Second-life Application Market Prices Edge Up, LFP Leads the Gains [SMM Weekly Review]
This week, prices in China's second-life battery market edged up, with the LFP category leading the gains. Within LFP, commonly used energy storage specifications saw notable increases, while the small-capacity ternary category edged up in tandem and large-capacity products saw limited movement. The core drivers came from the transmission of previously high costs and the rise in new battery cell prices, collectively boosting second-life product prices, alongside sustained energy storage demand release supporting the LFP category. On the cost side, lithium carbonate pulled back this week while nickel and cobalt continued to grind lower, though this has not yet transmitted to the second-life battery market. On the demand side, energy storage was the key boost, small power applications remained sluggish, and backup power scenarios were generally stable. In the short term, the second-life battery market is expected to be stable with modest gains and limited upside, with LFP outperforming ternary. If lithium carbonate continues to pull back, it may exert some downward pressure on LFP prices.