[SMM Weekly Review] Year-End Stockpiling + Rising Raw Material Prices Drive Steady Increase in Second-Life Application B-Grade Prices (2026.01.05-2026.01.08)

SMM January 8 News:

Second-Life Application This Week:

This week, prices for second-life B-grade battery cells rose across the board. The core driving factors can be analyzed comprehensively from the cost, supply, and demand sides. Cost side, recent prices of key raw materials such as nickel, cobalt, and lithium chemicals continued to increase, providing direct cost support. Among them, spot lithium carbonate prices kept climbing due to downstream demand boost; cobalt sulphate prices rose driven by dual factors, namely market demand push and tight supply caused by extended arrival cycles for shipments from the DRC; nickel sulphate prices also began to increase, driven by the rise in refined nickel prices, further pushing up the overall cost base for second-life B-grade cells. Supply side, some battery cell enterprises had completed concentrated sales of second-life battery cells before the New Year's Day holiday, leading to a significant reduction in current market supply, and the supply-demand pattern further tilted towards a tight balance. Demand side, it is currently the critical period for year-end stockpiling. Some enterprises previously maintained only rigid procurement, and existing inventory can no longer support needs beyond the Chinese New Year; therefore, their acceptance of higher-priced sources has improved. However, it should be noted that current prices are approaching the high-price threshold that downstream enterprises can bear, and there remains a clear limit to further upside room for prices.

Short-term outlook, prices for second-life B-grade cells are expected to maintain a stable-to-rising trend. Although it still takes some time for the high prices of nickel, cobalt, and lithium chemicals to be passed through to the end-user, market sentiment for price increases has gradually formed and spread. Therefore, before most enterprises complete their year-end stockpiling, second-life B-grade cell prices still possess some upside room in the short term.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yanlin Lü 021-20707875

Yue Lei 021-20707873