Prices Keep Climbing! On August 27, SHFE lead futures soared to ¥19,680 per ton, that's a 25% jump from last year! With raw material costs hitting record highs, the back-to-school season heating up, and e-bike "trade-in" incentives gaining steam across China, another round of lead-acid battery price hikes is on the way. Distributors, act now and stock up before it's too late!
Battery shortages and rising prices have become the new normal, and here are the top 3 reasons why:
1. Lead futures surged by 415 points in a row, marking two consecutive gains. The fluctuation in lead prices has directly impacted battery production costs, pushing overall prices higher.
On August 27, the latest spot price for #1 lead in Shanghai rose by ¥100/ton, reaching a price range of ¥17,450–17,600/ton, with an average price of ¥17,525/ton. At the same time, SHFE lead main contract increased by ¥110/ton to ¥17,730/ton. In total, lead futures have seen a cumulative increase of ¥415/ton over two consecutive trading sessions.
According to frontline market sources, lead prices have shown a stronger trend in recent days. However, overall supply and demand remain below expectations, and there is no significant improvement in terminal consumption so far. Currently, mainstream market prices are stable at ¥360–370/set for 48V12Ah batteries and ¥460–480/set for 48V20Ah batteries. It is recommended that businesses in the electric vehicle industry adjust their inventory levels promptly in response to market fluctuations.
2. Back-to-school season and autumn harvest drive battery replacement demand
In the next month, coinciding with the back-to-school season and autumn harvest, many families will turn to electric bicycles as their preferred mode of transportation. After a period of inactivity or frequent use during the holidays, many e-bike batteries have experienced a decline in performance. To ensure safe and convenient travel, many parents are opting to replace the batteries at this time.
At the same time, electric tricycles play a significant role in rural areas, where the performance of batteries, as the core component of electric vehicles, directly affects the efficiency of the autumn harvest. Under high-intensity usage, old batteries often fail to meet the demand. Therefore, the autumn harvest season has also become a peak period for battery replacements.
The dual impact of the back-to-school season and autumn harvest has led to a surge in battery replacements. Major battery and vehicle distributors and manufacturers have quickly seized this opportunity, launching various promotional activities and offering high-quality services. They are attracting consumers by improving product quality, optimizing after-sales services, and reducing prices. Additionally, they are strengthening partnerships with e-bike retailers and repair shops to create a convenient and efficient battery replacement ecosystem.
3. New trade-in policies rolled out in many regions, boosting market consumption vitality
On July 25, the National Development and Reform Commission (NDRC) and the Ministry of Finance jointly announced a major policy, pledging an investment of ¥300 billion to promote large-scale equipment upgrades and trade-in programs for consumer goods. Electric bicycles have been specifically included in the subsidy scope. In response to the national initiative, local governments across the country have actively launched preferential policies for e-bike trade-ins.
In the various trade-in programs across regions, consumers can enjoy substantial subsidies and discounts. By trading in their old e-bikes for new models, they not only reduce the cost of purchasing a new vehicle but also contribute to environmental protection. At the same time, this initiative has pushed e-bike manufacturers to continually improve product quality and performance to meet the growing demands of consumers.
The introduction of new trade-in policies across various regions has brought new development opportunities to the electric vehicle market. In response to the ongoing trend of rising battery prices, distributors should take proactive measures and prepare their stock. Firstly, it is important to stay informed about the specific details and implementation progress of the trade-in policies in different regions in order to better grasp market demand. Secondly, strengthening communication and service with consumers is crucial. Distributors should clearly explain the benefits of the trade-in policies and the reasons behind the price increases, enhancing consumer awareness and acceptance. Providing high-quality after-sales service will also help build consumer trust and satisfaction.
Furthermore, distributors can manage rising battery prices by optimizing inventory management and reducing operational costs. In conclusion, distributors should remain confident, seize market opportunities, and pursue sustainable growth.