Latest Update in the SMM Lithium Market

[SMM Analysis] In the first month of 2026, the lithium carbonate market experienced a retreat after a rapid rise. Starting from 120,000 yuan/mt at the beginning of the month, after a rapid surge and a brief pullback in mid-month, the price surged again in late January, breaking through the 180,000 yuan/mt mark. However, by month-end, as lithium carbonate prices retreated after the rapid rise, the monthly average price for battery-grade lithium carbonate in January was approximately 155,000 yuan/mt. Market characteristics this month included strong reluctance to sell among upstream players and increased purchase willingness from downstream buyers at relatively low price points.

SMM January 22 News: This week, nickel sulphate and cobalt sulphate prices were basically flat, while lithium carbonate prices fell before rising again.

Overview of Imports: This statistical analysis is based on HS code 38249999, which includes recycled intermediate products such as 3824999996 (recycled black mass for lithium-ion batteries) and 3824999995 (crude nickel-cobalt hydroxide). Imports in October totaled 804 mt, while November imports reached 814 mt, up 1.24% MoM. Overall, black mass imports showed signs of stabilizing at a low level in November after pulling back in October. Although unfavorable factors such as the risk of returns due to excessive fluorine content (>0.4%) and extended port inspection cycles in October were gradually absorbed, overall customs declaration and purchasing sentiment remained cautious. As a result, the actual effective clearance volume in November did not see a significant rebound, remaining at a low level of around 800 mt.

SMM January 29 News: This week, nickel sulphate prices remained stable, while lithium carbonate prices fluctuated.

SMM January 19 News: On January 16, 2026, the Ministry of Industry and Information Technology, together with the National Development and Reform Commission (NDRC), the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Commerce, and the State Administration for Market Regulation, jointly issued the "Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries of New Energy Vehicles (NEVs)." This new management measure is a joint departmental regulation with mandatory legal binding force, fundamentally changing the previous situation where guidance documents lacked sufficient enforceability.

According to SMM, on December 26, 2025, the Customs Tariff Commission of the State Council issued an announcement on the 2026 tariff adjustment plan. Effective January 1, 2026, import tariff rates and categories for certain goods were adjusted.

Following the wave of energy storage orders going global, the Middle East has become a core hub for the overseas expansion of China's lithium battery industry capacity, leveraging its commitment to energy transition and strategic geographical advantages. Domestic leading enterprises have taken the lead in deploying the entire industry chain, creating deep resonance with the explosive demand in the Middle East's energy storage market.

Recently, ISKY Circular Energy Technology (Guangxi) Co., Ltd. (hereinafter referred to as "ISKY Circular Energy") formally signed a memorandum of cooperation with the leading lithium battery manufacturer, EVE Energy Co., Ltd. (hereinafter referred to as "EVE"), to engage in in-depth collaboration across four core dimensions: sharing and coordinating lithium battery recycling information and markets, jointly building and sharing a nationwide recycling network, ensuring the supply and recycling of regenerated materials, and advancing ESG and low-carbon certification.

From capital markets to industrial demand, signals of recovery in the lithium industry are clear. Driven by the dual engines of EVs and ESS, the lithium market is gradually emerging from a prolonged downturn and entering a new growth cycle.