[SMM Weekly Review] The LFP prices per % lithium in the disassembly recycling market rebounded slightly this week (July 14-17, 2025)

SMM News on July 17:

Hydrometallurgy recycling situation this week:

This week, prices of cobalt sulphate, lithium carbonate, and other salt products rose slightly, while nickel sulphate prices oscillated, with a slight decline driven by the downward trend in nickel prices this week. This week, the nickel and cobalt coefficients for ternary and LCO black mass remained basically stable, while the lithium coefficient rose slightly. The lithium prices per % lithium for LFP black mass also continued to rise. Currently, the lithium prices per % lithium for LFP pole piece black mass range from 2,200 to 2,350 yuan/mtu, and for LFP battery black mass, they range from 2,000 to 2,200 yuan/mtu, with prices rising by 50 yuan/mtu WoW. Taking ternary black mass as an example: the current nickel and cobalt coefficients for ternary pole piece black mass range from 71.5% to 74%, and the lithium coefficient ranges from 68% to 70.5%. The nickel and cobalt coefficients for ternary battery black mass range from 69% to 71%. On the demand side, LFP hydrometallurgy plants remain in a semi-shutdown state, with most maintaining toll processing. The recent rise in lithium carbonate prices has boosted the purchasing sentiment of some clients, but currently, the profits from LFP hydrometallurgy lithium extraction remain below the surplus line. Moreover, with the upcoming relaxation of black mass imports and exports next month, the supply of LFP black mass is expected to remain low in imports due to the imperfect overseas LFP recycling system and the lack of economic viability for lithium extraction in the short term. On the demand side for ternary hydrometallurgy, most first-tier and second-tier ternary hydrometallurgy plants maintain normal purchasing and appropriately increase their purchasing coefficients in line with salt prices. However, some third-tier and fourth-tier hydrometallurgy enterprises have suspended their recycling production lines, and overall market transactions remain sluggish. On the demand side for LFP hydrometallurgy, most LFP hydrometallurgy plants are basically in a semi-shutdown state, only engaging in partial toll processing and not conducting external purchases. On the supply side, the psychological selling prices of grinding mills and traders have loosened somewhat with the continuous rise in salt prices, and black mass prices have basically followed the trend of rising salt prices. Market transactions remain sluggish. On the cost side, with the recent rebound in salt prices, the profits from externally purchasing LCO black mass for salt extraction have returned above the surplus line, except for top-tier integrated hydrometallurgy plants. However, the profits from ternary and LFP hydrometallurgy still remain below the surplus line. The profits from grinding are slightly better than those from hydrometallurgy, but the profits from grinding at some small and medium-sized plants continue to be negative.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875

Zhou Zhicheng 021-51666711