SMM Analysis: Sellers And Buyers In Lithium Battery Recycling Market Remain In A Stalemate

Published: May 31, 2023 13:37

Source: SMM

Save

SHANGHAI, May 31 (SMM) – After lithium carbonate prices have stabilised recently, the back-and-forth price negotiations between upstream and downstream enterprises in the lithium battery recycling market intensified. Traders were in no hurry to sell. Ternary battery pole piece scrap was mostly quoted at a coefficient of 76-79% on a tax-included basis. Considering cost and gross profit, hydrometallurgy smelters insisted on 70-73%. Some buyers settled for 75% due to rigid demand.

LFP battery pole piece scrap was offered at 12,500 yuan/mt for 1% of lithium content, while the counter offers of hydrometallurgy smelters were 11,000 yuan/mt, and the actual transaction price was 12,000 yuan/mt after both sides made compromises.

Traders preferred to sell battery scrap to other traders rather than smelters. Some small battery scrap crushing plants sold pole piece scrap on hand out of fears that black mass prices would drop in the future.

Due to the low operating rates of battery cell makers in the first quarter, battery scrap available in the recycling market is estimated to be merely 3,000-5,000 mt, which is far from enough to meet the demand of hydrometallurgy smelters. Thus, traders held offers firm.

Market review

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

In July 2026, procurement volume of hydrometallurgical black mass fell 6% MoM, with sluggish transactions and a focus on destocking [SMM Analysis]

[July 2026 Hydrometallurgical Black Mass Procurement Volume Down 6% MoM, Sluggish Transactions and Destocking Dominated] According to SMM's latest survey data, in July 2026, the scrap procurement volume (in black mass equivalent terms) of China's mainstream hydrometallurgical plants fell approximately 6% MoM from the June high. However, as market conditions stabilize and demand expectations improve, August procurement volume is expected to rebound 10%. Looking back at the July market, both supply and demand sides and price gaming showed notable structural divergence. The expectation misalignment between grinding enterprises and hydrometallurgical plants was the core factor leading to sluggish market transactions.

2 hours ago

Korea Zinc Was Mentioned in U.S. Critical Minerals Supply Chain Discussion

According to Roll Call and other U.S. congressional media outlets on August 10, President Trump held a roundtable meeting with about 200 mining industry officials at the State Department in Washington, D.C., on August 7 local time to discuss ways to strengthen the U.S. critical minerals supply chain. During the meeting, Secretary Lutnick directly mentioned Korea Zinc’s USD 7.4 billion U.S. critical minerals smelter project as a key example of supply chain investment by the U.S. government, emphasizing the need for cooperation with allied countries.

2 hours ago

3 hours ago

Sinomine Resource Group: Subsidiary’s Two High-Purity Lithium Chemicals Production Lines Resume Production

[Sinomine Resource Group: Subsidiary’s Two High-Purity Lithium Chemicals Production Lines Resume Production] On August 10, Sinomine Resource Group announced that its wholly-owned subsidiary Jiangxi Sinomine Lithium Industry, due to a mismatch between lithium concentrates transportation and production scheduling, temporarily shut down the "Annual 30,000 mt High-Purity Lithium Chemicals" and "Annual 35,000 mt High-Purity Lithium Chemicals" production lines for maintenance starting from June 30, 2026. With the maintenance now completed, the company has decided to resume production at the "Annual 30,000 mt High-Purity Lithium Chemicals" line on August 10, 2026, and plans to gradually resume production at the "Annual 35,000 mt High-Purity Lithium Chemicals" line in mid-August 2026.

3 hours ago