[SMM Weekly Review] Lithium Prices Fell but Failed to Halt the Uptrend; Second-Life Application B Battery for Well-Known Mobile Phone Battery Cell Prices Rose This Week, 2026.03.02-2026.03.05

Published: Mar 5, 2026 16:46

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This week, prices in the second-life Grade B battery cell market showed an upward trend. Cost side, spot lithium carbonate prices fluctuated more sharply this week and, overall, showed a clear downward trend, creating some expected pressure on the cost side going forward; nickel sulphate and cobalt sulphate prices fluctuated within a range, with nickel sulphate prices rebounding, while remaining relatively stable overall and causing no significant disruption to current costs. Overall, the industry chain’s cost side remained within the previous range of fluctuating at highs. Supply side, the second-life battery market gradually returned to its normal supply pace seen before the Chinese New Year; enterprise operating rates rebounded steadily. However, affected by current fluctuations in lithium chemicals prices, some inventory-holding enterprises adopted a wait-and-see stance on sales willingness, and the pace of releasing effective market circulation volumes slowed somewhat. Overall, the supply side showed a pattern of “recovery, but not rushing shipments.” Demand side, demand recovered significantly compared with the Chinese New Year holiday period. Downstream enterprises generally maintained destocking operations, and purchase willingness increased markedly. Among them, demand growth in the ESS sector was particularly notable, with new project starts and supporting demand continuing to be released, becoming the core driver boosting overall demand growth.

SMM News, March 5:

This week’s second-life application update:

This week, market prices for second-life Grade B battery for well-known mobile phone battery cells showed an upward trend. Cost side, spot lithium carbonate prices saw volatility intensifies this week and, overall, a clear downward trend, creating some expected pressure on subsequent costs; nickel sulphate and cobalt sulphate prices fluctuated within a range, with nickel sulphate prices rebounding, remaining relatively stable overall and causing no significant disruption to current costs. Overall, industry chain costs remained within the previous high range. Supply side, the second-life battery market gradually returned to a normal supply pace seen before the Chinese New Year, and the operating rate of enterprises rebounded steadily. However, affected by fluctuations in lithium chemicals prices, some inventory-holding enterprises were inclined to wait and see regarding sales, and the pace of effective market circulation release slowed somewhat. Overall, the supply side showed a pattern of “recovery, but not rushing shipments.” Demand side, demand rebounded significantly compared with the Chinese New Year holiday period. Downstream enterprises generally maintained destocking operations, and purchase willingness increased markedly. Among them, demand growth in the ESS sector was particularly notable, with the start of new projects and supporting demand continuing to be released, becoming the core driver boosting overall demand growth.

Overall, although lithium chemicals prices declined this week, there was a clear lag in price transmission along the industry chain, and earlier high-cost inventory continued to support the market. Coupled with the traditional post-holiday demand recovery cycle in the industry and rapid capacity expansion in the ESS sector, multiple factors jointly pushed up second-life Grade B battery for well-known mobile phone battery cell prices this week.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875

Lei Yue 021-20707873

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