[SMM Analysis] Lithium Battery Recycling Procurement Continued to Decline in May, Potentially Becoming the Sluggiest of the Year

Published: May 30, 2025 21:42

Save

From an overall data analysis perspective, the market procurement situation in May 2025 declined compared to April 2025. As of April 2025, the total recycling volume (based on black mass) in the SMM recycling market for the month reached 20,592 mt, down approximately 16.2% MoM.

SMM News on May 30:

From an overall data analysis perspective, the market procurement situation in May 2025 declined compared to April 2025. As of April 2025, the total recycling volume (based on black mass) in SMM's recycling market reached 20,592 mt, down approximately 16.2% MoM.

On the demand side, most hydrometallurgical plants opted for a semi-shutdown status amid the continuous decline in nickel, cobalt, and lithium chemical prices. Most ternary and LFP hydrometallurgical plants reduced their procurement volumes this month, only consuming basic inventory. Given the market's pessimistic outlook on subsequent lithium chemical prices, they exercised caution in purchasing LFP black mass, resulting in very sluggish market transactions. It is expected that as hydrometallurgical plant inventories decrease, procurement will gradually resume in June. On the supply side, the psychological selling prices of grinding mills and traders loosened somewhat due to the continuous decline in salt prices, with black mass prices generally following the downward trend of salt prices, albeit at a slower pace. Additionally, some grinding mills, with their current profits still below the surplus line, chose to hold back from selling, awaiting a subsequent market recovery. Market transactions remained sluggish.

From a material perspective, salts such as nickel sulphate, cobalt sulphate, and lithium carbonate continued to decline in May. The price of lithium carbonate fell continuously due to a supply surplus, with industrial-grade lithium carbonate prices once dropping below 60,000 yuan/mt. Amid the current supply surplus, more grinding mills and hydrometallurgical plants are focusing on changes in national policies, such as the US tariff hikes, trade-in policies, and the draft for comments on black mass imports and exports. It is anticipated that prices and recycling volumes in May will fluctuate in response to policy changes and downstream demand.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Xu Ying 021-51666707

Lv Yanlin 021-20707875

Liu Yujun 021-20707895

Yu Xiaodan 021-20707870

Zhou Zhicheng 021-51666711

Zhang He 021-20707850

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

7 hours ago

[SMM News Flash] PLS Group Turns Bullish on Lithium Cycle, Nears FID on Pilgangoora Capacity Doubling

Australia's PLS Group is bullish on the lithium price outlook and is nearing a Final Investment Decision on doubling capacity at its Pilgangoora spodumene operation in Western Australia. CEO Dale Henderson said the P2000 expansion study will be released in the quarter ending December, targeting a doubling of output to 2.0 million tons per year. PLS posted a full-year net profit of A$526 million (US$377 million) for the 12 months to June 30, reversing a prior-year loss, though the result fell short of expectations. Henderson described the current environment as "the next part of the cycle," citing strong demand against constrained supply. Shares rose as much as 8.1% in Sydney on the results. The company said organic expansion remains the priority over dealmaking for now. SMM View: A confirmed FID on P2000 would mark one of the clearest supply-side signals of this cycle, and its downstream effect on grade differentials is the part the earnings release doesn't cover. As SC6 volumes potentially double out of Western Australia, the pricing relationship between Australian and African concentrate SC5.5 and SC5.0 grades moving CIF into China is where the real adjustment will show up first, likely well ahead of any public data catching up. SMM continues to track how offtake counterparties are positioning ahead of this decision and welcomes perspective from traders and converters active in these corridors.

7 hours ago

Zimbabwe's Lithium Export Ban Looms, Only One Plant Ready as Producers Seek Deadline Extension

Zimbabwe's lithium concentrate export ban takes effect 1 January 2027, and only one of the country's sulphate plants is complete Prospect Lithium Zimbabwe's $400 million facility at Arcadia. Sinomine's $500 million facility at Bikita and Yahua's plant at Kamativi remain under construction, while a state-owned project at Sandawana is still at feasibility stage. Producers have requested a deadline extension to mid-2027; government has not confirmed either way. Zimbabwe and Zambia meet in Livingstone in November, six weeks before the deadline. SMM View: Whether the extension is granted is the question every producer in the country is now pricing and it's not one the public record will answer first. Reliable CIF pricing and construction-progress detail out of Bikita and Kamativi remain hard to come by outside direct market contact.

7 hours ago

[SMM News] Lithium Argentina, Ganfeng Finalize PPG Joint Venture; Ganfeng to Invest $180 Million in Lithium Argentina

SMM August 24: Lithium Argentina AG (TSX/NYSE: LAR) and Ganfeng Lithium Group Co., Ltd. have finalized agreements to consolidate their Pozuelos-Pastos Grandes ("PPG") projects in Salta Province, Argentina, into a single joint venture, alongside a $180 million strategic investment by Ganfeng into Lithium Argentina. The PPG JV combines Ganfeng's Pozuelos-Pastos Grandes project with Lithium Argentina's Pastos Grandes and Sal de la Puna projects, targeting 150,000 tpa of lithium carbonate equivalent capacity across three phases. Ganfeng holds 67% and will operate the JV; Lithium Argentina holds 33%. Combined historical investment stands at $1.8 billion, with completion expected in September 2026 under new Dutch holding entity Millennial Lithium B.V. Separately, Ganfeng will subscribe to a $180 million unsecured convertible note, carrying a 4.0% coupon, six-year term, and $12.50 conversion price a roughly 96% premium to Lithium Argentina's five-day VWAP through August 21. Proceeds will retire the company's $259 million convertible debt due January 2027. Upon full conversion, Ganfeng's stake in Lithium Argentina would rise from 9.6% to approximately 16.1%. The deal deepens a partnership already anchoring Cauchari-Olaroz, Argentina's largest lithium brine operation, where Lithium Argentina holds 44.8% and Ganfeng 46.7%. SMM View: The transaction extends Chinese capital's growing footprint in South American brine assets, echoing the consolidation already seen across African spodumene supply. It de-risks Lithium Argentina's near-term maturities while adding fresh LCE capacity to global project pipelines, with implications for offtake competition and CIF China pricing across both brine and hard-rock lithium chains.

7 hours ago