[SMM Weekly Review] Second-Life Battery Cells' Rally Curbed, Retired Battery Market Remains Sluggish (September 8–11, 2025)

SMM September 11 News:

Second-life Application This Week:

This week's market data shows that supply side, affected by lithium carbonate and cathode material price fluctuations, new battery cell prices rose first; meanwhile, with the arrival of the September-October peak season for auto sales, enterprise battery cell inventory-to-sales ratio declined, production increased simultaneously, and this trend further transmitted to the second-life recycling sector. Previously, the continuous decline in lithium carbonate prices strengthened enterprises' reluctance to budge on prices, with some enterprises hoarding goods, while current second-life recycling demand remains stable, ultimately leading to a situation where some popular models in the market are quoted but not traded.

In the end-of-life battery sector, as the current market mainly consists of power batteries installed earlier that are still in normal service cycles and have not yet entered the large-scale retirement phase; and second-life batteries, limited by their characteristics, cannot be stored long-term, the combination of these two factors results in lukewarm trading sentiment in the current end-of-life battery market, and the stickiness of lithium carbonate price fluctuations has also weakened. Despite lithium carbonate prices continuing to decline, ternary B-grade prices in the second-life market showed a counter-trend change this week, with a 3% MoM increase compared to the beginning of the month.

Overall, second-life battery cell prices are expected to show some increase in the future, but currently most enterprises still operate with low inventory. To avoid price fluctuation risks, procurement focuses on meeting immediate production needs, which will limit the upside room for second-life battery cell prices.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lu Yanlin 021-20707875

Zhou Zhicheng 021-51666711

Lei Yue 021-20707873