SMM Analysis: Sellers And Buyers In Lithium Battery Recycling Market Remain In A Stalemate

SHANGHAI, May 31 (SMM) – After lithium carbonate prices have stabilised recently, the back-and-forth price negotiations between upstream and downstream enterprises in the lithium battery recycling market intensified. Traders were in no hurry to sell. Ternary battery pole piece scrap was mostly quoted at a coefficient of 76-79% on a tax-included basis. Considering cost and gross profit, hydrometallurgy smelters insisted on 70-73%. Some buyers settled for 75% due to rigid demand.

LFP battery pole piece scrap was offered at 12,500 yuan/mt for 1% of lithium content, while the counter offers of hydrometallurgy smelters were 11,000 yuan/mt, and the actual transaction price was 12,000 yuan/mt after both sides made compromises.

Traders preferred to sell battery scrap to other traders rather than smelters. Some small battery scrap crushing plants sold pole piece scrap on hand out of fears that black mass prices would drop in the future.

Due to the low operating rates of battery cell makers in the first quarter, battery scrap available in the recycling market is estimated to be merely 3,000-5,000 mt, which is far from enough to meet the demand of hydrometallurgy smelters. Thus, traders held offers firm.