From an overall data perspective, at the end of August, the rigid demand in the second-life application market remained stable, with domestic and overseas markets receiving some support due to the policy transition period. In early August, the sales momentum of new energy vehicles gradually faded, but the overall market supply increased MoM, with the supply of end-of-life batteries remaining stable. The demand from end-use applications was mediocre, and it is expected that future demand growth will be limited. The previous rise in spot lithium carbonate prices was passed on to terminal battery cells, leading to a slight increase in battery cell prices, and second-life battery cell prices also rose slightly as a result. Recently, spot lithium carbonate prices have fallen, but the price transmission takes time, so second-life prices have remained unchanged recently. The overall market basically maintained a balance between supply and demand, with companies trading according to market conditions, and it is expected that the increase in second-life battery cell prices will be limited. Market transactions remained sluggish, with some second-life battery producers continuing to operate with low inventory, and purchases mainly driven by essential needs.

In terms of discounts, the settlement discount for ternary cathode has not changed much recently. The increase in the upstream sulphuric acid coefficient has yet to be passed on to the downstream, but it is expected that the % payable may rise in September. On the demand side, as production schedules peaked noticeably in August, there might be a slight pull back in September.

Cobalt sulphate prices continued to rise this week, while nickel sulphate prices also rose slightly. However, the prices of salt products such as lithium carbonate continued to fall. This week, despite the increase in salt prices, the nickel and cobalt payable indicators for ternary, LCO black mass, and other materials rose slightly, while the lithium payable indicator continued to decline after a drop. The weekly prices of LFP black mass per % lithium were largely stable with fluctuations. Taking ternary black mass as an example: currently, the nickel and cobalt payable indicator for ternary pole piece black mass is 73-75%, remaining flat WoW, while the lithium payable indicator is 68-72%, down 3% WoW. The price of LFP pole piece black mass is 2,800-3,000 yuan/mtu, and the price of battery black mass is 2,550-2,800 yuan/mtu, down 125 yuan/mtu MoM.

Demand side, as the peak season approaches, demand from various producers generally improves. It is expected that in September, there will be further room for an increase in the settlement discount for ternary cathode precursor.

[Weekly SMM Review] This week, the spot price of cobalt intermediate products continued to rise. Overseas traders were optimistic about the upward trend, with overseas market prices continuously increasing and a small volume of transactions in the domestic market at $13.3/lb. On the supply side, major miners maintained their stance on refusing to budge on prices, while traders continued to raise quotes and control the pace of shipments. On the demand side, the increase in cobalt salt prices was slower than that of intermediate products. Smelters maintained a just-in-time procurement rhythm, with few transactions above $13.1/lb. Some companies, due to severe losses from production costs, sold off raw material inventory in the market. Overall, influenced by the DRC's policy extension, China's cobalt intermediate products will continue to face raw material shortages in the future, providing upward momentum for prices. However, during this process, attention should be paid to how the rise in raw material prices may suppress downstream demand.

[SMM Weekly Review] This week, the spot price of cobalt sulphate continued to rise. On the supply side, with raw material prices continuously increasing, smelters and traders refused to budge on prices. Cobalt intermediate product smelter quotations remained at 54,000~55,000 yuan/mt, while MHP and recycling companies raised their quotations to 52,500~53,500, and traders increased their quotations to 51,000~52,000 yuan/mt. On the demand side, downstream purchasing inquiries remained strong this week, with some precursor and Co3O4 companies closing deals at 52,000 yuan/mt, and a small volume of high-grade cobalt sulphate traded at 53,000 yuan/mt. It is expected that under the influence of continuously rising raw material costs, the price of cobalt sulphate will likely maintain a relatively strong trend in the short term. However, the extent of the increase still depends on the actual purchase situation downstream. If there is a large-scale procurement by downstream buyers, the rise in cobalt sulphate prices will be smoother.

[This Week's SMM Review] Spot prices of refined cobalt rebounded and stabilized this week. On the supply side, smelters continued to reduce production due to ongoing raw material shortages and increasing losses, maintaining long-term contract supplies while actively refusing to budge on prices. After futures prices in the domestic market stabilized, traders paused price cuts and slightly raised their quotes. On the demand side, as the summer break neared its end, some downstream producers began purchasing in the market. However, high cobalt prices compressed their profit margins, leading to relatively weak demand. Coupled with still high social inventory, downstream buyers were reluctant to accept higher prices, resulting in limited actual transactions. In the future, under the influence of raw material shortages, rising prices of cobalt intermediate products and cobalt salts are expected to drive up refined cobalt prices. However, high inventory levels and relatively sluggish demand will likely pose a constraint on price increases.

[SMM Lithium Electrolyte Market Weekly Review: Electrolyte Prices Rose This Week (2025.8.25-8.28)] From August 25 to August 28, 2025, electrolyte prices rose. Considering the market supply and demand situation and cost side conditions, it was expected that in the short term, the price support for electrolytes would remain strong.