【SMM Analysis】What Is the SMM Lithium Battery Recycling Black Mass Index and How to Use It? Master It in One Article!

With the rapid development of the new energy industry, to help enterprises better control price fluctuations in the black mass market and more sensitively reflect market price changes, while further reducing transaction costs for upstream and downstream segments of the lithium battery recycling industry chain when using black mass prices, SMM has launched the lithium battery black mass index price. The SMM lithium battery black mass index price is based on the actual transactions and indicative quotes for the black mass payables and prices per % lithium on the day from enterprises in the lithium battery recycling industry chain (upstream crushing enterprises, downstream hydrometallurgical enterprises, integrated enterprises, and traders). It is calculated through a model that assigns different weights to each price submitter, serving as an indicative price reference for lithium battery recycling black mass settlements. It reflects the most representative lithium battery recycling payables and prices per % lithium on the day the index is published.

What are the product specifications benchmarked by the SMM black mass index?

SMM Electrode Black Mass, NCM, Indicator index, nickel, Delivered to Consumer Works, China, % payable SMM's Battery-Grade Nickel Sulphate, SMM's Industrial-grade lithium carbonate, SMM's Battery-Grade Cobalt Sulphate, specifications: 18% < Ni < 40%, 5% < Co < 18%, 5.5% < Li < 6.5%

SMM Electrode Black Mass, NCM, Indicator index, nickel, Delivered to Consumer Works, China, % payable SMM's Battery-Grade Nickel Sulphate, SMM's Industrial-grade lithium carbonate, SMM's Battery-Grade Cobalt Sulphate, specifications: 9% < Ni < 20%, 5% < Co < 10%, 3% < Li < 3.5%

SMM Electrode Black Mass, LCO, Indicator index, cobalt, Delivered to Consumer Works, China, % payable SMM's Battery-Grade Cobalt Sulphate, SMM's Industrial-grade lithium carbonate, specifications: 50% < Co < 55%, 5.5% < Li < 6.5%

SMM Battery Black Mass, LCO, Indicator index, cobalt, Delivered to Consumer Works, China, % payable SMM's Battery-Grade Cobalt Sulphate, SMM's Industrial-grade lithium carbonate, specifications: 25% < Co < 30%, 3% < Li < 3.5%

SMM Electrode Black Mass, LFP, Indicator index, lithium, Delivered to Consumer Works, China, % payable SMM's Industrial-grade lithium carbonate, specifications: 3.2% < Li < 4.2%

SMM Battery Black Mass, LFP, Indicator index, lithium, Delivered to Consumer Works, China, % payable SMM's Industrial-grade lithium carbonate, specifications: 2.0% < Li < 2.8%

The above prices are all tax-inclusive, delivery-to-factory prices, with prepayment as the payment method. (Other price data that do not meet this standard will be standardized to these specifications before being included in the calculation.)

When is the SMM lithium battery black mass index released?
At 12:00 PM on each trading day.

What is the calculation method for the SMM lithium battery black mass index?
1. Initial weight assignment:
- Buyers and sellers weighting: upstream crushing enterprises 25%, downstream crushing enterprises 25%, integrated enterprises (with both crushing and hydrometallurgical production lines) 40%, traders 10%, totaling 100% (with over 100 price submitters in total).
- Individual enterprise weighting: based on each enterprise's procurement volume/influence in different segments, weights are assigned accordingly. The weights across segments are summed to obtain the initial weight for that enterprise. The weights for other price submitters are calculated similarly.

2. Daily index price calculation: the quotes from each enterprise are multiplied by their corresponding weights, and the weighted average yields the daily SMM lithium battery black mass index price.

3. Weight adjustment:
- Daily adjustment: SMM analysts perform regression analysis on the daily collected price data, conduct secondary verification of extreme outliers, and request valid evidence from the price-providing enterprises. If valid evidence cannot be provided consistently, the enterprise's weight will be punitively reduced by the model based on the degree of deviation.
- Periodic adjustment: given the rapid expansion of the industry, SMM will periodically reassess and adjust enterprise weights based on industry conditions. However, enterprises that have been punitively reduced in weight cannot regain weight through expansion. How to Use the SMM Lithium Battery Black Mass Index?
The SMM Lithium Battery Black Mass Index reflects real-time conditions in the spot market for lithium battery black mass. It more sensitively captures changes in the black mass payables market transactions and the tug-of-war between sellers and buyers compared to range prices, making it the most representative black mass payables price for the day. Enterprises can directly use the SMM Lithium Battery Black Mass Payables Index as a reference for order signing and settlement, thereby reducing transaction costs.