China Lithium Battery Scrap Recycling Volume Soared to Over 29,000 mt in June

SHANGHAI, Jul 18 (SMM) – According to SMM survey, a total of 29,031 mt of lithium battery scrap (including batteries, pole pieces and black mass) was recycled in China in June, an increase of 62% from May. The decline in nickel and cobalt metal prices alleviated the cost pressure of recycling companies, encouraging them to stock up in large quantities. Lithium battery scrap remained in short supply.

The recycling volume of NMC battery scrap, LFP battery scrap and LCO battery scrap stood at 17,032 mt, 8,316 mt and 3,684 mt respectively. In order to ensure the output of nickel sulphate, cobalt sulphate, and lithium carbonate, recycling enterprises stepped up lithium battery scrap purchases. The recycling volume of NMC battery scrap surged 83.2% MoM as falling nickel and cobalt metal prices, together with depleted raw material inventories, incentivised recycling companies to stock up, even as the price coefficient of NMC battery scrap was raised. The recycling volume of LFP battery scrap jumped 17.92% MoM, driven by high lithium carbonate prices and growing demand from LFP.  The recycling volume of LCO battery scrap skyrocketed 128.8% MoM as some recycling companies bought scrap with higher cobalt content.

A total of 3,001 mt of nickel, 4,093 mt of cobalt and 1,077 mt of lithium were recycled in metal content, up 86%, 108% and 39.9% respectively on a month-on-month basis. The recycled lithium battery scrap was processed into 2,800 mt of industrial-grade lithium carbonate, 1,997 mt of battery-grade lithium carbonate, and 1,185 mt of crude lithium carbonate.

Given the robust recovery of LFP battery demand, high lithium carbonate prices, as well as healthy profits, recycling companies are still optimistic about lithium battery scrap recycling.

However, the recycling volume of lithium battery scrap may drop 12% MoM to 25,646 mt in July due to aggressive stocking up in the previous month and a surge in the price coefficient of battery scrap this month. Recycling companies will focus on digesting their inventories on hand this month.