[nickel Cobalt Lithium Summit] SMM: lithium recovery will enter the era of TWh. Where is the bottleneck of layout? how to break the ice?

[live] focus: global economy, Nickel, Cobalt, Lithium Price, Battery Technology and Battery Recycling

"[live broadcast] under the background of carbon neutralization, the development prospect of stainless steel and nickel industry 2021 Review and Prospect of the Global Nickel Market

"[live broadcast] Review and Prospect of Cobalt and Lithium Market; Analysis on Recycling of carbon Neutralization Battery current situation and trend of Power Battery Recycling

SMM5 March 21: at the SMM2021 (sixth) China International Nickel, Cobalt and Lithium Summit Forum, Mei Wangqin, senior analyst of SMM New Energy, analyzed the development and future trend of China's lithium recycling market. She said that new energy is unstoppable and lithium recycling will enter the TWh era.

The global market for new energy vehicles continues to heat up, and the growth rate of ~ 25% will continue in the next decade. The demand for new energy metals surged, and the consumption of nickel, cobalt and lithium maintained an average annual growth rate of 20,35%. New energy is about to enter the blue sea of battery recycling, and it will fully explode after 2025, and the amount of waste batteries will reach 1.2TWh.

Digital and power batteries will be scrapped for 3-8 years, while small power batteries will be scrapped for only 3-5 years.

Battery scrap will reach 1.2 TWH in 2030, and metal recycling of nickel and lithium will continue to grow by more than 30%.

Enterprises in the upper and lower reaches of the industrial chain are actively seizing the battery recycling market:

The market is scattered and the leading enterprises are laying out one after another.

Although Guangdong and Henan is a concentrated place of waste, social recycling will spread all over the country in the future.

Guangdong: the concentration of digital battery enterprises, more than 50 large-scale power and digital battery enterprises.

Henan: the gathering place of waste battery traders, more than 1000 traders and waste dismantling enterprises.

East and South China: major provinces of new energy vehicle consumption, Guangdong, Shanghai, Zhejiang, Henan and Jiangsu account for 50-60% of the national sales of new energy vehicles.

Among the scrapped batteries, only 40% of the batteries have been decommissioned by the society, and the market flow is complex, so it is urgent to regulate them.

What is the bottleneck of the market? how do enterprises break the ice?

The recovery of lithium batteries is beset with difficulties, and it is urgent to improve policy guidance and marketization. Macro-policy supervision needs to be strengthened; the "main body of responsibility" is not the "main body of contribution"; standardized valuation is fraught with difficulties; whitelist enterprises make little profit.

Macro policy supervision needs to be strengthened:

The whitelist is a "recommended" cooperative enterprise for power battery recycling and is not a mandatory market entry threshold.

A large number of "family workshops" with "no battery recycling qualification" or even "no business license" recycle waste batteries at high prices and violently disassemble and break them up.

Disrupt the healthy development of the market and cause serious environmental pollution

The "subject of responsibility" is not the "subject of contribution":

The main body of responsibility for power battery recycling is the automobile enterprise. at present, the number of battery recycling outlets announced by car enterprise officials is nearly 10,000, but the utilization rate of the network is very low.

The actual participants in the recycling market are traders, but there is no mature system.

Relying solely on car companies to recycle batteries from retail investors in the market will be uncontrollable and uneconomical in the short term.

Standardized pricing is fraught with difficulties:

It is difficult to unify the pricing standard of waste battery due to the difference of battery model, specification, brand and residual power.

The inaccurate detection of metal content and uneven sampling make it impossible for enterprises to set prices accurately.

Car companies do not disclose the "communication protocols and data" of batteries, further increasing the obstacles to the standardization of battery pricing.

Whitelist companies make very little profit:

At present, most whitelist enterprises make little profit or even lose money because they have to abide by the regulations such as waste battery transport vehicles, storage conditions, automation level and so on.

In the short term, the volume of battery recycling is insufficient, and the whitelist enterprises fail to achieve large-scale benefits and cannot become the core business of the enterprise.

In the short and medium term, recyclers will work with car companies and battery companies to build recycling channels to recover raw materials for self-use and export; in the long run, third-party service providers will build a C2B2B system.

How to empower SMM with homeopathic sailing

SMM will introduce waste battery recycling and black powder prices to help standardize pricing and reduce transaction costs.

SMM and Li Huitong will provide more practical quotation services for users in the industry based on real-time transaction data.

Battery recycling price methodology:

The meaning of price: in the current lithium battery recycling market, due to the opaque market information, various specifications of waste batteries and black powder, and lack of standardization, some enterprises have no laws and regulations to avoid the risks brought by this fluctuation, which indirectly increases the transaction costs. SMM provides objective and fair prices of waste batteries and black powder for the lithium battery recycling market to help the market avoid transaction risks and reduce transaction costs.

Details of SMM- Lithium Huitong Battery Recycling Price:

1. Price range

SMM- Lithium Huitong 523ternary waste battery (power type), lithium cobalt acid waste battery (digital type), ternary battery black powder, lithium cobalt battery black powder, reflects the national daily spot market, waste battery and battery black powder, when the actual transaction occurs, take the SMM recovery price as the benchmark for the most likely spot transaction evaluation range; the price is mainly based on the spot trading price situation throughout the country on the same day.

two。 Announcement time

SMM- Lithium Huitong 523 ternary waste battery (power type), lithium cobalt waste battery (digital type), ternary battery black powder, lithium cobalt battery black powder, will be officially released at the end of June 2021. Prices are announced from 12:00 to 13:00 every working day.

3. Quotation method

Collect the information of automobile, battery and trader, dismantling, black powder, smelting enterprise (covering 50% production capacity of the market) zero order transaction price, quotation / bid, and the spot actual transaction price offered to reach the transaction, etc., by means of adopting the standard, to form a quotation.

4. Pricing method

Including tax factory price increase, payment method is cash, unit ten thousand yuan / ton.

Definition of product