Pitch Corrine Lin

Recording of Tuesday, June 18, 2024 | The smarter E Europe 2024 | Conference Program | Language: English | Duration: 6:14 .

Corrine Lin of Involink Analyzes Plummeting Lithium Carbonate Prices Due to Oversupply and Chinese Subsidies in Energy Storage Market Update

Corrine Lin, Chief Analyst of InfoLink Consulting, discusses the firm's focus on solar PV and energy storage market research. They gather data through industry discussions and validate it with both buyers and sellers to ensure accuracy. The presentation specifically addresses lithium carbonate pricing trends, noting a sharp decline due to oversupply last year. This drop has also reduced energy storage sales prices significantly. Three main factors contribute to this situation: substantial subsidies from Chinese local governments; easier financing for capacity expansion in China’s critical energy storage sector; and an overestimation of demand coupled with construction time lags for new capacities. Despite high initial prices prompting many manufacturers to expand production simultaneously, demand did not meet expectations. Current cell manufacturing costs in China are challenging profitability even for top-tier companies, with some selling below production cost just to maintain market presence amid fluctuating conditions. Utilization rates reflect this strain—top five manufacturers operate at 55-60%, while others manage only around 40%. Further supply-demand dynamics will be discussed later.

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Speaker

Corrine Lin
Chairman and Chief Analyst
InfoLink Consulting Co,. Ltd.
China

Talk of session: BESS Supply Chain - Seizing Opportunities, Mitigating Challenges

The worst appears to be over. After significant bottlenecks in the battery energy storage systems (BESS) supply chain, the supply of lithium-ion batteries is expected to far exceed demand, helping to resupply the market. However, a closer look reveals that BESS players should continue to actively manage their supply chain, given the continued market dominance of EV OEMs, rising ESG concerns, increasing barriers to free trade and the notorious "pork cycles" of the mining industry. But how should players respond?In this panel, key players will discuss key trends in the BESS value chain, share their perspectives on the resulting challenges and opportunities, and discuss the best strategies to secure supply at optimal cost.