Lithium Ore:
This week, lithium ore prices slightly increased overall. For spodumene, the high transaction prices from last week's Australian ore auction led to higher lithium concentrate quotations both domestically and internationally this week. Small and medium-sized suppliers, constrained by long-distance logistics at this stage, mostly stood firm on quotes without shipping. Some smelters showed strong purchase willingness but faced losses, resulting in a gap between their psychological price levels and those of sellers, leading to sluggish overall transactions. For lepidolite, large suppliers conducted auctions and shipments this week. Most non-integrated lithium chemical plants showed strong purchase willingness, but some failed to secure bids due to auction restrictions and high transaction prices, leaving the overall market's ore shortage unresolved. Small and medium-sized suppliers, with varying supply volumes, stability, and quality, referenced auction prices in their quotations, but overall transactions were relatively average. Lepidolite prices slightly increased WoW.
Lithium Carbonate:
This week, the transaction price center for lithium carbonate spot cargoes remained stable. With the Chinese New Year holiday approaching, some logistics operations have ceased, and only just-in-time procurement for stockpiling occurred, leading to weaker spot transactions compared to last week. Upstream and downstream psychological price levels fluctuated little, with spot prices remaining stable and showing slight fluctuations within a narrow range. After the holiday, demand is expected to gradually recover. Considering the progress of long-term contract signings, the lithium carbonate spot market is expected to remain relatively active, with a slight upward price potential.
Lithium Hydroxide:
This week, lithium hydroxide prices remained stable overall. On the production side, some enterprises continued planned maintenance and upgrades, resulting in low operating rates. In the market, the supply side showed sentiment to stand firm on quotes due to high costs and slow progress in long-term contracts, while the demand side saw diminishing transactions as stockpiling ended and logistics gradually halted. Regarding long-term contract negotiations, upstream and downstream parties continued discussions this week, but due to unclear post-holiday demand, agreements on volumes and discounts were difficult to reach. The lithium hydroxide market was sluggish this week. Additionally, China's lithium hydroxide exports in December reached 7,038 mt, up 21% MoM, with the main increase coming from exports to South Korea. The market remains cautious about future price trends, with short-term prices expected to remain stable.
Refined Cobalt:
This week, refined cobalt prices remained stable. On the supply side, mainstream refined cobalt smelters maintained high operating rates, ensuring sufficient spot supply. On the demand side, downstream just-in-time procurement was mostly completed, and the spot market trading atmosphere was sluggish. Overall, due to the impact of the Chinese New Year holiday, spot market transactions gradually slowed. Refined cobalt prices are expected to remain stable in the short term. Market sentiment towards cobalt prices is pessimistic, with no large-scale stockpiling observed in the spot market, and just-in-time procurement dominating. Under the pressure of oversupply, spot prices are under downward pressure. As logistics and transportation are about to cease before the holiday, spot market activity may further decline, with prices expected to remain stable temporarily.
Intermediate Products:
This week, cobalt intermediate product prices slightly declined. On the supply side, port inventories were sufficient, with no impact on spot supply, ensuring ample market availability. On the demand side, with the Chinese New Year holiday approaching, spot market purchase willingness was limited, and actual transactions were scarce. Year-end stockpiling was mostly completed, and market inquiries were sluggish, with limited transactions for cobalt products and reduced actual procurement demand. Overall, the supply-demand pattern remained unchanged, but with the holiday approaching and logistics gradually halting, spot prices showed little fluctuation. Market activity is expected to further decline before the holiday, with spot prices likely to remain stable.
Cobalt Salts (Cobalt Sulphate and Cobalt Chloride):
This week, cobalt salt prices remained stable. On the supply side, some smelters reduced production due to the Chinese New Year holiday and weakened market demand, leading to decreased supply. On the demand side, early restocking was mostly completed, with market inquiries and transactions remaining sluggish. Due to the lack of active trading, prices remained temporarily stable. Looking ahead, despite the weak supply and demand situation, market activity may further decline with the holiday approaching, and spot prices are expected to remain stable.
Cobalt Salts (Co3O4):
This week, Co3O4 prices remained stable. On the supply side, smelters maintained high operating rates due to order deliveries. On the demand side, downstream producers had mostly completed restocking earlier, leading to weaker purchase willingness and reduced demand this week. Overall, market activity was low, and prices remained stable. Next week, with the Chinese New Year approaching, market fluctuations are expected to be minimal, and prices are likely to remain stable.
Nickel Sulphate:
As of Thursday, the SMM battery-grade nickel sulphate index price was 26,576 yuan/mt, with a quotation range of 26,380-27,040 yuan/mt, and the average price increased WoW. On the demand side, some precursor plants began inquiring in the market before the holiday, but actual procurement volumes were limited. Losses among ternary cathode precursor plants made them cautious in purchasing. On the supply side, spot orders in the nickel salt market remained tight. With the recent rise in LME nickel prices, cost pressure continued to increase, and nickel sulphate producers faced growing losses, leading to stronger sentiment to stand firm on quotes.
