China’s electric vehicle (EV) market continued its robust growth in November 2024, with rising sales propelling demand for EV batteries. According to industry research from TrendForce, the prices of LFP (Lithium Iron Phosphate) batteries remained stable, while ternary batteries saw a slight price decline due to changing market conditions.
The energy storage systems (ESS) market also experienced strong seasonal demand, particularly for large-capacity batteries, which offer significant cost advantages. However, as year-end orders began to taper off, the average selling price (ASP) for energy storage batteries continued to show a downward trend.
LFP Batteries Maintain Market Dominance in EVs
TrendForce observed that LFP batteries continue to secure a larger share of EV installations, benefiting from their cost-effectiveness and increasing adoption across the industry. While LFP cathode material prices saw a minor rebound in November, this had little impact on the overall cost structure of EV batteries, allowing LFP prices to remain stable.
In contrast, the demand for ternary EV batteries lagged behind LFP batteries, largely due to a decline in demand for higher-cost materials and technologies. As a result, ternary battery prices saw a 2% decrease compared to October, driven by a reduction in the prices of ternary materials.
Energy Storage Systems (ESS) Market Insights
The demand for ESS batteries was primarily driven by China’s year-end push to integrate energy storage systems into the grid, as well as continued strong demand from global grid-scale energy storage projects. Despite a slight uptick in LFP cathode material prices in November, this had little effect on the overall cost of energy storage batteries. Prices for ESS batteries remained relatively stable, with the large-capacity energy storage systems maintaining a strong market position due to their cost-effectiveness.
As year-end approaches, the energy storage battery market is expected to see a continued focus on large-capacity systems, with cost considerations remaining a critical factor in market performance.
Conclusion
The Chinese electric vehicle and energy storage sectors continue to shape global battery demand, with LFP batteries asserting dominance in the EV market. While ternary batteries faced price declines, the energy storage market remained steady due to ongoing demand from both domestic and international grid projects.
TrendForce predicts that LFP batteries will continue to drive both EV and energy storage system adoption, while ternary batteries may face additional pricing pressures as demand for lower-cost technologies persists.
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