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.

With the booming development of the new energy vehicle industry, China's first wave of power batteries has entered a large-scale retirement phase. Recently, lithium battery recycling projects have been intensively launched across multiple regions nationwide, covering every link of the industrial chain — from dismantling and crushing to hydrometallurgy, from cascade utilization to material regeneration.

Recently, the company and the management committee of Huanggang High-tech Industrial Development Zone, Hubei, held a signing ceremony for the LFP battery circular base project. According to public information, the project adopts the combined "physical dismantling + hydrometallurgy" recycling process. Production lines cover waste LIB dismantling, reduction roasting furnace, carbonization, leaching and purification, extraction, and evaporative crystallization equipment. Final products include battery-grade lithium carbonate, battery-grade nickel sulfate, battery-grade cobalt sulfate, and battery-grade manganese sulfate, achieving closed-loop recycling from waste batteries to high-end battery materials.

This week, ternary cathode material prices remained largely flat. On the raw material front, nickel sulfate and manganese sulfate prices held steady, cobalt sulfate transaction prices continued to decline, while lithium carbonate and lithium hydroxide remained in a phase of modest fluctuation. In terms of transaction sentiment, battery cell manufacturers maintained need-based procurement, and market transactions remained relatively subdued. 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, the EV market maintained relatively high demand levels in July, with actual production largely in line with earlier expectations. The impending consumption tax reinstatement has prompted some battery cell manufacturers to build inventories ahead of time, contributing to stable growth in August orders. In the consumer market, demand showed no signs of recovery and remained relatively subdued. With the traditional peak season of September and October approaching, overall ternary market demand is expected to see further room for growth.

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.