SMM December 11 News:
Electrolyte prices increased this week, with the average prices for ternary (for NEV), LFP, and LMO electrolytes at 36,750 yuan/mt, 35,250 yuan/mt, and 28,250 yuan/mt, respectively. Cost side, although the price increases of core raw materials such as LiPF6 and VC slowed down recently, they still fluctuated at highs, leading to significant cost pressure on electrolyte enterprises, which gradually raised price increase requests to downstream battery cell manufacturers. However, considering that battery cell enterprises themselves face pricing pressure from end-users, their acceptance and ability to digest substantial price increases passed on from the raw material side are limited, making it difficult to fully absorb the cost increments in the short term. Against this backdrop, electrolyte and battery cell enterprises negotiated prices to achieve partial cost transfer, driving up electrolyte market prices. Demand side, battery cell manufacturers maintained a steady production pace this month, with output levels remaining high and no significant reductions observed, continuing to provide strong support for electrolyte and upstream raw material demand. Supply side, although some order costs were difficult to fully pass downstream, reducing production enthusiasm among electrolyte enterprises, they still adopted a "produce based on sales" approach. Considering the supply-demand pattern and cost-side pressure, further upside room for electrolyte prices is expected.
SMM New Energy Research Team
Wang Cong 021-5166-6838
Ma Rui 021-5159-5780
Feng Disheng 021-5166-6714
Lü Yanlin 021-2070-7875
Zhou Zhicheng 021-5166-6711
Xu Mengqi 021-2070-7868
Hu Xuejie 021-2070-7858
Chen Bolin 021-5166-6836
Wang Yizhou 021-5159-5909
