According to SMM research, the domestic lithium battery recycling market exhibited clear diverging trends in July 2026. During the month, recycled lithium carbonate output declined by 2% month-over-month. Recycled nickel sulfate and cobalt sulfate continued their year-long downtrend, with the weak performance persisting in July and no price recovery in sight.

During the first half of August, the domestic spent battery cell market exhibited a pattern of price divergence and sluggish trading activity.

his week, the Chicago Summit clarified the industry timeline: oxide electrolytes will be prioritized for deployment within 2–3 years, while all‑solid‑state sulfide batteries will be delayed until 2028–2030. The Baihu Lake Laboratory achieved a breakthrough in boride‑based solid‑state batteries with 400 Wh/kg, wide temperature range, and low‑pressure operation, targeting low‑altitude economy and robotics applications.

This week, ternary cathode material prices recovered slightly. On the raw material front, nickel sulfate and cobalt sulfate prices continued to decline, while lithium carbonate and lithium hydroxide prices rebounded somewhat. However, overall cathode material quotations changed little and remained at cyclical lows. In terms of transaction sentiment, some cathode and battery manufacturers only made small-batch need-based restocking purchases, with limited volumes. The market as a whole still holds expectations of further price declines in the near term. On the payable front, no adjustments have been made recently to payables for nickel, cobalt, or lithium. Given the upcoming reinstatement of the lithium battery consumption tax, battery cell manufacturers may shift some cost pressures upstream, leaving limited room for upward payable adjustments. On the demand side, August orders showed stable growth. Stockpiling for new models ahead of the traditional peak season in September and October drove domestic cathode order demand, while overseas markets—particularly Europe—continued to show strong vehicle sales, further supporting ternary demand. On the consumer market front, supply remained largely stable through long-term contracts, while spot contract transactions remained subdued, with no clear signs of demand recovery yet.

Against the backdrop of the United States accelerating the build-out of its domestic battery supply chain while continuing to depend on foreign sources for critical minerals, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) issued an interim final rule on August 5, 2026, imposing export controls on certain recycled battery materials. The most impactful measure is a temporary export restriction on black mass — an intermediate product of lithium battery recycling.

This week, ternary cathode material prices remained largely flat, continuing their range-bound trend at a cyclical low. On the raw material front, nickel sulfate prices remained relatively soft, while cobalt sulfate prices continued to decline at a notable pace. Lithium carbonate and lithium hydroxide prices maintained their low-level range-bound movement. On the transaction front, some cathode and battery manufacturers only made small-batch need-based restocking purchases, with limited volumes. The market as a whole still holds expectations of further price declines in the near term. On the payable front, no adjustments have been made recently to payables for nickel, cobalt, or lithium. Given the upcoming reinstatement of the lithium battery consumption tax, battery cell manufacturers may shift some cost pressures upstream, leaving limited room for upward payable adjustments. On the demand side, August orders are showing stable growth, with demand in both domestic and overseas EV markets remaining at relatively high levels. However, no signs of recovery have yet emerged in the consumer market.