[SMM Analysis] Lithium Battery Recycling Market Procurement Volume Rose MoM in August

SMM August 29:

Overall, market procurement in August 2025 continued to improve compared to June and July, with an increase of approximately 15% MoM. Downstream demand generally rose: due to favorable lithium carbonate price trends, most LFP battery hydrometallurgy recycling plants increased production or resumed operations this month, with the volume of recycled lithium chemicals increasing by 10% to 15% MoM. Ternary hydrometallurgy plants also maintained normal procurement as cobalt sulphate and lithium carbonate prices remained relatively stable, with nickel salt production from the recycling end growing by about 10%, though cobalt salt saw a slight decrease MoM. Recently, recycled cobalt salt has accounted for a relatively high proportion in raw material cobalt sulphate, primarily because the production base of recycled cobalt salt is relatively small, and using recycled materials (especially scrap LCO battery) to produce cobalt sulphate is more economical compared to raw materials like MHP. Currently, recycled cobalt sulphate accounts for 29% of total cobalt sulphate production. On the supply side, quotations from grinding mills and traders are expected to gradually transmit to the recycling segment as salt prices strengthen, with black mass prices largely rising in sync with salt prices. Overall market trading sentiment was more active MoM. Procurement scale for hydrometallurgy is expected to increase slightly next month, with a MoM growth of about 7%.

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