[SMM Weekly Review] Lithium and Cobalt Prices Hold Steady at High Levels, Second-Life Application Market Continues Structural Divergence Pattern, 2025.12.22-2025.12.25

SMM December 25:

Second-life application this week:

This week, second-life battery market prices showed structural fluctuations, with the core driver being the release of year-end stockpiling demand from second-life enterprises. Cost side, cobalt salt prices continued to stabilize at highs, while lithium chemicals prices rose further this week; as core raw materials for ternary battery cells, the price increase directly elevated raw material costs for cell production, providing strong support for ternary battery cell prices. Supply side, nearing year-end, some battery cell manufacturers increased shipment efforts based on operational considerations. Demand side showed a divergent trend: the ESS sector continued to face tight battery cell supply, while demand in the EV sector remained stable. In terms of product flow, due to safety concerns, second-life LFP battery cells became the preferred category in the market, with LFP B-grade prices also rising. In contrast, ternary battery cells flowed more to the battery swapping market, where demand is relatively constant; this pattern directly constrained the upside room for ternary B-grade prices.

The second-life battery market will continue its structural divergence trend. In the short term, high lithium and cobalt prices provide solid cost support, coupled with robust ESS demand and the market's favour for second-life LFP battery cells due to their safety advantages; their prices are expected to be stable with a potential increase. Conversely, for ternary battery cells, constrained by slow demand growth in the battery swapping market and increased shipments from producers, the upside room for ternary B-grade prices will remain limited.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lyu Yanlin 021-20707875

Lei Yue 021-20707873