From an overall data perspective, at the end of August, the rigid demand in the second-life application market remained stable, with domestic and overseas markets receiving some support due to the policy transition period. In early August, the sales momentum of new energy vehicles gradually faded, but the overall market supply increased MoM, with the supply of end-of-life batteries remaining stable. The demand from end-use applications was mediocre, and it is expected that future demand growth will be limited. The previous rise in spot lithium carbonate prices was passed on to terminal battery cells, leading to a slight increase in battery cell prices, and second-life battery cell prices also rose slightly as a result. Recently, spot lithium carbonate prices have fallen, but the price transmission takes time, so second-life prices have remained unchanged recently. The overall market basically maintained a balance between supply and demand, with companies trading according to market conditions, and it is expected that the increase in second-life battery cell prices will be limited. Market transactions remained sluggish, with some second-life battery producers continuing to operate with low inventory, and purchases mainly driven by essential needs.

[SMM Analysis]Multiple Regions Initiate Cleanup of Irregular Tax Rebates, Secondary Aluminum Market Hit Again

In terms of discounts, the settlement discount for ternary cathode has not changed much recently. The increase in the upstream sulphuric acid coefficient has yet to be passed on to the downstream, but it is expected that the % payable may rise in September. On the demand side, as production schedules peaked noticeably in August, there might be a slight pull back in September.

Cobalt sulphate prices continued to rise this week, while nickel sulphate prices also rose slightly. However, the prices of salt products such as lithium carbonate continued to fall. This week, despite the increase in salt prices, the nickel and cobalt payable indicators for ternary, LCO black mass, and other materials rose slightly, while the lithium payable indicator continued to decline after a drop. The weekly prices of LFP black mass per % lithium were largely stable with fluctuations. Taking ternary black mass as an example: currently, the nickel and cobalt payable indicator for ternary pole piece black mass is 73-75%, remaining flat WoW, while the lithium payable indicator is 68-72%, down 3% WoW. The price of LFP pole piece black mass is 2,800-3,000 yuan/mtu, and the price of battery black mass is 2,550-2,800 yuan/mtu, down 125 yuan/mtu MoM.

[SMM Analysis]Secondary Aluminum Market Remains Strong in Short Term Focus on Demand Recovery and Policy Implementation

The model launched with two variants: a long-range two-wheel drive and an extended-range all-wheel drive, with starting prices of 299,900 yuan and 329,900 yuan, respectively.

Demand side, as the peak season approaches, demand from various producers generally improves. It is expected that in September, there will be further room for an increase in the settlement discount for ternary cathode precursor.