Latest Update in the SMM Electrolyte Market

Cobalt sulphate prices rose slightly this week, while nickel sulphate prices were basically flat, and lithium carbonate prices continued to rise. Recently, lithium carbonate prices have been significantly influenced by market sentiment, although there has been no major change in supply-demand fundamentals. LFP black mass prices per % lithium rose this week in line with the increase in lithium chemical prices. Upstream grinding enterprises, after observing lithium carbonate supply-demand dynamics and policy developments, remain relatively optimistic about future prices. Although prices have adjusted in response to futures movements, the upward momentum remains strong. Taking LFP pole piece black mass as an example, current prices stand at 3,750-3,950 yuan/mtu, up WoW. For ternary black mass, the nickel and cobalt payables for ternary pole piece black mass currently range from 75.5-77.5%, up 0.25% WoW, while lithium payables remain at 73-75%, basically flat WoW. The main reason is the continued rise in cobalt sulphate prices this week: most enterprises have relatively limited cobalt inventory, and after clearing out old stock, they have had to purchase new material from smelters, driving prices upward. The price increases in cobalt sulphate and lithium carbonate have gradually passed through costs to the ternary and LCO sectors, leading to rises in both payables and prices for ternary and LCO black mass.

This week, the cobalt sulphate market cooled slightly, with trading volume decreasing compared to last week. Supply side, smelters continued to hold prices firm: MHP and scrap-derived cobalt sulphate were quoted at 91,000-92,000 yuan/mt, while intermediate products were quoted at 95,000 yuan/mt. Demand side, downstream inquiries decreased, with only essential restocking maintained. The main reasons were twofold: first, after several weeks of continuous stockpiling, many enterprises had completed their stockpiling targets; second, as it was the financial reporting season, enterprises were managing their capital and inventory for financial statement purposes, showing weaker willingness for additional stockpiling beyond essential needs. Overall, the cobalt sulphate market price is expected to maintain a fluctuating trend within December, with prices likely to return to an upward trend after January as downstream enterprises resume their next round of procurement.

The cobalt intermediate products market continued its strong trend this week, maintaining a pattern of "price without market." Supply side, mainstream spot cargo offers remained anchored around $25.0/lb, with some Q2 2026 futures offers around $27/lb. Demand side, smelters continued to restock based on rigid demand amid losses. According to the latest enterprise export progress, pilot enterprises may achieve exports by the end of December or early January, while other enterprises' export processes remained relatively slow, with a relatively small possibility of exports within 2025. Considering the approximately three-month shipping cycle, cobalt intermediate products from the DRC are expected to arrive at ports successively in March and April next year. The logic of structurally tight raw materials remains unchanged, providing continued support for intermediate product prices to rise.

Domestic spot refined cobalt prices fluctuated upward this week. Supply side, supported by raw material costs, smelters continued to hold prices firm; after traders had been selling consistently in recent months, their available inventory was relatively limited. Additionally, as the year-end approached, enterprises had requirements to control capital occupation and positions, weakening their willingness to sell and only maintaining supplies for core customers. Demand side, there was no significant change, with just-in-time procurement pace continuing. Currently, cobalt salt prices are close to 450,000 yuan per mt in metal content. After deducting the cost of reverse smelting, the price spread between cobalt salts and refined cobalt provides a relatively reasonable profit. If there are no additional changes in the supply-demand fundamentals of refined cobalt itself, prices are expected to maintain a fluctuating trend in the short term. Further price increases still need to wait for cobalt salt prices to rise and drive refined cobalt prices upward.

[SMM Lithium Battery Electrolyte Market Weekly Review: Electrolyte Prices Increased This Week (2025.12.15-12.18)] From December 15 to December 18, 2025, electrolyte prices remained stable. Considering pressure from the cost side and dynamic changes in the supply-demand relationship, electrolyte prices were expected to remain stable in the short term.

In December 2025, emergency controls were activated due to air pollution in key phosphorus chemical industry areas of Hubei, such as Yichang and Jingmen, compounded by the Yangtze River Protection Policy. This led to 30% of small and medium-sized enterprises halting production, while leading companies cut production by 20%-30%. The supply of new energy raw materials, including industrial-grade monoammonium phosphate (MAP), which accounts for over 50% of the national total, tightened, providing short-term price support and continuing to increase costs for the new energy industry.