Media Contact

Ms. Lindsay Hou

Tel: +886-2-8978-6488 ext.667

RSS Subscription
  NAND Flash  
  Consumer Electronics  
  Green Energy  
  Internet of Things  
  Automotive Electronics  
  Innovative Technological Applications  

Press Release

TrendForce Expects Prices of Lithium-ion Batteries to Increase by 5~15% in 3Q18 Due to Rising Costs of Materials

Monday , 08 / 06 / 2018 [ Analysts: Duff Lu. ]

Cobalt prices have reached another record high in 1Q18, according to the data from EnergyTrend, a division of TrendForce. As the result, the prices of lithium-ion battery cells are estimated to increase by 5~15% QoQ in 3Q18, but would have a chance to remain flat in the fourth quarter.

According to Duff Lu, senior research manager of EnergyTrend, the overall prices of IT batteries have been growing since 2Q18 due to the rising costs of materials in 1Q18, but the growth was more moderate than expected as some battery makers had stocked up in advance. However, the price growth would be steeper in 3Q18. Particularly, prismatic cells, cylindrical cells, and polymer cells would witness a QoQ price growth of 6~8%, 7~9%, and 10~15% respectively. In addition to rising material costs, the increase of cylindrical cell prices is also due to the undersupply of this cell type as a result of decreasing production capacity of suppliers.

Manufacturers of key battery system components have allocated increasing capacity to automotive components, which has squeezed capacity for capacitance. In addition to capacitance, the impact on production capacity has been expanded to passive components such as resistors and inductor. In 3Q18, resistors are expected to see a QoQ price rise of 5~10%, the highest among all the components. As for capacitance, it would see a small price increase of 3~5%, because automotive components have occupied some of the production capacity that is originally for IT applications.

In terms of battery technology development, some manufacturers have introduced solutions with a higher ratio of nickel or higher voltage to increase the energy density. However, a higher ratio of nickel brings along higher requirements for material structure stability and better conditions for the battery cell manufacturing process. Therefore, suppliers of high-nickel cells are mainly based in Japan. As for high-voltage solutions, they are commonly used in digital products. Chinese battery cell manufacturers have begun to cut into this field.

As for the market of cobalt, it previously experienced a price hike, because the market expected the rapid development of China's new energy vehicles to boost the cobalt demand. However, the demand from China is not expected to influence the global demand-supply situation of cobalt significantly in the near term. This is because the global demand for cobalt is around 110,000 to 120,000 tons per year currently, of which only about 7,000 to 8,000 tons come from new energy vehicles in China. EnergyTrend notes that the issue of illnesses related to cobalt mining in Congo may affect the production capacity of this metal. Meanwhile, the introduction of high-nickel solutions to the market in 3Q18 would also have certain impacts on cobalt demand. The two factors would jointly affect the future price trend of cobalt.

To keep updated with our press releases, please follow our social media pages. facebookGoogle+TwitterLinkin

TrendForce Press Center Copyright Notice
TrendForce grants you a limited license to use and/or republish any of the press releases on TrendForce Press Center for any legitimate media purpose (including copying and redistributing the content of press releases in any format and via any outlets), provided that you follow these license terms:

1. Reference TrendForce as the source on your works, or include a hyperlink to the original release on the TrendForce site.
2. Do not modify any press release wording, or maliciously alter its related information. Users are subject to any civil or criminal liabilities if the information displayed in the copy or redistribution of press releases is inconsistent with the original materials on TrendForce Press Center.
3. Do not modify or add hyperlinks, including but not limited to adlinks, within the press release. The authorization of press releases on TrendForce Press Center does not grant users the right to suggest, approve or endorse their value-added derivatives on behalf of this body.

If your citations of press releases contain mistakes and/or have information missing, TrendForce may, in its sole discretion, direct you to remove the content distributed via TrendForce from your site at any time and for any reason, and you agree to comply with such request.