China Li-ion Battery E-News(China Li-ion Battery E-News 201703)

In March 2017, the price of Li-ion battery core increased slightly. Notably, as for power battery, there was a slowdown in the growing demand for its downsteam product, namely alternative energy vehicles (AEVs). Insiders revealed that a decrease in the subsidy for AEV enterprises directly hurt the sales of AEVs. It is expected that the uptrend in AEV sales will slow down in 2017. In addition, with electric bus reaching its saturation point, there is an increasing demand for electric passenger vehicles in the future.

- Cathode material: The unsatisfactory sales of ternary material led to a decrease in its price. However, given the continuously high price of lithium cobaltate (LCO) and a substitution of ternary material for LCO in some fields, the demand for ternary material is expected to increase. In terms of raw materials, the uptrend in cobalt salt price slowed down because its price was beyond Li-ion battery manufacturers’ acceptance. Owing to the demand-driven acquisition, the price of lithium carbonate fluctuated slightly, with it going down in some provinces or cities.

- Anode material: Price stability occurred with a steady demand. The output of anode material is going up, as the demand for power Li-ion battery grows.

- Separator: The current competition among Chinese producers of low-end dry processed separators is very fierce. Most of these enterprises aim to attract more clients with lower prices, which results in their lower profit margins. The supply of wet processed separators is relatively limited, and thus its price remains high.

- Electrolyte: With the increasing capacity of lithium salt and a downtrend in its price, the price of electrolyte began to drop. According to a domestic electrolyte producer, the price of lithium salt is certain to go down, and the electrolyte price will drop accordingly. Besides, currently the supply of electrolyte exceeds its demand, and thus the competition among electrolyte producers is fierce.

The USD/RMB exchange rate in this newsletter is USD1.00=RMB6.8798 on 1 March, 2017, sourced from the People's Bank of China. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.

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