In September, the domestic lithium battery recycling market was down 7% MoM, signaling a downturn in the recycling industry

According to SMM research, the total amount of waste lithium batteries recycled in China in September 2023 was 40,270 mt, including batteries, pole pieces, and black mass, down 7% MoM.

Breaking down the recycling volume by battery types, in September 2023, a total of 14,380 mt of ternary batteries were recycled, 25,440 mt of LFP batteries, and 450 mt of LCO batteries. Ternary batteries accounted for 36% of the total, LFP batteries accounted for 63%, and LCO batteries accounted for only 1%.

Among the ternary battery waste, 2,470 mt were batteries, 3,640 mt were pole pieces, and 8,270 mt were black mass (including battery powder and pole piece powder). Among the LFP waste, 7,890 mt were batteries, 10,600 mt were pole pieces, and 6,950 mt were black mass (including battery powder and pole piece powder). Among the LCO waste, 140 mt were batteries, and 310 mt were black mass (including battery powder and pole piece powder).

The sluggish and subdued situation in the recycling market further intensified in September. Both buyers and sellers continued to engage in a tug-of-war. Wet-process factories remained conservative in purchasing waste materials, lacking confidence in the future price trend and demand for lithium carbonate. As a result, they approached receiving shipments with caution. The market sought pole pieces, rolled battery cells, and other scarce sources, with frequent requests for purchase. However, due to mismatched prices and conflicting expectations, actual transactions were scarce.

Battery grinding mills showed relatively more positive buying sentiment compared to wet-process factories. However, they also faced the awkward situation of having no available materials to process and a reverse relationship between prices and black powder prices. If they purchased at the prevailing market prices for nickel-cobalt-lithium salt, upstream suppliers still showed a willingness to hold onto their stocks. Some upstream traders adopted a wait-and-see approach, anticipating the arrival of the traditionally active October market. However, some small powdering factories had already halted their operations in September and shifted their focus to battery trading.

In September, wet-process factories reduced or suspended their production, depleting their inventories. The midstream and downstream segments of the recycling industry were unable to find suitable-priced waste materials, leading to an overall stagnant situation in the recycling market.