【SMM analysis】August 2025 Market Procurement Trends and Recycling Dynamics

Overall, market procurement conditions in August 2025 continued to improve compared to June and July, showing a month-on-month increase of approximately 15%. Downstream demand generally strengthened: due to favorable lithium carbonate price trends, most lithium iron phosphate (LFP) hydrometallurgical plants increased production or resumed operations this month, leading to a 10% to 15% month-on-month rise in recycled lithium salt volumes. For ternary hydrometallurgical plants, stable prices of cobalt sulfate and lithium carbonate supported normal procurement activities. While recycled nickel salt production increased by about 10%, cobalt salt production experienced a slight month-on-month decline.Recently, recycled cobalt salt has accounted for a relatively high proportion of raw material cobalt sulfate supply. This is primarily due to two factors: first, the production base of recycled cobalt salt is inherently small; second, using recycled materials (especially lithium cobalt oxide waste) to produce cobalt sulfate is currently more economical compared to using raw materials like MHP (Mixed Hydroxide Precipitate). Recycled cobalt sulfate now constitutes 29% of total cobalt sulfate production.

On the supply side, the pricing expectations of powder processing plants and traders have gradually transmitted to the recycling sector alongside strengthening salt prices. The prices of black powder have largely moved in sync with the rising salt prices, and overall market trading sentiment has become more active compared to last month. It is anticipated that hydrometallurgical procurement scale will see a slight increase next month, with an estimated month-on-month growth of around 7%.