【SMM Analysis】Weekly Battery Raw Materials Market Update: Cobalt and Lithium Price Rises Drive Shifts in Black Mass Coefficients

This week, prices for salt products including cobalt sulfate and nickel sulfate continued to rise, while lithium carbonate prices also increased due to solid demand and other fundamental factors. The upward movement in cobalt salts led to slight increases in the black mass coefficients for both ternary and lithium cobalt oxide (LCO) materials. However, as the pace of cobalt price increases moderated, the rate of growth for discount coefficients of cobalt and lithium also slowed.

The lithium point price for LFP black mass rose this week, tracking the increase in lithium salt prices. Using LFP electrode black mass as an example, the current price range is 2,700–2,900 CNY per lithium point, reflecting an increase of 75 CNY per lithium point compared to the previous period.

For ternary black mass, the nickel-cobalt coefficient currently stands at 74–76%, unchanged from last week, while the lithium coefficient has risen to a range of 70–73%.

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%. With the exception of a few newly commissioned LFP hydrometallurgical plants this year, most LFP recycling enterprises maintain production lines capable of processing alternative raw materials for lithium carbonate production. Consequently, even amid improving lithium carbonate prices, many operators have chosen to suspend procurement and production in response to persistent losses.

The situation is similar in the ternary hydrometallurgical sector, where profits generally remain in the 1–3% range. For LCO hydrometallurgical processors, continued cobalt price increases have driven up cobalt coefficients throughout the recycling chain, compressing current profits to approximately 1–3%.

On the supply side, following 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 accordingly.