[SMM Analysis][SMM Analysis] China imported 619,000 mt of spodumene in August, down 17.5% MoM, equivalent to 56,000 mt LCE.

Australia's Core Lithium has announced the completion of a comprehensive restart study for its Finniss Lithium Project, showcasing significant cost reductions and operational improvements in its FY2025 report. This strategic repositioning aims to transform the Finniss project into a low-cost operating asset with a mine life of 20 years. By optimising mining methods, acquiring key infrastructure, and upgrading the processing plant, the company achieved major improvements: a 40% reduction in mining costs and a 33% drop in processing costs. This shift is expected to restore the Finniss project's cost competitiveness among global spodumene producers.

Malaysia is positioning itself as Southeast Asia’s next hub for EV battery recycling, with government policy, private investment, and global demand converging to drive growth. From early pilots to large-scale projects and new regulations, Malaysia’s black mass industry is moving rapidly toward commercialization, aiming to build capacity, strengthen ESG standards, and compete with China in the regional supply chain.

ExxonMobil's competitive edge lies in its use of synthetic graphite. This lab-engineered carbon material is produced from petroleum byproducts or other feedstocks rather than being mined. Compared with natural graphite, synthetic graphite offers higher purity and consistency. Its production is less labor-intensive, scalable through ExxonMobil’s refineries, and more environmentally friendly due to lower land use and emissions. This material outperforms mined alternatives in conductivity and stability, directly enhancing battery efficiency and reliability. Following its acquisition of Superior Graphite’s assets in September 2025, ExxonMobil aims to expand domestic production capacity in the U.S., reduce reliance on imports, and support local EV manufacturing.

According to the project restart strategy, the Finniss lithium project holds 10.7 million tonnes of ore reserves (averaging 1.29% Li₂O) and 48.5 million tonnes of mineral resources (averaging 1.26% grade). A restart study released in May 2025 indicates that the project can achieve an annual production capacity of 205,000 tonnes of spodumene concentrate (SC6), with FOB operating costs estimated at A$690-785 per tonne. The operation will adopt a purely underground mining method across three orebodies—BP33, Grants, and Carlton—with BP33’s mining cost projected at just A$63-72 per tonne.

The ASEAN recycling sector is facing growing pressure from escalating U.S. and China trade tensions, as Washington’s reciprocal tariff regime compels Southeast Asian countries to tighten rules of origin, crack down on Chinese transshipments, and strengthen customs enforcement, with Vietnam, Thailand, and Malaysia among the most affected. While these measures aim to safeguard U.S. market access, they also raise compliance costs and accelerate supply chain shifts across the region. From a new energy perspective, the impact is deeper as the U.S. tariffs are fragmenting the global black mass market, with trade flows becoming increasingly regional. Although China opened imports of black matter in August 2025, the role of ASEAN as a convenient transshipment hub is diminishing due to the impact of regulatory uncertainties. This poses challenges such as rising costs, slow progress in battery recycling, and potential sanctions for recyclers and importers, all of which may reshape the geopolitics of clean energy and the global recycling supply chain.

Recently, Germany’s revomet GmbH and China’s CNGR Advanced Material officially established a joint venture, marking an important step forward in China-Europe cooperation in battery recycling and critical material supply. This collaboration not only combines the technological and resource strengths of both parties but also reflects the complexity and necessity of cross-border coordination amid the global reshaping of the new energy industry chain.

According to the latest data from the General Administration of Customs, in July 2025, fruit shell charcoal imports amounted to 11,092.3 mt, down 3% MoM and 31% YoY. The average import price of fruit shell charcoal in June was $653.97/mt. In May, the average import price was $652.95/mt, with the average import price remaining flat MoM but still at a historically high level.

China imported 750,000 tonnes of spodumene in July, up 30.4% month-on-month—equivalent to roughly 67,000 tonnes of lithium carbonate (LCE).

China’s lithium battery recycling industry is entering a key adjustment phase. Since August 1, “black mass” from spent lithium batteries has been officially recognized as a renewable raw material and unified under customs code 382499996. The new rules are stricter, setting higher performance requirements, banning mixed packaging, requiring double-layer packaging, and mandating strict inspections. Non-compliant batches face return shipments. On the market side, the sector is challenged by overcapacity, low utilization (around 30%), intense price competition, and shrinking profit margins. In response, companies are cutting staff, halting or reducing production, lowering processing fees, improving recovery rates, and shifting focus to black mass and smelting feedstock. At the same time, safety risks (such as LFP black mass dust hazards), long customs clearance cycles, and technical bottlenecks (like defluorination) remain significant hurdles. Despite these challenges, the industry still shows potential. New chemical processes can achieve nearly 100% recovery, while long-term demand from new energy vehicles and energy storage provides strong support. Industry experts and SMM emphasize that unified pricing, simplified customs procedures, enhanced workplace safety, and technological upgrades are crucial for sustainable development. Although ASEAN-sourced black mass is cheaper, it generally has lower quality and lower payable rates, with supply dominated by NCM black mass and limited LFP resources.

When “mining” no longer takes place in remote valleys but along the recycling lines of urban factories, we may be witnessing a profound shift in the paradigm of resource utilization.