【SMM analysis】September Market Report: Recycled Battery Materials Procurement Rises 8.18% on Robust Demand

In September, market procurement volume reached 28,100 tons, a month-on-month increase of approximately 8.18%, reflecting an overall active trend. The continuous release of downstream demand was the primary driver: on one hand, most lithium iron phosphate (LFP) wet-process plants maintained high production levels amid generally stable lithium carbonate prices, driving the recovery of lithium salt to about 8,000 tons in September, a month-on-month increase of about 9.7%; on the other hand, ternary wet-process plants saw a significant rise in cobalt sulfate prices due to supply-side influences, while lithium carbonate prices remained stable, further boosting procurement enthusiasm. This led to the recovery of nickel salt production reaching 5,500 metal tons (a month-on-month increase of about 3.32%) and cobalt salt production reaching 1,380 metal tons (a month-on-month increase of 1.1%).

At the same time, the proportion of recycled cobalt salt in raw material cobalt sulfate is further increasing. Using recycled materials, particularly lithium cobalt oxide (LCO) scrap, to produce cobalt sulfate currently offers a significantly expanded economic advantage compared to other raw materials.

On the supply side, quotations from powder manufacturers and traders continued to rise alongside nickel, cobalt, and lithium salt prices, with black powder prices also following the upward trend. Overall market trading sentiment was more heated compared to the previous month.

Regarding the market outlook, expectations are divided: some predict that next month's wet-process procurement scale will continue to increase to 30,000 tons, a month-on-month growth of about 6.76%; others expect procurement scale to stabilize at around 28,000 tons, remaining largely flat month-on-month.