[SMM Weekly Review] Second-Life Application: Price Stability Amid Supply and Demand and Cost Dynamics, 2025.9.01-2025.9.04

SMM September 4 News:

Second-life application situation this week:

From an overall data perspective, the supply side saw both the EV market and ESS enter a phase of demand growth by the end of August. The EV market is preparing in advance for the September-October peak season auto sales surge, while also meeting the stockpiling needs of automakers to boost year-end sales, leading to an increase in upstream power battery cell production. However, the total volume of end-of-life batteries on the demand side remains stable and has not increased in tandem with the rise in power battery cell production. This is mainly because the previously installed power batteries are still within their normal service life and have not yet entered the large-scale retirement phase in significant numbers.

Recently, lithium carbonate prices have declined, which theoretically should alleviate cost pressure on second-life battery cells. However, due to the time lag in price transmission down the industry chain and the relatively stable supply-demand relationship in the second-life application market, upstream battery cell manufacturers remain reluctant to budge on prices for second-life battery cells. These two factors offset each other, and it is expected that in the short term, the prices of second-life battery cells will remain relatively stable.

In summary, it is anticipated that the upside room for second-life battery cell prices will be limited. Currently, most companies are maintaining a low inventory operational model to avoid price fluctuation risks, focusing primarily on meeting immediate production needs in the procurement process.

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

Lei Yue 021-20707873