Battery Prices

Pouch-type ternary power battery cells saw the biggest drop, falling 7.3 percent to $0.51 per Wh in January, TrendForce said.

The price war for power batteries is intensifying, with the world's two largest battery makers reportedly pushing battery costs down further.

As demand in the power and energy storage battery markets cools, cell makers have adjusted their capacity utilization rates downward to reduce inventory.

China's lithium battery industry's overcapacity will continue into 2024, and battery prices will still decline next year, TrendForce said.

Strong increases in lithium carbonate prices will not be immediately reflected in lithium battery prices, and prices of other raw materials are still falling, TrendForce said.

With battery costs rising sharply but vehicle prices rising at a limited rate, Niu needs to find ways to reduce costs, its CEO said.

If CATL does raise its LFP battery prices by 10%, then China-made Tesla Model 3 entry-level model and the lower-priced LFP-equipped models that Xpeng Motors just started delivering will have to face higher costs.