As demand in the power and energy storage battery markets cools, cell makers have adjusted their capacity utilization rates downward to reduce inventory.

So far this year, the average price of battery-grade lithium carbonate in China has fallen about 73 percent from nearly RMB 520,000 per ton.

The lack of demand in China's lithium battery industry will continue in the first quarter of 2024, and it is unlikely to see demand warm up until at least the second quarter of next year, the report said.

On the supply side, the accelerated exit of capacity that doesn't have a cost advantage, such as those that lag behind in terms of energy consumption and productivity or are smaller in scale, is expected to slow the growth of supply and accelerate the return of supply and demand to normal in the power battery market, the report said.

($1 = RMB 7.1374)

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