The latest research by TrendForce’s research division EnergyTrend said that overall demand for lithium batteries will be steady as what it was for the fourth quarter last year.
EnergyTrend said in a report that strong promotion for power banks can be expected during the first six months of this year, followed by a push for prismatic laptop batteries as well as the increasing popularity for new smartphones with large screens, such as the iPhone 6s. These factors will affect the supply and demand for cylindrical, prismatic and polymer battery markets, EnergyTrend said.
EnergyTrend Research Manager Duff Lu (呂理舜) said that the steepest price decline in the fourth quarter last year went to polymer cells, with most models having price decline just under 5%. The price for prismatic cells, which is related to the production base period, also fell significantly in the short term, between 3% and 5%. Compared with the former two types, the cylindrical cells remained relatively constant, he said.
Although demands and prices will fall slightly in the first quarter of 2015, the long-term, year-long outlook for battery price is stable and chances of great fluctuations will be rare, Lu said. Lu also predicted that the cylindrical cell production will continue its decline.
“Major brand name cell manufacturers are to shift production to electric car-related applications. Battery makers will seek to find a balance between electric car and consumer products as to avoid problems like overproduction and poor gross margin performance following low capacity batteries’ exit from the market,” Lu said. “Such strategy will affect future prices.”
Quoting EnegeryTrend’s research, Lu said that the new iPhone 6 was the only bright spot for the market during the fourth quarter last year. Major suppliers are now focusing on the supply and demand of polymer cells. China’s subsidy policy and expanding production means that the price war among polymer cells will continue.
EngergyTrend’s research report said that prismatic cell price will be stabilized when the market reaches equilibrium in supply and demand.
