U.S. startup Bridge Green Upcycle has recently opened a lithium-ion battery critical mineral recovery plant in Chennai with an annual processing capacity of 7,200 tonnes. Located in Gummidipoondi, the facility can process end-of-life batteries and manufacturing scrap, recovering key materials including lithium, cobalt, nickel, manganese, copper, and graphite. The company plans to invest between INR 5 billion and INR 10 billion over the next five years, with the current plant expected to reach full capacity by the end of this year. In the next phase, Bridge Green will expand into the production of battery-grade salts—such as lithium carbonate, nickel sulfate, and cobalt sulfate—with commissioning targeted by 2028. The expansion will also include a second-life battery facility.

On the demand side, the EV market saw strong overall orders and fast production pace in May, with some leading manufacturers achieving significant output growth.

This week, ternary cathode material prices declined. On the raw material front, nickel sulfate and cobalt sulfate showed slight downward movements, manganese sulfate edged up, while lithium carbonate and lithium hydroxide saw significant pullbacks. In terms of transaction sentiment, after a month of sustained increases, the price correction for ternary cathode materials created pricing opportunities for manufacturers, and some battery cell manufacturers carried out restocking . On payables, the overall EV market continued to maintain existing payable levels , and June payables are expected to remain stable. On the consumer market front, due to relatively high spot contract transaction volumes and significant price volatility, some manufacturers expect upward adjustments to nickel sulfate payables in cathode materials next month . This is mainly driven by persistently high nickel sulfate production costs, upstream producers pushing prices higher due to cost pressures, with prices gradually transmitting downstream . On the demand side, the domestic EV market is currently in a phase of concentrated stockpiling for new models, with orders rebounding notably. The overseas market is also strong, driven by robust European vehicle sales and stockpiling for new product launches by some brands, collectively boosting orders for domestic cathode manufacturers. Overall demand in the consumer market remains relatively subdued, more reflected as need-based restocking by manufacturers. Overall, the ternary market is expected to maintain relatively high demand levels in June .

The domestic EV market is currently in a phase of concentrated stockpiling for new models, with orders rebounding notably.

This week, ternary cathode material prices edged higher. On the raw material front, nickel sulfate rose slightly, cobalt sulfate edged down, manganese sulfate held steady, while lithium carbonate and lithium hydroxide showed an upward trend amidst volatility. In terms of transactions, with raw material prices remaining at high levels and fluctuating, battery cell manufacturers currently have sufficient inventory levels and no urgent need for pick-ups . They are largely continuing to execute orders signed when raw material prices were lower, waiting for opportunities when prices may correct. Payable levels remained stable, with no significant changes in the past two weeks. On the demand side, the domestic EV market showed modest signs of recovery. Upcoming new model launches at this week's auto show are expected to provide some impetus to future demand . The consumer market, however, remained relatively subdued. Overseas orders have declined compared to March following the conclusion of the export rebate policy. With the May Day holiday approaching, some cathode manufacturers have restocking needs for raw materials, which is expected to provide support to raw material prices at the end of the month . However, downstream battery cell manufacturers still have limited acceptance of price increases . The specific price trend will still need to focus on manufacturers' restocking situations at the end of the month.

The domestic EV market showed modest signs of recovery. Upcoming auto shows next week may feature new model launches, which could provide some momentum for future demand.