Ternary Cathode Precursors:
This week, prices for 5-series consumer-grade, 6-series consumer-grade, and 8-series power-grade ternary cathode precursors all increased to varying degrees. In terms of raw material costs, nickel sulphate prices rose, cobalt sulphate prices remained unchanged, and manganese sulphate prices declined, resulting in significant price increases for high-nickel products. On the supply side, with the Chinese New Year approaching and this week being a non-traditional procurement period, the spot market was relatively quiet. On the demand side, ternary cathode material enterprises showed higher acceptance of precursor prices. Long-term contracts with precursor enterprises have not progressed further. Looking ahead, precursor prices are expected to remain stable next week, mainly due to the holiday, which will halt logistics operations.
Ternary Cathode Materials:
This week, ternary cathode material prices continued to rise, with 6-series and 8-series materials showing more significant increases. This was mainly due to strong nickel sulphate and lithium chemical prices in the last week before the Chinese New Year, as well as notable restocking demand from some top-tier enterprises, which strengthened cost support for ternary cathode materials. In terms of production and supply for January-February, ternary cathode material production declined overall due to the off-season at the beginning of the year. Top-tier ternary cathode material enterprises maintained normal operations during the holiday. Although demand-side orders declined, the reduction was relatively small. Overall, domestic ternary cathode material production in January is expected to decrease by about 5% MoM, with a limited decline compared to previous years. In contrast, overseas ternary cathode material plants continued to operate at low rates. On the demand side, domestic top-tier battery enterprises' ternary power battery cell production schedules for January-February also declined, but the reduction was similarly small. January ternary battery cell production is expected to decrease by about 7% MoM.
LFP:
This week, LFP market prices remained relatively stable, with slight increases. Mid-end power prices saw slight increases, while other categories showed minimal changes. This was partly due to stable lithium carbonate prices this week, which rose by about 50 yuan/mt. Additionally, processing fees for iron phosphate, which have been fluctuating at highs recently, saw slight increases for mid-end power (2.50 g/cc pressed powder), while high-end power (second-sintered) and ESS processing fees remained stable. On the supply side, LFP material plants maintained stable operations this week, with first- and second-tier material plants continuing production during the holiday, while some small and medium-sized plants slightly reduced production. Furthermore, logistics disruptions and increased logistics costs around the holiday may impact delivery schedules. On the demand side, downstream LFP battery cell production schedules for January-February remained strong, with significant growth compared to the same period last year.
Iron Phosphate:
This week, as the Chinese New Year approached, the iron phosphate market remained stable. Under the festive atmosphere, the logistics industry is about to halt operations. To ensure uninterrupted supply during the holiday, many enterprises actively restocked and shipped products in advance to stabilize market supply. Most iron phosphate enterprises will maintain normal production during the holiday, while others plan maintenance shutdowns. Prices for raw materials such as phosphoric acid, industrial-grade MAP, and ferrous sulphate remained stable recently, with little change in production costs for iron phosphate.
LCO:
This week, LCO prices remained stable, with the latest prices for 4.2V, 4.4V, and 4.5V LCO at 134,000 yuan/mt, 138,000 yuan/mt, and 150,000 yuan/mt, respectively. On the raw material side, battery-grade lithium carbonate and Co3O4 prices showed no significant changes, keeping LCO costs stable. On the supply side, LCO production in January declined due to the Chinese New Year holiday, with material plants reducing production schedules. On the demand side, subsidies for digital products are expected to boost end-use market sales after the holiday, driving LCO demand recovery and increased procurement volumes. Overall, the market is expected to gradually recover after the holiday, with LCO prices likely to remain stable in the short term and show slight upward potential.
Anode:
This week, anode prices remained stable. On the cost side, anode material producers continued stockpiling, and low-sulphur petroleum coke prices rose due to low inventories. In contrast, demand for oil-based needle coke from anode producers remained low, with needle coke plants operating at low rates. Under this weak supply-demand situation, needle coke prices remained stable this week. Graphitisation electricity costs remained high, and with integrated development, outsourced graphitisation demand was sluggish. The overall market remained oversupplied, with graphitisation prices stable this week. On the demand side, downstream demand slightly recovered as the Chinese New Year approached. With market demand declining and production costs remaining high, anode producers showed strong sentiment to stand firm on quotes. Anode material prices are expected to remain stable in the near term.
Separator:
This week, lithium battery separator prices remained stable. On the price side, due to prolonged price wars and price suppression by battery cell manufacturers, separator prices had already been pushed to low levels. With the Chinese New Year approaching, downstream battery cell demand declined, and enterprise operating rates also fell. Under this weak supply-demand situation, downstream battery cell manufacturers paused price suppression to ensure procurement, keeping separator prices stable this week. Looking ahead, as separator enterprises continue to release new capacity, the market may still face oversupply. Separator enterprises may slightly lower quotations to compete for market share.
