Second-life Application Market Overall Stable, Ternary Category Edges Down [SMM Weekly Review]

SMM, June 25:

Second-life application this week:

China’s second-life application market operated steadily overall this week, but prices for some categories edged down, with limited overall fluctuations. Market transactions were dominated by just-in-time procurement. Cost side, consistent downward pressure emerged: prices of nickel, cobalt, and lithium chemicals all pulled back this week, with lithium carbonate declining the most visibly. Although there is a time lag in the pass-through of raw material costs to second-life battery cells, the simultaneous weakness across all raw material categories still directly suppressed market price expectations. The divergence in category trends became more pronounced: ternary second-life battery cells were already weighed down by persistently mediocre end-use demand in the EV sector, with market expectations of price cuts already in place; compounded by the further loosening of price support from the cost side, both factors jointly pushed ternary second-life battery cell prices to pull back slightly this week; in contrast, LFP second-life battery cells were strongly supported by steady and improving demand from the ESS sector. Even as raw material costs pulled back in tandem, prices remained stable and did not follow the downward trend.

Looking ahead, the pattern of category divergence in the second-life application market is expected to persist. Ternary battery cells are expected to still have some downside room in the short term, affected by both weak demand and declining costs; LFP battery cells, underpinned by just-in-time procurement demand from energy storage, are expected to maintain strong price resilience. Overall, the market lacks drivers for significant changes, and is expected to maintain a generally stable operating tone.

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