Battery Silver Member Report- 1Q18
Membership: Lithium Battery Market Dynamics - Materials Cell and Application Requirement
In 1Q18, the supplies of cylindrical battery and prismatic battery remain tight. Yet, SDI has cancelled the suspension of production and decided to supply prismatic battery in 2018, alleviating the tight supply situation for prismatic battery. The tight supply of cylindrical battery in 2018 will continue to happen.
Cobalt price has surged, making LCO cell prices in 2Q18 rise massively. Due to the tight supply, the increase of cylindrical battery price will surpass 10%. Thus, the MNC battery combined lithium and cobalt materials will start to enter the market in 4Q18.
If the material price keeps increasing, in 4Q18, battery cell price will reflect the material cost again.
Tesla will increase energy density and reduce cobalt usage amount by enlarging battery cell volume and changing material percentage.
With the current battery technology, when the penetration rate of new energy passenger vehicle reaches 15%, cobalt will be in short supply.
The cost-effectiveness of energy storage battery for frequency offset will be higher than the general power adjustment (LL).
China’s release of standard specifications and recycle standard for lithium battery cell and battery pack may help the reuse of lithium battery life cycle.