Summary
In Q1 2025, the global lithium-ion battery price landscape stabilized as power battery declines narrowed to 5-10% YoY and energy storage cell prices dropped 28.6% (slower than 2024). This balance reflects shifting dynamics: falling lithium carbonate costs (-0.1% MoM) versus surging cobalt prices (+25% MoM), alongside robust demand from NEVs (+12-26% sales growth) and energy storage installations (+100% YoY). Silicon anode and solid-state battery breakthroughs signal long-term cost reductions, while short-term stability hinges on lithium inventory trends and industry consolidation.
Lithium-ion Battery Price Dynamics: Q1 2025 vs. Q1 2024
2025 Q1 Lithium-ion Battery Price Trends Overview
Power battery prices approached December 2024 levels, with YoY declines narrowing to 5%-10% in Q1 2025. Energy storage cells (e.g., 280Ah) dropped 28.6% YoY—a slower pace than 2024's steep declines—due to rising cobalt costs and improved supply-demand balance.
Raw Material Cost Fluctuations Impacting Prices
As of March 17, 2025:
Battery-grade lithium carbonate: ¥74,900/ton (-0.1% MoM)
Lithium hydroxide: ¥64,200/ton (slight decline)
Electrolytic cobalt: ¥247,500/ton (+25% MoM), driving cathode material price hikes
Critical Factors Shaping 2025 Lithium-ion Battery Prices
Raw Material Cost Volatility
Anode materials (petroleum coke, needle coke) saw 30%-70% YoY price increases, offsetting cathode material cost relief from low lithium carbonate prices.
Lithium supply-demand balance: Oversupply expectations pressured prices, but reduced low-grade ore production and enterprise resource integration may stabilize long-term markets.
Supply-Demand Adjustments in the Lithium-ion Battery Market
Demand growth:
NEV sales surged 12%-26% YoY (domestic policy stimulus + European recovery)
Energy storage installations rose >100% YoY, boosting battery demand
Supply-side changes:
Slower capacity expansion (e.g., CATL's fixed asset growth turned negative)
LFP segment capacity utilization hit 80%, alleviating short-term imbalances
Technological Innovations and Industry Strategies
Next-gen battery technologies:
CAS improved LTO anodes via high-pressure tech, enabling faster charging
Tsinghua's silicon-based nanocomposite anodes (40% higher energy density) enter pilot testing
Corporate milestones:
CATL unveiled 450 Wh/kg all-solid-state battery prototype (targeting 2026 EV integration)
BYD's sulfide solid electrolyte cuts costs by 30%
Lithium-ion Battery Price Forecasts: Short-Term Stability vs. Long-Term Opportunities
Short-Term Projections (Q2-Q3 2025)
Power batteries: Stabilize amid 55% NEV penetration
Energy storage systems: Drop to ¥0.25/Wh in H2 due to 314Ah cell dominance and peak installations
Long-Term Outlook (2026+)
Prices may stabilize within ¥65,000-90,000/ton lithium carbonate range, with industry consolidation reducing volatility. Breakthroughs in silicon anodes and solid-state tech could drive 20%-30% cost reductions by 2030.
Source:CCM
More information can be found at CCM li-ion batteries price China Monthly Report.
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