The average price of LFP batteries is at an all-time low, and Chinese electric vehicle batteries are becoming more competitive.

2023-11-28 03:08:57

▲ As LFP battery prices drop to an all-time low, analysis is gaining ground that the influence of Chinese companies in the electric vehicle battery market will further increase. The photo shows Chinese battery company CATL (Ning The Die) unveiling its new battery product, Shenxing, on August 16. <연합뉴스>

[비즈니스포스트] It was calculated that the average price of lithium iron phosphate (LFP) batteries by 2023 has fallen to an all-time low.

As China, which has invested heavily in LFP batteries, appears to be releasing cheaper LFP batteries than other regions, it is predicted that China’s influence in the electric vehicle market will grow further.

According to Energy Storage News, a British energy media outlet, on the 27th (local time), the average price of LFP battery packs in 2023 was $139 (regarding 179,300 won) per kilowatt hour (kWh).

It is down 14% from 2022 and is the lowest price ever.

The main reasons for the price decline were the decline in battery raw material prices and the increase in production. On the other hand, as demand for electric vehicles has recently been slowing, analysis continued that battery supply is exceeding demand and prices are falling.

The price of Chinese LFP batteries is cheaper than the international average price.

According to Energy Storage News, the average price of Chinese LFP batteries is $126 (regarding 162,600 won) per kilowatt hour, which is $13 lower than the world average price.

Batteries made in the US and Europe were priced 11% and 26% higher than Chinese products, respectively.

Energy Storage News analyzed that “the electric vehicle battery industry in the U.S. and Europe is still in an immature stage,” and “China has fierce competition among domestic battery companies, making it price competitive.”

Chinese battery companies have increased the price competitiveness of LFP batteries by vertically integrating the entire process from raw material mining to finished product production.

There are also statistics showing that it is cheaper than one-third of the price of lithium high nickel (NMC) batteries, commonly called ternary batteries.

Despite the weakness of low energy density and rapid discharge in the cold, Chinese companies are increasing their influence in the battery market as LFP batteries have shown high price competitiveness.

Tesla, the world’s No. 1 electric vehicle company, is also known to have actively introduced LFP from China’s Ningdusdai (CATL) and BYD.

Energy Storage News explained, “More and more companies are using LFP batteries in the electric vehicle market.”

The trend of falling prices is expected to continue.

Jordan Roberts, an analyst at Fast Market, a raw material price analysis agency, said through Energy Storage News, “The price of LFP batteries may fall below $100 by 2025. In China, the point where it falls below $100 may be sooner.” I looked. Reporter Lee Geun-ho

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