Can the price of lithium iron phosphate batteries drop?

Since the beginning of this year, the price of lithium batteries has plummeted by 20% to 30%. On the one hand, upstream material prices have soared, and on the other hand, downstream car companies have strongly demanded price cuts. Battery companies are caught in the middle, under pressure on both ends, facing the dual pressures of the market and cost. Energy storage electric lithium battery manufacturers know that the price of lithium iron phosphate battery systems has been reduced from 3.5 yuan/Wh 5 years ago to less than 1.8 yuan/Wh at present, and the previous battery composition of the Ministry of Industry and Information Technology will be reduced to 1 yuan in 2020. Goals within /Wh have a long way to go. Regarding the price negotiations for lithium iron phosphate batteries in 2019, OEMs and battery manufacturers have conducted multiple rounds of games, but the results are not satisfactory. Coupled with the rumors that the subsidy for new energy vehicles will decline by 40% in 2019, OEMs and battery manufacturers are more cautious in pricing of batteries in 2019, resulting in the delay in the final purchase price. At present, the price of lithium iron phosphate batteries of mainstream manufacturers has dropped to about 53,000 yuan/ton, which has dropped by more than 61% compared with the price of 90-95 yuan/ton at the beginning of last year. Industry insiders believe that at present, the trend of replacing lead-acid batteries with lithium batteries in the electric bicycle market is relatively clear, and there are already lithium iron phosphate battery manufacturers willing to re-enter the market. In terms of power lithium-ion batteries, after the introduction of the new energy subsidy policy, taking into account the requirements for cost reduction, the OEMs will allocate the cost through the selection of new battery suppliers. The OEM told SMM that at present, the advantages of using ternary batteries in new energy vehicles are still greater than those of lithium iron phosphate batteries. The current purchase costs of the two are not much different, but from the performance point of view, ternary batteries are more suitable for use. In passenger cars. SMM predicts that there is room for further price reductions of lithium iron phosphate batteries in order to gain a share of the low mileage market. Different from the trend of shrinking market demand last year, in the beginning of 2019, lithium iron phosphate batteries showed a booming upward trend. The price drop of lithium iron phosphate battery is about 20%-30%, and the price drop of ternary battery is about 10%-15%. There is an oversupply of lithium iron phosphate batteries, and prices passively fall under the dominance of the buyer's market. After nearly two years of production expansion, a large number of new lithium iron phosphate materials and technological transformation projects were gathered and released in 2018, leading to the current oversupply of lithium iron phosphate materials, and material companies will inevitably fall into a situation of substantial price reduction by customers. Disclaimer: Some pictures and content of articles published on this site are from the Internet. If there is any infringement, please contact to delete. Previous: What kind of power batteries are there for lithium iron phosphate batteries?