China cell inventory clear out well under way
There’s been quite a noticeable drop in lithium-ion battery output in China in recent months in both the ESS and EV segments. This has contributed to what’s become a pretty reasonable reduction in inventories in recent months. We’re now starting to see a re-emergence in battery production growth and, if this trend continues, it’s likely to be positive for raw materials demand. Note the seasonality in the China production trend. Output generally rises between March and August/September and then falls in Q4. That could very well limit the duration of any restocking event in raw materials, in our view.
Topics
Cells
China
Demand
ESS
EVs
Inventory
