[SMM Analysis] Lithium Battery Recycling Market Procurement Volume Continued to Rise MoM in September

SMM Oct. 27:

Market procurement volume in September was 28,100 mt, up about 8.18% MoM, showing overall active momentum. Sustained release of downstream demand was the main driver: on one hand, most LFP battery hydrometallurgy recycling plants maintained high output against the backdrop of generally stabilizing lithium carbonate prices, driving the volume of recycled lithium chemicals to about 8,000 mt in September, an increase of about 9.7% MoM; on the other hand, ternary hydrometallurgy plants saw further improved procurement enthusiasm as cobalt sulphate prices rose significantly due to supply-side influences while lithium carbonate remained stable, driving nickel salt production from recycling to 5,500 mt in metal content (up about 3.32% MoM) and cobalt salt production from recycling to 1,380 mt in metal content (up 1.1% MoM).

Meanwhile, the proportion of recycled cobalt salts in raw material cobalt sulphate is further increasing. Using recycled materials, especially scrap LCO battery, to produce cobalt sulphate currently offers significantly expanded economic advantages compared to other raw materials.

Supply side, quotations from grinding mills and traders continued to rise following nickel, cobalt, and lithium chemical prices, with black mass prices also increasing in tandem, and overall market transaction sentiment was hotter than last month.

For the outlook, expectations are divided: some predict that hydrometallurgical procurement scale will continue to increase to 30,000 mt next month, up about 6.76% MoM; other views expect the procurement scale to remain stable at around 28,000 mt, basically flat MoM.

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