Starting from 2023, the best energy storage cells and systems will be like falling meteors, constantly refreshing the bottom line. This trend looks set to continue in 2024. At the beginning of the new year, Datang Group announced the procurement plan of lithium iron phosphate battery energy storage systems in 2024, with a total capacity of up to 2GWh. This procurement drama attracted 49 companies to bid, with a minimum of 0615 yuan Wh, up to 0762 yuan wh, showing the fierce competition in the market. The installed capacity of new energy storage will continue to grow rapidly in 2023, however, behind this lies the song of ice and fire in the industry. The decline of the energy storage system has become the norm, and even in a bid opening at the end of 2023, the ** has dropped to 058 yuan wh. The ** of battery cells is also not optimistic, and China Energy Storage Technology (Wuhan) will be in 4 at the end of December 20236GWh cell frame bidding, 05c and 0The tender size for Lot 25C is 4GWh. The bidding unit price range of the 8 shortlisted companies is 0409 yuan wh-0508 yuan wh, the average price is 0439 yuan wh. Some companies said that the involution of the battery ** will keep the untaxed ** at 035-0.38 wh. The continuous decline of battery cells and systems in 2023 has revealed the trend of 2024 for us. This article will review and analyze the development stage, core issues and trends of the first war, hoping to help the industry see the beginning and end of this war and the future trend. 
In 2023, the energy storage field has experienced the "three stages" of the first battle. The development of this war is clearly visible, like a picture scroll gradually unfolding. In the first stage, the ** war came quietly like spring rain. Since the beginning of the year, the domestic power energy storage market has been dominated by low-price bidding, which has triggered a decline in lithium carbonate**, and also triggered a wait-and-see mood among owners. This stage is characterized by the continuation of the low price trend, which lays the groundwork for the next concentrated outbreak. As time passed, the war entered its second phase, and its effects began to spread more widely. The first in the field of battery cells has triggered a chain reaction, and the owners' demand for low prices has become more and more intense. At this stage, the ** of the DC side system is declining rapidly, and the ** of the AC side system is also hitting new lows. The lowest ** even fell below 05 yuan Wh, let the prediction of Dai Deming, chairman of Chuneng New Energy, - "The energy storage lithium battery market has officially entered 0."5 yuan WH era" - became a reality. In the end, the ** battle entered the third stage and started in full swing. It has become the norm for large reserves to concentrate on low-price bidding, and every corner of the industry has felt the smoke of this war. In order to cope with this war, companies have adopted various strategies, such as battery cell companies opened the "sales inventory" in November and December at the end of the year, trying to reduce the pressure by reducing inventory. And a number of leading companies are also "scuffling" in this ** war, BYD, CRRC Zhuzhou Institute, Xinwangda, Zhongtian Energy Storage, Penghui Energy, etc. have successively appeared in some tenders with the lowest **. Looking back on 2023, this energy storage battle is undoubtedly the key word for the development of the industry throughout the year. From the decline of lithium carbonate**, the wait-and-see mood of the owners, to the "halving" of the winning bid price of energy storage cells and systems, this war has brought a huge impact to the entire industry. At the end of December, 05c and 0Lot 25c has a 0409 Wh **, compared to 0 in January9 yuan Wh, energy storage cells** decreased by more than 55%. Similarly, the average bid price of energy storage systems also fell to 0 in December79 yuan Wh, a decrease of 48% compared to the beginning of last year. This first-class battle has been launched in an all-round way, which has aroused the attention and thinking of the whole industry. In this fierce battle, every business is looking for its own position, trying to find its own way to survive in this "melee".
In-depth analysis of the core factors behind the first war, we find that without exception, it points to the structural surplus of energy storage. As early as the third quarter of 2023, this industry phenomenon attracted widespread attention. Is it the result of the joint action of the first chain and technology, or is it excessive competition and excess capacity that cause enterprises to sacrifice profits in exchange for sales? Obviously, the ** war points more to the latter. 
In the first half of 2023, the generality of energy storage cells will remain at 065 Wh or more. However, in just two to three months, this ** has dropped sharply to 0$5 Wh low. Behind this, there is a close relationship with the sharp rise of the raw material lithium carbonate. Over the past two years, raw materials** have been a key factor in battery costs due to tight capacity and fluctuations in lithium carbonate**. For example, the spot price of battery-grade lithium carbonate has dropped from nearly 600,000 tons at the beginning of 2022 to about 100,000 tons, a decrease of more than 80%. However, according to relevant studies and surveys, under the current level of lithium carbonate** and technology, the production cost of batteries is still difficult to be less than 045 Wh. In addition, the wave of expansion in 2023 has made the problem of structural excess energy storage industry more and more prominent. By the end of August 2023, the planned construction of energy storage batteries and system integration capacity has exceeded 15twh。In the context of this structural over-residue, the ** of energy storage batteries will continue to be 035-0.$37 at the level of wh. However, the core problem of the war is the increasing security issues, which may cause concern for the entire industry. The continuous decline has brought huge difficulties to energy storage and battery cell companies, resulting in a decline in corporate profits or even losses. What's more serious is that the extreme cost pressure has brought huge safety risks to the development of the industry. Although price reduction for the market is a helpless move for some companies to survive, more and more companies say that low prices are no longer the "admission ticket" to enter the market. All kinds of capital and cross-border manufacturers have poured in, as if the first war has become the only way out. Some companies pointed out in an interview that "for every target, dozens of companies often grab a target, which further exacerbates the downward trend." In fact, the "drinking to quench thirst" type of ** war will only cause more problems. For example, in the second half of 2023, the entire industry is permeated with "security concerns", which to a certain extent has led to a more sluggish development of the industry. Owners are afraid to invest and use related products due to safety concerns, which directly affects the process of the entire industry. Recently, the person in charge of CRRC Zhuzhou Institute also pointed out that "some of the best chain links may disappear, and we are also very worried that this industry will be frustrated again because of quality and safety issues." "Too many first-class wars may form a new "triangular debt" in the industry, which will have a more adverse impact on the development of the industry. Under the wave of the first war, the energy storage industry has shown four major development trends. First of all, the competition between battery cells and system companies is becoming more and more fierce, and major enterprises have set foot in the integration business in an attempt to occupy a place in the market. However, the transformation of battery cell manufacturers into a system-wide role may lead to competition with customers, and various factors need to be considered. Secondly, more and more energy storage industry chain enterprises choose to go overseas to find opportunities, Europe, America, Australia, Japan and other mainstream energy storage markets are still concerned, but emerging markets such as Africa, Southeast Asia and the Belt and Road countries are also gradually emerging. However, going overseas is not an easy task, and enterprises need to face new challenges and competition in overseas markets. Third, the market's demand for cost reduction capabilities is becoming increasingly prominent, and energy storage companies on the industrial and commercial side need to strengthen their back-end capabilities and use advanced technologies to improve the profitability of owners. At the same time, grid-based energy storage and grid-based energy storage with trading capabilities on the power storage side have also attracted much attention. Under this trend, the cost reduction of core components of energy storage systems has become the focus, and battery cell companies have accelerated the launch of new energy storage products with large capacity, long life and high safety. Finally, new incremental markets and differentiated extension markets are being explored at an accelerated pace. In addition to the traditional energy storage field, industrial and commercial energy storage application scenarios are emerging, such as data centers, virtual power plants, etc. At the same time, the industry is also constantly exploring the scope of product use, breaking through the upper limit of lithium battery use, and opening up a broader market space. In the future, enterprises need to seek differentiated competition and breakthroughs in the context of the first war, and orderly competition will become a new beginning for the development of the industry.
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