Cobalt prices may drop from highs as inventories rebound, lithium prices to rise further

SHANGHAI, Sep 1 (SMM) — Battery-grade lithium carbonate prices are expected to rise slightly in early September as large-scale producers intend to raise prices as downstream users step up procurement. Battery-grade lithium hydroxide prices are likely to hold stable.

Ternary battery orders from the new energy vehicle (NEV) market continued to rise for September, with proportion of high-nickel ternary batteries falling slightly while demand for the #6 series low-cobalt high-voltage ternary batteries increasing. NEV makers preferred the #6 series batteries for its higher safety and lower costs. Demand for LFP batteries from the NEV market increased further, while that from the energy storage market was stable. Safety and cycle life advantages helped increase market shares of LFP batteries in the electric two-wheeled vehicle market.  

Market talks that a total amount of 3,000 mt of imported refined cobalt flowed into the domestic market, sluggish demand and tight supply of cobalt raw materials kept spot refined cobalt prices stable last week. 

Prices of battery-grade lithium carbonate rose slightly last week as sales at some producers improved as downstream demand recovered, but end users’ intention to reduce costs will cap the increase in prices. SMM battery-grade lithium carbonate prices stood between 39,500-40,500 yuan/mt last week, while industrial-grade lithium carbonate prices came in at 33,000-37,000 yuan/mt.