call Back
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.
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
electric vehicle batteries
battery price drop
EV demand
energy storage
price war
Tesla
lithium iron phosphate
battery materials
global production
China
consumer electronics
smartphone batteries
laptop batteries
TrendForce
market research firm
Related Stories
Electrical & Electronics
Electronics sector to create 12 million jobs, but skill gap remains: Report
India's domestic electronics production reached $101 billion in FY23, with mobile phones accounting for 43%, followed by consumer electronics, industrial electronics, and auto electronics.
Read moreProcess Equipment
Trump 2.0 may boost Indian pharma opportunities
Experts highlight that higher tariffs on Chinese goods might enable Indian firms to fill supply gaps in the US generic drug market, a critical region that accounts for 30% of Indian pharma sales and..
Read moreProcess Equipment
India levies anti-dumping duty on chemical imports from China, Korea & Thailand
The decision follows a recommendation by the Directorate General of Trade Remedies (DGTR) under the Commerce Ministry, which found that Epichlorohydrin was being sold in India below standard prices ..
Read moreRelated 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
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
Solar Photovoltaic Street Lighting System
Electric Power Generation and Related Equipment
Freesun Energy offers a wide range of solar photovoltaic street lighting system.
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
