[SMM Analysis] Procurement volume in the lithium battery recycling market rose MoM in July

SMM August 1 News:

This week's hydrometallurgy recycling situation:

From an overall data analysis perspective, market procurement in July 2025 showed a further upward trend compared to June, with an MoM increase of around 20%. The downstream demand side exhibited a trend of increased demand: This month, due to the favorable performance of lithium carbonate prices, most LFP battery hydrometallurgy recycling plants increased their production or resumed production. The volume of recycled lithium chemicals increased by approximately 10% MoM. This month, ternary hydrometallurgy recycling plants also conducted normal procurement due to the favorable performance of cobalt sulphate and lithium carbonate prices. The production of recycled nickel salts increased by around 7%, and cobalt salts increased by 40%. The significant MoM increase in recycled cobalt salts was mainly due to 1) the small production base of recycled cobalt salts and 2) the current economic advantage of using recycled materials, especially scrap LCO battery, to produce cobalt sulphate compared to other raw materials like MHP. Currently, recycled cobalt sulphate accounts for approximately 29% of the total cobalt sulphate production. On the supply side, the expected selling prices of grinding mills and traders gradually transmitted to the recycling end as salt prices strengthened this month. Black mass prices also followed the salt price increase during the same period, and the overall market trading sentiment became more active compared to last month. It is expected that hydrometallurgy recycling procurement will increase slightly next month, with an MoM increase of around 7%.

This week, the prices of salt products such as cobalt sulphate and lithium carbonate increased. Among them, lithium carbonate prices fell after an initial increase, showing an overall oscillatory trend. This week, the nickel and cobalt coefficients of ternary and LCO black mass remained basically flat, especially the lithium coefficient, which fell slightly after the decline in lithium carbonate prices. The prices per % lithium of LFP black mass remained basically flat. Taking ternary black mass as an example: Currently, the nickel and cobalt coefficients of ternary pole piece black mass are 72.5-75%, and the lithium coefficient is 70-72%. The nickel and cobalt coefficients of ternary battery black mass are 70-72.5%. On the current demand side, most LFP battery hydrometallurgy recycling plants maintain toll processing, and the price increase of lithium carbonate this month has driven the procurement sentiment of some customers, leading some LFP battery hydrometallurgy recycling enterprises to resume production, resulting in a significant increase in the production of recycled lithium carbonate this month. In recent days, the spot cost of producing lithium carbonate from LFP black mass has begun to generate profits. On the demand side of ternary hydrometallurgy recycling, most plants maintain normal procurement and appropriately increase procurement with the salt price increase. On the supply side, the psychological selling prices of grinding mills and traders have increased with the continuous rise in salt prices, especially lithium carbonate prices. Black mass prices have basically followed the continuous price increase of salt products, and market trading has been sluggish. On the cost side, with the recent rebound in salt prices, the profit of externally purchasing scrap LCO battery to extract salts has returned above the surplus line. However, the profits of ternary and LFP battery hydrometallurgy recycling remain below the surplus line.

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