Cylindrical battery prices to decline by 2.8 percent in 4Q13, predicts EnergyTrend
In addition, medium-high capacity battery (2.8~3.0 Ah) can reduce the number of pieces used. Under the circumstance where cost remains unchanged, medium-high
capacity battery has gradually become a mainstream product. More manufacturers have started to enter this market segment, which has led to the decreased medium-high capacity battery price.
Currently, battery cells are segmented by capacity, which can be divided into three types – high, medium, and low capacity. Although >3.0 Ah high capacity cells can be used on cylindrical batteries, EnergyTrend suggests that the cost threshold of cylindrical batteries is too high which would make it difficult to meet the lightweight requirements of high-end products. Polymer batteries are more suitable for high-end products. As for 2.8~3.0 Ah medium-high capacity cells, their production technology is quite similar to that of 2.2 Ah. The unit price is not that different from 2.2 Ah, and their volumes can be reduced efficiently.
The 2.8~3.0Ah cell is the best choice for middle-end products to maintain cost and reduce volume. Last but not least, standard batteries are more suitable for low-end products which are more sensitive to cost. Due to standard battery’s larger market share, it’s more likely to go into mass production. But in terms of cost advantage, cylindrical battery seems to be the best choice in the short run.
EnergyTrend indicates that in terms of price, the cylindrical battery sector reflects a downtrend from long-term perspective. In 4Q13, the number of battery cells used in a laptop has been reduced from six pieces to three to four pieces. Under the circumstance where endurance remains the same, the choosing of high capacity cells will become a trend. Cell manufacturers have started to produce more high capacity cells following the increased demand. The result is that the 2.8~3.0Ah battery cell price will be decreased by 2.8% QoQ.
The supply and demand is relatively balanced for polymer batteries while the price is also showing steady decline (-2% QoQ). The price drop is likely to be caused by routine equipment amortization. The market share of polymer batteries is estimated to grow steadily due to the increased popularity of portable products. However, apart from Apple, polymer battery applications will still be limited to high-end products. So far, the biggest challenge for polymer batteries will be how to maintain stable supply while solving the inventory issues caused by customization.
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