TrendForce Reports Prices of Lithium-Ion Battery Cells Enters a Slow Climb; Supply of Polymer Cells Remains Tight

TAIPEI, Taiwan–(BUSINESS WIRE)–#ATL–The latest lithium-ion battery market report from EnergyTrend, a
division of TrendForce, finds that the price upswing for battery cells
has started to moderate since this third quarter. Although the price of
cobalt reached a new high for the recent years during the third quarter,
prices of battery cells have been climbing more slowly after the large
hikes in the second quarter. The overall price increase in the battery
cell market is anticipated to be even smaller for this fourth quarter.

By types, polymer cells saw the largest price hike this third quarter
with the average increase being more than 3% compared with the prior
three-month period. Both cylindrical and prismatic cells saw a smaller
sequential price that averaged around 2%. Cylindrical and prismatic
cells generally use cathode materials of lower cobalt content (such as
NMC), so their prices are less influenced by the dynamics of the cobalt
market. As for polymer cells, the upward movement of their prices in the
third quarter has not been as sharp as in the second quarter. However,
their average price increase was still the largest because of the costs
of raw materials.

Notebook market makes greater contribution to the demand growth of
polymer cells as brand vendors seek thinner and more efficient batteries

Polymer cells are expanding their presence in the notebook segment of
the IT battery market. Duff Lu, senior research manager of EnergyTrend,
pointed out that notebook makers have been striving to reduce the body
thickness for the majority of their products. While prices of new and
thinner notebooks are still too high to get most consumers interested in
replacing their older notebooks, brand vendors are very active in
incorporating very thin models into their mainstream offerings. This
type of notebooks from HP and Dell, for instance, are in high demand.
Therefore, notebook brands are starting to use polymer cells for their
batteries as to get the best energy intensity performance out of their
devices.

“Our market outlook indicates strong demand growth for IT polymer cells
in the near future due to increasing adoption by notebook brands,” said
Lu. “At the same time, the energy density specifications of notebook
batteries are going to become comparable to those of mobile phone
batteries.”

Lu also noted that more battery suppliers are shifting the focus of
their product development from mobile phones to notebooks as the former
application market has become less profitable due to price competition
among mobile phone makers. “The shift in suppliers’ focus benefits the
notebook battery market, which will see more technologically advanced
products,” said Lu. “For suppliers, selling notebook batteries will also
contribute to the growth of the average number of battery cells used.”

Generally, more suppliers from China such as BYD are expected to enter
the notebook battery market during the first half of 2018, and this
could help relieve the strain on the polymer cell supply. According to
EnergyTrend, the average number of cells used in notebook battery packs
is to remain constant in the second half of 2017. In the tablet segment
of the IT battery market, brand vendors have significantly lowered their
battery inventories. The average inventory for tablet batteries for this
third quarter dropped 8% year on year to 36.2 million units per month.
Meanwhile, the falling demand in the tablet battery market will
negatively affect the demand for integrated polymer cell batteries.

Supply of high-density batteries for mobile phones tightens as
manufacturers are more cautious in raising product specifications

In the market for batteries used in mobile phones, the polymer type’s
representation in the total demand is projected to grow from 67% in the
second quarter to around 70% in the third quarter. This shows that
integrated cell batteries have become the mainstream for mobile phones
across regional markets.

One major factor that will influence the development of polymer mobile
phone batteries is whether cell suppliers can further raise the battery
capacity while maintaining energy density at above the level of 730
watt-hours per kilogram. After the recall of Samsung Galaxy Note 7, cell
suppliers have become more cautious in deploying solutions that allow
for higher energy density. This heightened awareness of quality and
safety has also constrained the overall growth of battery supply for
mobile phones. In sum, finding breakthroughs on the energy density front
will be key to relieving tight supply for polymer batteries used in
mobile phones.

For further details of this press release, including the table – –
Changes in Prices of Lithium-Ion Battery Cells , 2Q17~3Q17 – –
please visit: http://press.trendforce.com/press/20171019-3000.html

About TrendForce (www.trendforce.com)

TrendForce is a global provider of market intelligence on the technology
industries. Having served businesses for over a decade, the company has
built up a strong membership base of 500,000 subscribers residing the
technology and financial services sectors. TrendForce has established a
reputation as an organization that offers insightful and accurate
analysis of the technology industry through five major research
divisions: DRAMeXchange, WitsView, LEDinside, EnergyTrend and Topology
Research Institute. Founded in Taipei, Taiwan in 2000, TrendForce has
extended its presence in China since 2004 with offices in Shenzhen and
Beijing.

Contacts

TrendForce
Ms. Pinchun Chou
Tel: +886-2-8978-6488
ext.669
[email protected]
or
Ms.
Lindsay Hou
Tel: +886-2-8978-6488 ext.667
[email protected]