【SMM Analysis】Weekly Battery Raw Material Price Update: Lithium Salts Drive Shifts in Recycling Sector

This week, the prices of salt products such as cobalt sulfate and nickel sulfate remained stable, while the price of lithium carbonate also began to rise steadily due to solid demand and other fundamental factors. With the increase in lithium salts, the lithium coefficients for ternary and lithium cobalt oxide (LCO) black mass have seen slight increases, though the discount coefficients for nickel and cobalt remained stable for now. Meanwhile, the lithium point price for LFP black mass rose this week in line with the increase in lithium salt prices. Taking LFP electrode black mass as an example, the current price is 2,900–3,100 CNY per lithium point, up by 150 CNY per lithium point compared to the previous period.

For ternary black mass, the nickel-cobalt coefficient currently stands at 75.5–76%, unchanged from last week, while the lithium coefficient ranges from 71% to 74%, showing an increase compared to the previous period.

On the profitability front, the production of lithium carbonate using externally sourced LFP black mass continues to incur losses, with profit margins between -5% and -6%. Except for a few newly operational LFP hydrometallurgical plants this year, most LFP recycling companies have production lines capable of producing lithium carbonate from other raw materials. As a result, even with the recent improvement in lithium carbonate prices, many companies have chosen to halt procurement and production in response to ongoing losses.

The situation is similar in the ternary hydrometallurgical sector, where profits generally hover around 1–3%. In the LCO hydrometallurgical sector, profits have recently declined to around 1–3% due to rising cobalt prices driving up cobalt coefficients across the upstream and downstream recycling enterprises.

On the supply side, following the price increases for nickel, cobalt, and lithium, upstream recyclers have quickly adjusted prices for batteries and electrode materials, including LCO and LFP batteries and electrode sheets. Black mass prices have also risen to some extent. However, with ongoing cost-price inversions, most companies are adopting a wait-and-see approach, and many LFP hydrometallurgical plants continue to rely on toll processing for their business clients.