Background of the new SMM price
Since 2022, with the rapid development of the new energy industry, changes in the lithium carbonate market have caught a lot of limelight, and the lithium battery recycling industry has paid growing attention to the recycling of lithium iron phosphate scrap. Over the past year, most recycling and lithium salt companies have deployed lithium iron phosphate recycling production lines. But due to the variety of scrap materials and the unclear pricing standard of lithium element, various pricing benchmarks have been used for lithium element contained in lithium iron phosphate scrap in the market, including those for metallic lithium, battery-grade lithium carbonate, and industrial-grade lithium carbonate. As the prices of lithium metal are not suitable for the new energy market, the prices of industrial-grade lithium carbonate are accepted as the pricing benchmark for lithium elements by the lithium battery recycling industry. This results in a closer linkage between changes in lithium iron phosphate scrap prices and those in lithium carbonate prices.
In order to help the domestic lithium iron phosphate recycling market address the pricing issue and provide a true reflection of the linkage between the price of lithium carbonate and the price of lithium iron phosphate scrap for the recycling market, SMM initiated quotes for lithium iron phosphate battery scrap, electrode, black mass and lithium coefficient on April 3, 2023. The new SMM prices include:
1. Relevant SMM prices of lithium iron phosphate battery pack scrap
- Lithium iron phosphate battery scrap with aluminium shell
- Lithium iron phosphate battery scrap with steel shell
- Soft pack lithium iron phosphate battery scrap
2. Relevant SMM prices of lithium iron phosphate cathode scrap
- Lithium iron phosphate cathode scrap (motive)
- Lithium iron phosphate cathode scrap (energy storage)
- Lithium iron phosphate cathode lithium coefficient
3. Relevant SMM prices of lithium iron phosphate battery scrap black mass
- Lithium iron phosphate battery black mass
- Lithium iron phosphate battery black mass lithium coefficient
- Lithium iron phosphate battery black mass price per 1% Li content
4. Relevant SMM prices of lithium iron phosphate scrap electrode black mass
- Lithium iron phosphate electrode black mass
- Lithium iron phosphate electrode black mass lithium coefficient
- Lithium iron phosphate electrode black mass price per 1% Li content
Guidelines to SMM price assessment methodology
Shanghai Metals Market (SMM) is a completely independent third-party service provider that does not participate in any substantive transaction, and maintains close communication with the buyer or seller of the transaction as a market observer or organiser, and provides relevant service to the market. SMM continuously develops, reviews and revises its methodology by communicating with industry insiders, using the most mainstream product specifications, terms of trade in the industry. SMM attaches equal importance to normal transactions that meet the specifications and standards. SMM reserves the right to exclude any unreliable or unrepresentative price data from its price assessment, in line with this methodology and other related Benchmark governance policies and procedures.
Definition of price
SMM prices of LFP battery scrap are assessed and reported based on the methodology defined in this document. As benchmark prices, they can be referred to by ternary battery scrap traders for their settlement price (including battery pack, pole piece and black mass). The figures reflect the spot prices of LFP battery scrap, LFP battery scrap pole piece and black mass that are the most tradable at the time of publication on each full trading day.
Price rules
Used Lithium Iron-phosphate Aluminum Shell Battery (USD/mt)
Used Lithium Iron-phosphate Steel Shell Battery (USD/mt)
Used Lithium Iron-phosphate Polymer Shell Battery (USD/mt)
Lithium Iron-phosphate Positive Electrode Tablet(power type) (USD/mt)
Lithium Iron-phosphate Positive Electrode Tablet (energy storage type) (USD/mt)
Lithium Iron-phosphate Positive Electrode Tablet Lithium Discount Factor (%)
Lithium Iron-phosphate Battery Black Mass (USD/mt)
Lithium Iron-phosphate Battery Black Mass Lithium Discount Factor (%)
Lithium Iron-phosphate Battery Black Mass Lithium Point (USD/lithium point)
Lithium Iron-phosphate Positive Electrode Tablet Black Mass (USD/mt)
Lithium Iron-phosphate Positive Electrode Tablet Black Mass Lithium Discount Factor (%)
Lithium Iron-phosphate Positive Electrode Tablet Black Mass Lithium Point (USD/lithium point)
Change in methodology
All markets are changeable and SMM is responsible to ensure that the pricing methodology will change in tandem with the market dynamics. Therefore, SMM will conduct regular internal reviews of the methodology based on feedbacks from industrial players. For all potential amendments to the methodology that are substantial but not urgent, SMM will follow a formal process of external consultation. Any major changes to the methodology will be released to invite comments and suggestions from players in the industry at least 28 days before the official announcement, unless affected by emergencies and force majeure factors, such as natural disasters, wars and exchange failures. SMM undertakes to scrutinise all comments on proposed changes in methodology but in some cases may have to carry out the changes anyway against the wishes of some market players. In addition, SMM has a formal process of methodology consultation. SMM is committed to at least one formal consultation per year on the report of the “Prices of LFP battery scrap”. The date of the last consultation held and the deadline by which the SMM committed to hold the next consultation are at the top of the methodology document.
SMM welcomes all relevant players in the industry chain to engage with and help SMM to better serve the enterprises in the new energy industry chain.
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