Core Viewpoint - The price of energy storage cells has been declining in the first half of the year, with an average price of 0.289 yuan/Wh, reflecting a moderate decrease compared to the first quarter, but the overall price trend remains uncertain due to market competition and raw material supply issues [1][2][3]. Price Trends - In the first half of the year, energy storage cell prices ranged from 0.26 yuan/Wh to 0.38 yuan/Wh, with an average of 0.289 yuan/Wh, showing a slight decline from the first quarter's range of 0.3 yuan/Wh to 0.4 yuan/Wh [1][2]. - The average price of 314Ah cells dropped from 0.4 yuan/Wh to below 0.3 yuan/Wh, while 280Ah cells fell from 0.35 yuan/Wh to below 0.3 yuan/Wh over the past year [2]. - The weighted average bid for lithium battery storage systems in July 2025 was 0.442 yuan/Wh, a decrease of 4.98% [2]. Market Dynamics - The primary drivers of price fluctuations are supply and demand dynamics, with small capacity cell prices rising due to increased overseas demand and rigid production capacity constraints [3][4]. - The global shipment scale of energy storage cells is expected to reach 240.21 GWh in the first half of 2025, a year-on-year increase of 106.1% [3][4]. Cost Influences - The cost of raw materials, particularly lithium carbonate, has a significant impact on energy storage cell prices, with recent supply disruptions leading to price increases [4][5]. - The price of lithium carbonate has recently risen due to mining permit expirations, which may support energy storage cell prices in the short term [4][5]. Competitive Landscape - The long-term low-price competition has pressured profit margins for energy storage companies, prompting many to explore overseas markets where profit margins are higher [6][7]. - The domestic market is experiencing a trend of price wars that may extend to international markets, with calls for fair competition based on technology and service rather than irrational low pricing [6][7]. Future Outlook - The unit gross profit for energy storage batteries is projected to rise from 193 yuan/kWh in 2025 to 203 yuan/kWh by 2030, indicating a potential recovery in profitability [7]. - Industry capacity utilization is expected to gradually improve after a low point in 2024, potentially reaching 71% by 2027, alleviating price war pressures [7].