Electrolyte:
This week, electrolyte prices remained stable. On the supply side, with year-end demand declining, LiPF6 production was based on demand, and electrolyte producers shipped according to orders, resulting in limited transactions and stable prices.Demand side, battery cell manufacturers' demand for electrolyte gradually pulled back, with goods picked up on a per-order basis. Cost side, LiPF6 and additive prices remained temporarily stable, while solvent prices rose slightly. Currently, overall electrolyte prices are mainly influenced by LiPF6 prices. However, due to price suppression by battery cells on electrolyte prices, electrolyte prices remained stable. The price of ternary power battery electrolyte ranged from 21,100-29,550 yuan/mt, while LFP battery electrolyte prices ranged from 16,800-25,550 yuan/mt. In the short term, cost-side fluctuations are expected to cause electrolyte prices to oscillate within a certain range. Sodium-ion Battery: This week, the sodium-ion battery market continued its sluggish trend, affected by the off-season for projects in January. Most sodium-ion battery materials and battery cell production activities were primarily focused on fulfilling existing project orders. At this stage, sodium-ion battery companies generally adopted a stockpiling production approach to ensure smooth order deliveries after the Chinese New Year. A new delivery peak is expected in the post-holiday market. Recycling: This week, the recycled scrap market saw price fluctuations. Supply side: This week, lithium carbonate prices fluctuated upward, cobalt sulphate prices remained stable, and nickel sulphate prices rose slightly due to tight supply and continued destocking, though the upward space was relatively limited. Most small and medium-sized hydrometallurgical plants, affected by continued losses in scrap and minimal price fluctuations in scrap before year-end, showed limited market activity and planned to take early holidays before the Chinese New Year. Leading manufacturers maintained normal production but generally refrained from significant stockpiling. Demand side: Most hydrometallurgical enterprises had completed pre-holiday stockpiling by late December. Approaching year-end, most companies preferred to operate at low flow rates and showed weak acceptance of high-priced black mass. This week, buyers and sellers remained in a price stalemate, with sluggish transaction activity. As the Chinese New Year approaches, most companies showed low willingness to ship or purchase. In the short term, black mass prices are expected to fluctuate along with nickel, cobalt, and lithium salt prices, while black mass coefficients are likely to remain stable due to weak supply and demand. Downstream and End-User: Recently, during Abu Dhabi Sustainability Week and the World Future Energy Summit, Masdar announced the EPC and battery suppliers for the RTC project. The UAE RTC project, with a total investment exceeding $6 billion, is an integrated energy project combining PV and ESS. The project plan includes a total capacity of 19 GWh for battery energy storage systems and 5.2 GW for PV power generation facilities, making it the largest of its kind globally. CATL stood out as the supplier of battery energy storage systems, expected to deliver over 6 MWh of ESS products. Meanwhile, PowerChina also secured a bid letter from Masdar for the UAE RTC 2.6 GW PV + 10 GW ESS project. The RTC project set a global record for the largest PV ESS project. Once completed, it will provide uninterrupted and stable power supply to ADQ's data center, overcoming the intermittency challenges of renewable energy and marking a milestone in the UAE's energy transition. 》Subscribe to view SMM's historical spot prices for new energy products 》Click to view SMM's new energy industry chain database News: 【Tianqi Lithium: Termination of Investment in "Phase II Annual Production of 24,000 mt of Battery-Grade Monohydrate Lithium Hydroxide Project"】Tianqi Lithium announced that its board of directors approved the proposal to terminate the investment in the "Phase II Annual Production of 24,000 mt of Battery-Grade Monohydrate Lithium Hydroxide Project." Based on the market environment and the latest economic feasibility analysis of the project, the company decided to terminate the Phase II lithium hydroxide project investment. The company believes that continuing the project would lack economic viability. To avoid resource waste and reduce potential economic losses, the project was terminated. The termination is expected to reduce the company's net profit attributable to shareholders by approximately 501 million yuan in 2024. 【China Electric Vehicle Charging Alliance: 2025 to Add 1.038 Million Public Charging Piles】The China Electric Vehicle Charging Alliance released the 2024 national EV charging and battery swapping infrastructure operation report. From January to December 2024, the increase in charging infrastructure reached 4.222 million units, with domestic NEV sales at 11.582 million units, resulting in a pile-to-car ratio of 1:2.7. According to the alliance, 2025 is expected to see an additional 3.619 million charging piles built with vehicles, bringing the total ownership to 12.858 million units. Meanwhile, 1.038 million public charging piles are expected to be added in 2025. 【CAAM: By the End of December 2024, China's EV Charging Facilities Increased by 49.1% YoY】According to CAAM's Charging and Battery Swapping Branch, by the end of December 2024, the total number of EV charging facilities in China reached 12.818 million units, up 49.1% YoY. Among them, public charging facilities accounted for 3.579 million units, while private charging facilities accounted for 9.239 million units. From January to December 2024, the increase in EV charging facilities in China was 4.222 million units, with an average monthly growth of 352,000 units. SMM New Energy Research Team Cong Wang 021-51666838 Rui Ma 021-51595780 Ziya Lin 86-2151666902 Ye Yuan 021-51595792 Disheng Feng 021-51666714 Ying Xu 021-51666707 Yanlin Lü 021-20707875 Yujun Liu 021-20707895 Zhicheng Zhou 021-51666711
