SMM Analysis: Scrap Prices Fluctuated with Salt Prices, Nickel Continued to Decline Last Week

Last week, the scrap market prices fluctuated. On the ternary material side, nickel sulphate prices slightly decreased, while lithium carbonate prices increased. The rise in lithium prices outpaced the decline in nickel prices, leading to an increase in the prices of ternary pole piece powder and battery powder. However, most hydrometallurgy enterprises are currently operating at low rates or have chosen to suspend operations. The reported purchase prices are usually 1-2 coefficients lower than the transaction prices, and the market transactions remain relatively sluggish. The production of tolling business and self-produced hydrometallurgy producers is relatively stable, and the inquiry activity of some downstream hydrometallurgy enterprises has increased. However, due to the inverted structure of lithium extraction from scrap and the selling price of lithium carbonate, market transactions remain depressed. In summary, in the short term, scrap prices are expected to fluctuate with nickel, cobalt, and lithium prices.

Recent events in the recycling market:

Europe's Largest Lithium Battery Recycling Plant Begins Construction: Recently, German lithium battery recycling company Tozero completed a seed round financing of 11 million euros. The company plans to enhance production by building its first industrial deployment (also known as First of a Kind or FOAK) plant. Currently, Tozero's pilot plant can process 9 mt of lithium-ion battery scrap daily.

10,000 mt Lithium Battery Recycling Integrated Project Settles in Jiangxi: The project is located in Maoping Industrial Park, Yongxin Industrial Park, Ji'an City, Jiangxi Province (within the chemical concentration area). It plans to invest 750.0298 million yuan, covering an area of approximately 68.33 mu (45,552.88 m²). The aim is to establish a comprehensive recycling production system for waste ternary lithium battery powder and nickel-cobalt alloy powder. The main raw materials are externally purchased waste ternary lithium battery powder and nickel-cobalt alloy powder, using hydrometallurgy processes to comprehensively recycle nickel, cobalt, lithium, manganese, copper, tungsten, molybdenum, and other metals.