[SMM Analysis] Review of Recent Price Trends in Waste Battery for Cascade Utilization, 2024.1.20-2025.1.23

SMM, January 23: This week, prices in the cascade utilization market remained stable. In terms of supply, as the Chinese New Year approaches, the production of ESS and power battery cells has slightly decreased, leading to a corresponding reduction in the availability of waste battery cells for cascade utilization. Meanwhile, recent tendering and procurement activities for waste battery cells in public transportation projects across various regions have been scarce, collectively resulting in an overall decrease in market supply. From the demand side, as the Chinese New Year approaches, there are fewer projects requiring actual delivery. Additionally, waste battery cells procured during this period may need to be stored in inventory for at least about a month. Considering safety concerns during holiday storage and potential price drops in post-holiday inventory, demand for waste battery cells has also significantly declined. In terms of actual transactions, the market is primarily driven by just-in-time procurement, with little stockpiling observed. Furthermore, recent policy announcements have led cascade utilization plants to adopt a more cautious stance on future price trends, with a general expectation of price declines. As a result, processing plants and traders are not in a hurry to make purchases before the holiday, generally maintaining a wait-and-see attitude, and market trading activity remains subdued. It is expected that after the holiday, prices for waste battery cells for cascade utilization may continue to fluctuate downward due to the ongoing oversupply situation.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Ying Xu 021-51666707

Yanlin Lü 021-20707875

Yujun Liu 021-20707895

Xiaodan Yu 021-20707870

Zhicheng Zhou 021-51666711

He Zhang 021-20707850