[SMM Analysis] Spot order coefficients still trended upward; cobalt sulphate price pullback drove precursor prices lower

Recently, Rolls-Royce Motor Cars announced the launch of the Spectre Series II. As an upgrade to the brand's first all-electric model, the Spectre, the new vehicle features optimized battery cell technology, resulting in significantly improved overall performance. Under the WLTP standard, the driving range has increased by up to 18% to 628 kilometers, while the charging time has been reduced by 14%. Additionally, the brand has recalibrated the powertrain, delivering quicker power response and more precise handling.

On June 3, it was reported that Hong Kong's first large-scale recycling facility for decommissioned electric vehicle batteries will officially commence production in June 2026. The facility will process waste power batteries into regenerated black mass, achieving the resourceful reuse of waste materials. According to estimates from the Environmental Protection Department, the quantity of decommissioned electric vehicle batteries generated in Hong Kong will increase year by year, growing from approximately 1,300 metric tons in 2026 to 6,700 metric tons by 2030. The locally planned producer responsibility scheme for electric vehicle batteries is evaluated to generate an annual economic added value of approximately 66 million Hong Kong dollars and create over 100 full-time jobs in the local solid waste recycling sector. Currently, there are five licensed enterprises in Hong Kong qualified to dispose of automotive lithium batteries.

Consumer battery cell manufacturers are generally adopting a wait-and-see attitude, expecting further declines in raw material prices. A few manufacturers have made small-batch restocking purchases, while most are waiting for prices to drop further.