[SMM Analysis] December Lithium Battery Scrap Recycling Volume Remained Stable with a Slight Increase, Mainly Driven by Pre-Holiday Stocking Demand

SMM January 3 News: In December, China's lithium battery production waste recycling volume slightly increased. Downstream demand was mediocre, but early stockpiling by some wet-process plants boosted overall industry production. The total recycling volume for the month (in black mass terms) reached 25,874 mt, continuing to grow after November, with both MoM and YoY increases. Among them, the recycling volumes of ternary and LFP production waste were 10,981 mt and 14,530 mt, respectively.

In December, supply side: Nickel sulphate and cobalt sulphate prices remained stable this month, while lithium carbonate prices continued to decline slightly. With salt prices largely stable, some traders, considering year-end cash flow, still aimed to sell at high prices, maintaining a firm stance on quotes. Demand side: Most wet-process enterprises had gradually completed their pre-year-end stockpiling by late December. Approaching year-end, most companies preferred to operate at low flow rates and showed weak acceptance of high-priced black mass. This week, buyers and sellers remained at a price stalemate, and transaction activity was sluggish. As the Chinese New Year approaches, most companies showed low willingness to sell or purchase. In the short term, black mass prices are expected to continue fluctuating with nickel, cobalt, and lithium salt prices, while the black mass coefficient is likely to remain stable due to weak supply and demand.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Ying Xu 021-51666707

Yanlin Lü 021-20707875

Yujun Liu 021-20707895

Xiaodan Yu 021-20707870

Xianjue Sun 021-51666757

Zhicheng Zhou 021-51666711

He Zhang 021-20707850