Lithium carbonate prices hit new lows: New energy vehicle price cuts are expected to come again

Recently, the price of battery-grade lithium carbonate has continued to fall, according to the latest data released by Shanghai Steel Federation,Its price has fallen below 80,000 yuan/ton and reached 79,600 yuan/ton, setting a new low since its listing.Since the price of lithium carbonate reached a high of 600,000 yuan/ton in November 2022, it has begun a downward trend.

As a key raw material for new energy vehicle batteries, lithium carbonate is widely used in lithium iron phosphate, lithium cobalt oxide and some ternary lithium cathode materials.

Previously, due to the rise in lithium carbonate prices, many new energy vehicle companies had to announce price increases.

However, as the price of lithium carbonate falls, the cost of new energy vehicles decreases and prices begin to fall.

The current continued decline in lithium carbonate prices may intensify the "price war" in the new energy vehicle market.

Judging from market sales, demand for new energy vehicles remains strong.

According to the analysis of the Passenger Car Association, the growth gap between new energy vehicles and fuel vehicles has become increasingly obvious due to the price war at the beginning of the year, the substantial price cuts of some hot-selling new energy models, and the different tax policies on petrol and electricity.

Although the retail sales of the auto market continued to show negative growth in the second quarter, mainly due to the sluggish performance of fuel vehicles, which fell by 25% year-on-year, according to the data from the same period last year, the retail sales of passenger cars this year are expected to exceed 22 million units.

In summary,The decline in the price of lithium carbonate has brought room for price reductions in the new energy vehicle market, and the continued growth of market demand shows that the new energy vehicle industry still has strong development potential.

As costs decrease and competition intensifies, the price of new energy vehicles is expected to drop further in the future, bringing more choices to consumers.