【SMM analysis】Recycling Market Procurement and Output Surge MoM in March

According to SMM research, as of March 2025, the overall recycling volume in the SMM-monitored market (black powder basis) rose by approximately 28.0% month-on-month (MoM) and 33.9% year-on-year (YoY). Driven by steady growth in demand from the power and energy storage sectors, both MoM and YoY metrics showed improvement, with recycling activity increasing significantly.

By material type, ternary material waste (converted to black powder basis) climbed by around 40.2% MoM and 53.0% YoY, while lithium iron phosphate (LFP) waste (black powder basis) grew by roughly 19.3% MoM.

Procurement Dynamics
Market procurement in March 2025 outperformed February 2025. On the demand side, production in downstream power and energy storage segments expanded steadily. Most hydrometallurgical enterprises saw notable inventory depletion after the Lunar New Year, leading to heightened procurement activity. Longer working days in March further bolstered market recovery.

On the supply side, battery manufacturers maintained firm pricing strategies. Prices for nickel, cobalt, and lithium salts rose proportionally early in the month, with battery makers and traders quickly adjusting. Despite a gradual decline in salt prices by mid-to-late March, battery and powder processing plants held prices firm, leveraging elevated nickel and cobalt costs to sustain high scrap material pricing.

Price Trends
Cobalt sulfate prices surged in early-to-mid March due to export restrictions on Congolese cobalt salts, reinforcing MHP sellers’ price resilience. This pushed up nickel sulfate costs, driving price increases for the same period. In contrast, lithium carbonate prices dipped by mid-to-late March amid persistent oversupply.

Market Transactions
Most powder processors and hydrometallurgical enterprises adopted cautious trading stances due to uncertainties in future battery cell demand and expectations of lower nickel, cobalt, and lithium salt prices.