According to SMM research, in August 2023, a total of 43,300 mt of lithium battery scraps were recycled in China (including scrap in the form of battery, pole piece and black mass), and the recycling volume declined 17% MoM. In terms of ternary battery scrap, 2,890 mt of batteries were recycled, along with 3,470 mt of pole piece, as well as 9,590 mt of black mass (including battery powder and pole piece powder). In terms of LFP battery scrap, 8,550 mt of batteries were recycled, along with 10,280 mt of pole piece, as well as 8,140 mt of black mass (including battery powder and pole piece powder). In terms of LCO battery scrap, 130 mt of batteries were recycled, along with 250 mt of black mass (including battery powder and pole piece powder).
As lithium carbonate price was in a downward spiral in August, hydrometallurgy plants were generally bearish towards future lithium carbonate price. Due to limited supply of battery scrap, traders opted to hold back cargoes at low prices. The ask prices of battery scrap traders were beyond what grinding mills and hydrometallurgy plants could accept. Hydrometallurgy plants strongly demanded to lower battery scrap price coefficient due to inventory pressure, unsatisfactory selling price and bearish price outlook. They tried to reduce losses by reducing procurement volume, lowering operating rates, and compressing procurement costs, etc. They hope that cost reduction pressure from battery cell makers could transmitted up the industry chain, thereby driving battery scrap prices to return to a more reasonable level. In August, players in the recycling market were split in their views on future price trend, resulting in muted transactions in the spot market. The upstream were holding back cargoes in hopes of selling them at higher prices in the future, while downstream enterprises were disinclined to purchase at high prices and cut production substantially. In August, the recycling volume of ternary battery scrap, LFP battery scrap and LCO battery scrap stood at 15,950 mt, 26,970 mt and 380 mt respectively. Their share in total recycling volume was 37%, 62% and 1% respectively.
