Energy Storage Battery Cells in Second-Life Application Market Remain Firm, Ternary Small- and Medium-Capacity Cells Continue to Decline [SMM Weekly Review]

Published: Aug 20, 2026 16:31

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This week, the second-life battery market was generally stable, with continued divergence among categories. Prices of ternary small-to-medium capacity second-life battery cells continued to decline, while other categories remained basically stable, and market transactions were relatively sluggish. On the cost side, lithium carbonate prices consolidated this week with repeated ups and downs; cobalt sulphate experienced a significant decline, and nickel sulphate prices edged down, weakening the overall raw material cost support. On the supply side, battery cell manufacturers maintained the previous sluggish shipments, with only long-term contract orders shipped normally, and low willingness to sell for spot orders. Some traders, impacted by financial pressure and market expectations, had a strong sentiment to sell off inventory. Meanwhile, dismantled materials continued to be diverted to the recycling side, with no significant increase in actual circulating supply in the second-life battery market, but the pricing logic for dismantled materials has gradually moved closer to the recycling side. On the demand side, downstream pressure to push for lower prices continued to increase, with acceptability of high prices being constantly lowered. Under the pressure from the demand side, prices of ternary small-to-medium capacity battery cells continued to decline. Under the current market landscape, only battery cells in the ESS sector remain relatively firm, while battery cells applicable to the conventional small power market will continue to remain under pressure in the short term.

SMM August 20 news:

Second-Life Application This Week:

This week, the second-life battery market was generally stable, with divergence among categories persisting. Prices of ternary small and medium capacity second-life battery cells continued to decline, while other categories were basically stable, and market transactions were relatively quiet. On the cost side, lithium carbonate prices consolidated this week, with repeated ups and downs; cobalt sulphate saw a significant decline, and nickel sulphate prices edged down. Overall, raw material cost support weakened. On the supply side, battery cell manufacturers maintained their previous weak selling stance, with only long-term contract orders shipped normally, and a low willingness to sell spot orders. Some traders, under capital pressure and influenced by future market expectations, showed a strong sentiment to offload inventory. At the same time, dismantled materials continued to be diverted to the recycling end, and the actual circulating supply in the second-life market did not see a significant increase. However, the pricing logic for dismantled materials has gradually aligned with the recycling end. On the demand side, buyers continued to push for lower prices, and their acceptance of high prices kept decreasing. Under pressure from the demand side, prices of ternary small and medium capacity second-life battery cells continued to decline. In the current market structure, only battery cell prices in the ESS sector remained relatively firm, while battery cells for the conventional small power market were expected to remain under pressure in the short term.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv 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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