TrendForce: China's demand for electric cars recovers slowly, and battery prices are expected to fall further in March

CTOnews.com March 7 news, TrendForce Jibang Consulting released a report today that the average price of battery-grade lithium carbonate and lithium hydroxide market in China fell by 9% and 8% respectively in February from the previous month, with the lowest price of battery-grade lithium carbonate falling below 400000 yuan per ton.

▲ Tuyuan: TrendForce Jibang Consulting report points out that the growth rate of China's electric vehicle market has slowed down at present. After a decline in market sales in January, market demand recovered slowly in February, and sales in China's electric vehicle market are expected to grow by about 20% month-on-month in February.

Due to the lower-than-expected recovery of terminal market demand, power battery industry chain enterprises maintain a low inventory procurement strategy for raw materials in the process of continuous inventory reduction, while the upstream supply capacity increases while the downstream demand growth slows down. the power battery market is in a state of oversupply for the time being.

In addition, TrendForce Jibang Consulting said that the recovery of demand in the terminal market is still relatively slow, and the price of power batteries is expected to fall further in March as the cost of power batteries falls.

At present, the China Automobile Association has not yet released the production and sales data of new energy vehicles in February 2023. As a reference, CTOnews.com reported that in January 2023, the production and sales of new energy vehicles reached 425,000 and 408000 respectively, down 46.6% and 49.9% respectively from the previous month, 6.9% and 6.3% respectively from the same period last year, and the market share reached 24.7%.