Latest Update in the SMM Lithium Battery Cathode Precursor and Material Market

On February 24, 2025, the Democratic Republic of Congo (DRC), the world's largest cobalt supplier, announced a four-month suspension of cobalt exports to address the persistent decline in cobalt prices due to oversupply in the international market. The policy took effect on February 22 and is scheduled for a three-month review to assess its impact and decide on potential adjustments. Since its announcement, this policy has garnered worldwide attention and ignited enthusiasm in the cobalt product market. According to SMM prices, as of March 14, the prices of all cobalt products have seen significant increases. Specifically, the cumulative price increase for cobalt sulfate, cobalt chloride, and cobalt intermediates has exceeded 80%. Why Did This Ban Attract So Much Attention? .....

LiPF6 production down month - on - month

Rho Motion, the leading EV research house, today revealed that the number of electric vehicles sold globally in February 2025 is 1.2 million. The EV market grew by almost 50% compared to February 2024, but fell by 3% compared to January 2025.

The Chinese IPO market saw a stark slowdown in 2024 as the securities regulator increased the red tape around listing. This, combined with the Hong Kong Exchange (HKEx) recently easing rules for Chinese companies to hold dual listings there, has led many Chinese players to look to the market to raise funds. This is notable for companies operating within the electric vehicle (EV) and battery space.

The BESS market is the fastest growing battery demand market globally, increasing 53% year on year in 2024 according to Rho Motion’s BESS database.

This week, the prices of 280Ah and 100Ah ESS battery cells increased, while the prices of 314Ah and 50Ah ESS battery cells remained stable. The main reason was the rise in prices of key materials such as graphite anode and copper-aluminum, leading to a short-term increase in ESS battery cell costs, though the growth was relatively small. According to SMM's calculations, as of last Friday, the theoretical cost of 280Ah battery cells was 0.30 yuan/Wh, while that of 314Ah battery cells was 0.284 yuan/Wh. This week, the prices of 280Ah and 100Ah ESS battery cells saw a slight rebound in the short term due to the depletion of low-cost inventory before the holiday. Meanwhile, the prices of 314Ah and 50Ah ESS battery cells remained stable as market supply and demand were balanced, with minimal short-term cost fluctuations. Looking ahead, ESS battery cell market demand is expected to gradually rebound from late Q1 to early Q2. However, as battery cell cost fluctuations are limited and the capacity transition for 314Ah ESS battery cells is gradually completed, product supply will remain sufficient, and the price of 314Ah battery cells is expected to stay stable. At the same time, after price adjustments, the prices of 280Ah and 100Ah battery cells are also expected to remain stable.

China’s annual Two Sessions meeting has concluded outlining the economic goals and policy directions for the year in the world’s second largest economy. The meetings put a strong emphasis on future technologies, financial stability and consumer driven demand growth, with China seeking to further improve its positioning on the world stage. The meeting also gave insights into the thoughts of major EV & battery company leaders.

As of February 2025, ESS battery inventory increased by approximately 4% MoM, with the inventory-to-sales ratio rising to 1.83 months. Affected by the off-season in the ESS industry and the Chinese New Year holiday, the production and sales of ESS battery cells pulled back this month. However, due to enterprises clearing inventory at low prices at the end of 2024, the overall industry inventory remained low. Meanwhile, some producers, with clear subsequent orders, began stockpiling in advance, leading to a slight increase in inventory volume and the inventory-to-sales ratio this month. Looking ahead, ESS industry inventory is expected to fluctuate within a reasonable range of 1.5-2 months. With the gradual recovery of ESS industry demand by the end of Q1 and the beginning of Q2, ESS battery cell inventory levels may show a downward trend.