【SMM analysis】August 2025 Battery Metal Recycling Production Data and Market Dynamics

In August 2025, the production volume of recycled lithium carbonate reached 7,290 metric tons, marking a month-on-month increase of 14%. This growth is primarily attributed to the favorable performance of lithium carbonate prices in the first and middle halves of the month, which prompted some recycling operations to resume production and engage in hedging activities. It is anticipated that the production schedule for recycled lithium carbonate in September will continue to show a slight increase, with an expected month-on-month growth of around 5%. Meanwhile, the production of recycled nickel sulfate stood at 5,045 metal tons, also reflecting a 14% month-on-month increase. This rise is largely due to the improved economic viability of recycled materials, and a slight increase is expected to persist into September, with an estimated growth of 3.5% to 4%.

In contrast, the production of recycled cobalt sulfate experienced a decline, totaling 1,355 metal tons in August, down 2% month-on-month. This reduction, amounting to approximately 30 metal tons, is primarily attributed to technical upgrades and temporary production halts at several facilities. However, production levels at most other cobalt salt producers remained stable compared to the previous month. For September, a slight recovery is anticipated, with a projected month-on-month increase of around 4% in recycled cobalt sulfate production.

Regarding market prices, cobalt sulfate prices continued to rise this week, while nickel sulfate prices also saw a modest increase. In contrast, the prices of salt products such as lithium carbonate continued to decline. The coefficients for nickel and cobalt in black powder from ternary and lithium cobalt oxide sources saw a slight uptick due to rising salt prices, whereas the lithium coefficient declined after an initial drop. The lithium point price for lithium iron phosphate (LFP) black powder fluctuated within a range this week.

Taking ternary black powder as an example, the current nickel and cobalt coefficients for ternary cathode black powder stand at 73–75%, unchanged from the previous week. Meanwhile, the lithium coefficient ranges between 68% and 71%, down 1% week-on-week. The price for LFP cathode black powder is currently between 2,700 and 2,950 yuan per lithium point, while battery black powder is priced at 2,450–2,650 yuan per lithium point, reflecting a decrease of 100 yuan per lithium point compared to last week.

With the ongoing decline in lithium carbonate prices, ternary recycling hydrometallurgical enterprises have largely adopted separate pricing for nickel, cobalt, and lithium coefficients. Typically, the lithium coefficient is priced 4–5 percentage points lower than the nickel and cobalt coefficients. In the LFP hydrometallurgical sector, most plants continue to operate on a tolling basis. However, due to fluctuating lithium carbonate prices, some upstream powder processing companies have suspended quotations amid market uncertainty. Overall, market transactions remain highly sensitive to movements in lithium salt prices.