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Date November 09, 2022

In response to the global lithium-ion battery shortage, InfoLink launches the Global Lithium-ion Battery Supply Chain Report 2023 Q1, providing in-depth insights of status quo and trends of lithium-ion battery supply chain.

Amid a shattered global economy and industries this year, lithium-ion battery prices, which are originally anticipated to decline, rose instead, due to rapidly growing market demand, materials shortage, and rising metal prices, as well as the Covid-19 lockdown-induced supply chain crisis. Metals needed for cell manufacturing, including copper, aluminum, lithium, nickel, cobalt, and manganese, are faced with the challenge of “green inflation,” driving up lithium-ion battery prices. Moreover, continued advancement in technology may bring potential challenges due to changing cell materials.

NCA/NCM, LFP cell price trends


Localization of cell supply chain

Prices for cell pack has reached the short-term peak, allowing supply crunch of raw materials to ease in the second half, said InfoLink’s senior analyst Dr. Yuan Fang-wei. It’s expected that global supply of lithium-ion battery will balance with demand in the second quarter of 2023. As the EU’s RePower EU and the U.S.’ Inflation Reduction Act (IRA) came into force, cell supply chain localization becomes a trend. The EU’s plan to ban the sale of fossil fuel cars from 2035 and energy crisis all boost energy storage demand. In addition to Poland and Portugal, where Korean cell manufacturers have built manufacturing plants, local cell manufacturer start-ups in China and Europe also started building facilities this year. In the U.S., subsidy provided for cells made and assembled locally and EVs, as well as ITC for standalone energy storage under IRA also upderpins the development of cell and car makers.

In face of supply bottleneck in the upstream, cell manufacturers are speeding up their vertical integration, with leading manufacturers investing in the upstream materials actively and forming partnership with car makers and energy storage businesses in the downstream to foster a circular economy.  This also significantly increased the threshold for industry entry. InfoLink expects effective cell capacity to come from Tier 1 and Tier 1 manufacturers mainly in the future.
 

LFP cell trends

In terms of cathode material, LFP and NCA/NCM battery have been highly discussed in the industry. In 2021, the market share of LFP officially exceeded NCA/NCM to become mainstream in China. As patents of LFP-related materials will expire between 2022 and 2023, the market share of LFP battery will increase in regions outside of China. Yet, the cost difference between NCA/NCM and LFP will narrow in the long term. Coupled with the value of NCA/NCM recycling, the outlook for LFP may look promising in the short term but moderate in the long run.

Global Lithium-ion Battery Supply Chain Report 2023 Q1 looks into the lithium-ion battery supply chain, providing businesses with comprehensive market information and development trends in the short, medium, and long term.

  • Global lithium-ion battery market overview
  • Supply and demand analysis of lithium-ion battery
  • Analysis of upstream materials of lithium-ion battery
  • Price forecast
  • Analysis of major businesses in the lithium-ion battery supply chain
  • Analysis of electrochemical cell technology trends

Click to download a sample of Global Lithium-ion Battery Supply Chain Report 2023 Q1