Second-life Battery Cell Market Sees Slight Price Increase; Energy Storage Demand Supports Market Resilience [SMM Weekly Review]

Published: Jul 23, 2026 17:31

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The second-life battery cell market in China edged up slightly this week, with overall performance remaining steady. On the cost side, trends diverged: prices of lithium carbonate and cobalt sulphate declined, while nickel sulphate edged up, resulting in limited impact of raw material fluctuations on second-life battery cell costs. The supply side stayed stable, with no significant fluctuations in supply sources, exerting a relatively small impact on market conditions. Demand was structurally differentiated: traditional small-power demand nearly faded, while demand from energy storage and other application scenarios held steady. Markets outside China delivered an impressive performance, as demand for second-life battery cells used in energy storage continued to surge in the Middle East and Africa, effectively boosting shipments. Coupled with rising prices of new battery cells, the cost advantage of second-life battery cells became more pronounced, improving downstream customers’ acceptance of the price increase and supporting the slight market uptick.

SMM, July 23:

Second-life application this week:

China’s second-life battery cell market edged up this week, with overall operation leaning stable. Cost side, trends diverged—lithium carbonate and cobalt sulphate prices declined, while nickel sulphate edged up. Raw material fluctuations had limited impact on second-life battery cell cost constraints. Market supply remained steady, with no notable changes in cargo availability, exerting relatively small influence on market conditions. Demand side, structural divergence was pronounced, with traditional small power demand nearly fading, while energy storage and other application scenarios held steady. Markets outside China performed notably, with ongoing volume growth in energy storage second-life battery cell demand from the Middle East and Africa, effectively boosting shipments. Coupled with rising prices for new battery cells, second-life battery cells gained a clearer cost-performance edge, increasing downstream acceptance of the price hikes and supporting the market’s mild price increase.

Short-term market trends diverged. Energy storage second-life battery cells, supported by rigid demand both in China and abroad, are likely to sustain their price rally. For other categories, price increases primarily relied on price comparison dynamics with new battery cells, with insufficient rigid demand support and weaker price sustainability. Overall, the second-life battery market will maintain a structurally firm posture in the near term.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lyu Yanlin 021-20707875

Lei Yue 021-20707873

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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