Battery Cell Production Beats Expectations, Driven by Energy Storage Demand

According to a survey conducted by Mysteel, battery cell production schedules for November and December have surpassed market expectations, particularly among top-tier manufacturers. This increase is largely driven by strong momentum in the energy storage sector, along with higher-than-anticipated power battery demand in Europe and a stable electric vehicle market in China.

Unlike the situation in 2023, where Lithium Iron Phosphate (LFP) production weakened towards the end of the year, the production of cathodes in November and December 2024 is expected to remain resilient, bolstered by the growing energy storage sector.

As a result of these developments, Mysteel has revised its supply-demand balance forecast for November and December 2024, shifting from an earlier projection of oversupply to now predicting a short supply due to increased LFP cathode production estimates.