TrendForce’s investigations show that the prolonged price decline in Chinese EV and ESS batteries in 2024 eased in the fourth quarter.
EV and ESS battery suppliers are expected to push for price increases in 2025 as global EV and energy storage demand grows, stabilizing key battery material prices like LFP, li-ion battery copper foil, and electrolytes.
Despite a general decline in EV battery prices throughout 2024, peak-season demand in the second half slowed the downward trend significantly in Q4. China’s EV market is projected to grow by 30 percent in 2025, supported by government incentives, with January battery prices expected to remain stable.
The energy storage market saw strong growth in China, the US, Europe, and emerging markets like the Middle East and Southeast Asia. Although excess production capacity and falling raw material costs led to a significant drop in LFP ESS battery prices, the downward trend slowed in late 2024. As the energy storage market enters its off-season in 1Q25, production reductions and stable material costs are expected to keep January ESS battery prices steady.
Amid intense competition, manufacturers are focusing on technology and production process improvements. Ultra-large-capacity storage batteries exceeding 500Ah are being introduced to raise industry entry barriers, with these high-capacity cells expected to enter the market in 2025.
Price declines for most battery materials have plateaued, with slight rebounds observed in December 2024 for materials like LFP and electrolytes. Rising raw material costs will increase pressure on battery makers, prompting efforts to control production expenses as automakers face ongoing price wars.
Baburajan Kizhakedath