This week, ternary cathode material prices continued to move lower. On the raw material front, nickel sulfate prices traded at low levels with fluctuations, cobalt sulfate offers continued to decline, manganese sulfate prices held steady, while lithium carbonate and lithium hydroxide saw relatively notable declines due to capital market volatility. In terms of transaction sentiment, some battery cell manufacturers remained bearish amid significant volatility in raw material prices. With sufficient inventory levels, downstream battery cell manufacturers largely adopted a cautious wait-and-see approach and slowed their pace of offtake, leading to subdued trading activity this week. On the payable front, battery cell manufacturers showed limited acceptance of upward payable adjustments amid lackluster demand growth. Meanwhile, with the upcoming reinstatement of the lithium battery consumption tax, battery cell manufacturers may shift part of their cost pressures upstream, further complicating any upward payable adjustments. On the demand side, ternary battery cell manufacturers in the EV market generally adopt M-1 month pricing for settlements. Given the notable decline in raw material prices in July, battery cell manufacturers have shown strong wait-and-see sentiment. Actual offtake volumes this month are expected to be lower than previously anticipated, suggesting that domestic ternary cathode shipments in July may decline. In the consumer market, while the expected reinstatement of the consumption tax exists, its pull-forward effect on orders has been relatively limited, with demand also weighed down by falling raw material prices.

In the first half of 2026, the price trends of the three major black mass categories diverged significantly. LFP black mass was highly correlated with the spot and futures prices of lithium carbonate. Ternary battery powder, supported by the multi-metal value of nickel, cobalt, and lithium, exhibited a "high-then-low, wide-range oscillation" pattern.

This week, ternary cathode material prices continued their downward trend. On the raw material front, nickel sulfate and cobalt sulfate edged lower amid subdued trading activity, while manganese sulfate prices rose slightly. Lithium carbonate and lithium hydroxide saw notable declines recently, influenced by capital market volatility. In terms of transaction sentiment, some manufacturers restocked at lower price levels last week when lithium salt prices fell sharply, leading to relatively active trading. However, entering this week, raw material prices continued to decline with no clear signs of stabilization. With sufficient inventories on hand, downstream battery cell manufacturers generally turned cautious and slowed their procurement pace, resulting in subdued transaction sentiment this week. On the payable front, influenced by the continued decline in absolute nickel sulfate prices, some ternary cathode manufacturers saw upward adjustments in nickel sulfate payables during settlements. Payables for other metals remained relatively stable. On the demand side, EV market demand remained at high levels recently, with orders being executed as normal, while consumer market demand continued to stay subdued.

LS-L&F Battery Solution (LLBS) announced that it will officially commence commercial production at its precursor plant in Saemangeum, South Korea, in the fourth quarter of 2026. The joint venture is 55%-owned by LS Corp. and 45%-owned by L&F, and has completed construction of a nickel-cobalt-manganese (NCM) precursor facility with an annual production capacity of 40,000 tonnes. Precursors are key intermediate materials used in cathode production, made from metal raw materials such as nickel, cobalt and manganese. They account for approximately 70% of cathode manufacturing costs and play a crucial role in determining battery performance and production costs. Meanwhile, LS MnM, another subsidiary of LS Corp., also plans to complete construction and commence operations at its battery materials plant in Onsan, South Korea, later this year. The facility will primarily produce metal sulfates, including nickel sulfate, which serves as a key raw material for ternary battery precursors.

Demand in the EV market remains at historically high levels, though no further near-term growth momentum is visible. The consumer market remains in the traditional off-season, with overall performance relatively flat.

Precision Periodic, a U.S. critical minerals refining company, announced plans to build what it says will be the country's first modular, clean-process refinery for battery-grade nickel, cobalt and manganese in Central Florida. The project is designed to process mixed hydroxide precipitate (MHP) into battery-grade nickel sulfate, cobalt sulfate and manganese sulfate, with a target annual processing capacity of 10,000 tonnes of contained nickel at full production. The company said the project aims to address the shortage of domestic refining capacity for battery-grade nickel, cobalt and manganese in the United States, reduce reliance on overseas refining, and strengthen the security of the critical minerals supply chain. Precision Periodic expects the first modular units to begin production within months of securing a site, with the refinery reaching its full design capacity within 12 to 18 months. The company added that both the construction timeline and capital investment are expected to be significantly lower than those required for conventional refineries.