[SMM Weekly Review] Supply-Demand and Cost-Driven Increase in Second-Life Application B-Grade Battery Prices, 2025.11.03-2025.10.06

SMM November 6 News:

Second-Life Battery Market This Week:

This week, based on market dynamics, LFP B-grade prices showed a slight upward trend, while ternary B-grade high C-rate low ampere-hour specifications continued to rise. Cost side, cobalt salt prices remained stable, while lithium chemical prices trended downward. Supply side, driven by dual demand—ESS year-end installation rush demand release and sustained increase in overseas orders, coupled with steady growth in EV sector demand—overall battery cell demand rose significantly, leading to a reduction in second-life market supply. Demand side, upstream raw material prices remained high, downstream markets maintained just-in-time procurement, and previous cobalt salt price increases gradually passed through to the end-use market. These factors collectively pushed up LFP B-grade and ternary B-grade prices this week, with the latter more affected.

Considering the current supply-demand pattern and cost pass-through dynamics, despite some supply tightness, second-life market demand is expected to remain relatively stable in the short term, limiting price rise potential and preventing significant fluctuations. Although lithium chemical prices recently fell, the lagged effect of earlier cobalt price increases is gradually passing through to end-use second-life applications, combined with recent supply reduction, leading to further price increases for ternary and LFP B-grade cells. However, constrained by falling lithium chemical prices, the rise in LFP B-grade prices will be more gradual.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lü 021-20707875

Zhicheng Zhou 021-51666711

Yue Lei 021-20707873