EV battery prices fell by over 10% in August, according to market research firm TrendForce. This decline was driven by a combination of factors, including insufficient downstream demand, weak demand in the energy storage and consumer electronics sectors, and falling prices of lithium salts and cobalt.
TrendForce expects market supply and demand to gradually stabilize in September, but prices are likely to continue to decline in the near term. This is due to a glut in China’s energy storage cell production capacity and manufacturers’ hesitation to stock up on raw materials.
Implications for the SMT Industry:
The decline in EV battery prices is good news for the SMT industry, as it will make electric vehicles more affordable and accessible to consumers. This is likely to boost demand for SMT services, as more and more electronics manufacturers transition to producing electric vehicles.
However, the downward pressure on EV battery prices could also have some negative implications for the SMT industry. For example, if battery prices continue to decline, it could put pressure on SMT manufacturers’ margins. Additionally, if battery manufacturers are forced to cut production, this could lead to a decrease in demand for SMT services.
Overall, the outlook for the SMT industry is positive, as the demand for electric vehicles is expected to grow in the coming years. However, SMT manufacturers should be aware of the potential for downward pressure on EV battery prices and make necessary adjustments to their businesses accordingly.