South Korean company Cosmo Chemical announced on the 23rd that it has signed a memorandum of understanding (MOU) with a producer located in Indonesia—affiliated with a Chinese group that holds the world’s largest market share in ternary precursor materials—to establish a long-term supply partnership for battery-grade nickel sulfate and cobalt sulfate. Under the agreement, from this year through 2030 the two parties will cooperate on the stable procurement and supply of battery-grade nickel and cobalt sulfate, with planned annual deliveries of approximately 2,000 tons. Based on current market prices, the total value could reach up to KRW 200 billion.

Recycling Industry Events This Week (September. 22-27)

【SMM Flash Update】 Shenzhen-listed GEM Co., Ltd. (002340.SH) announced that its board has approved the issuance of H-shares and a main board listing on the Hong Kong Stock Exchange, appointing Grant Thornton Hong Kong as auditor. Founded in 2001, GEM is a leading player in waste recycling and new energy materials, with operations spanning spent battery and e-waste recycling, re-manufacturing of nickel, cobalt, lithium, tungsten and precious metals, as well as production of ternary precursors and cathode materials for EV batteries. Already listed in Shenzhen and Zurich, GEM’s market capitalization stood at about RMB 35.46 billion as of Aug 25, 2025.

SMM News on May 23: This week, cobalt product quotations have collectively declined. The refined cobalt market is still digesting social inventory. As cobalt prices fall, production cuts at smelters may continue. Meanwhile, spot quotations for Co3O4 have also seen a significant drop, with a noticeable decrease in the phenomenon of holding back from selling... SMM has compiled the changes in spot quotations for the cobalt market this week, as detailed below: Refined Cobalt: According to SMM spot quotations, refined cobalt spot quotations have shown a continuous downward trend this week. As of May 23, refined cobalt spot quotations have fallen to 223,700-248,000 yuan/mt, with an average price of 235,850 yuan/mt, a decrease of 6,200 yuan/mt from May 16, representing a 2.56% decline. 》Check SMM Cobalt and Lithium Spot Quotations According to SMM, in the refined cobalt market, from the supply side, the market is still digesting social inventory at its current pace. The economic viability of refined cobalt production continues to decline, and production cuts at smelters are likely to persist. In terms of quotations, traders' quotations continue to fall in line with the futures market. Recently, some traders have exited the market and sold their inventory due to funding costs. From the demand side, amid falling prices, the purchase situation of downstream producers has slightly improved, with inquiries and buying interest picking up. It is expected that next week, refined cobalt spot prices may continue to fluctuate. Cobalt Salts (Cobalt Sulphate and Cobalt Chloride): Cobalt Sulphate: According to SMM spot quotations, cobalt sulphate spot quotations have also shown a downward trend this week. As of May 23, cobalt sulphate spot quotations have temporarily stabilized at 48,000-50,000 yuan/mt, with an average price of 49,000 yuan/mt, a decrease of 200 yuan/mt from May 16, representing a 0.41% decline. 》Check SMM Cobalt and Lithium Spot Quotations According to SMM, from the cobalt sulphate supply side, spot quotations from both smelters and recyclers have declined. Actual transactions are mainly small, sporadic orders, and the transaction price of cobalt sulphate has further dropped. From the demand side, the overall purchase sentiment of downstream producers is poor. With some ternary precursor plants experiencing a slight reduction in orders, the overall stockpiling demand is not strong. Additionally, as Co3O4 producers have built up inventory in the early stage, Co3O4 sales have slowed down slightly in the short term, and producers' purchase willingness has further declined. Currently, market transactions are mainly small, sporadic orders, and no bulk purchases have been observed. It is expected that next week, cobalt sulphate spot prices may continue to fluctuate in the doldrums. Cobalt Chloride: According to SMM spot quotations, cobalt chloride spot quotations have continued to fall this week. As of May 23, cobalt chloride spot quotations have dropped to 59,500-60,900 yuan/mt, with an average price of 60,200 yuan/mt, a decrease of 150 yuan/mt from May 16, representing a 0.25% decline. From the perspective of supply and demand, on the supply side, due to the ongoing shortage of raw materials, some smelters have a strong willingness to support prices and exhibit a certain degree of reluctance to sell. However, there are also smelters that are not optimistic about future price trends and choose to sell at low prices. On the demand side, downstream enterprises have a certain level of inventory and only maintain just-in-time procurement, with few inquiries in the market. It is expected that next week, if demand remains weak, the spot price of cobalt chloride may continue to decline further. Regarding Co3O4: According to SMM spot quotes, the spot quotes for Co3O4 also failed to escape the downward trend this week. After a continuous decline last week, it only temporarily stabilized on the first trading day before continuing to fall. As of May 23, the spot quotes for Co3O4 had dropped to 202,000-210,000 yuan/mt, with an average price of 206,000 yuan/mt, a decrease of 2,250 yuan/mt from May 16, representing a decline of 1.08%. According to SMM, from the supply side, although smelters' quotes are relatively stable, their willingness to sell has increased, and the phenomenon of holding back from selling has significantly decreased. On the demand side, downstream LCO producers have differing opinions on the market outlook, with a strong wait-and-see sentiment, and only make necessary procurements to meet daily production needs. Affected by the decline in LCO prices, it is common for producers to bargain down purchasing prices of raw materials, and there is little willingness to stockpile. Against the backdrop of the overall weak market, there have been individual transactions at low prices. It is expected that the peak procurement period for Co3O4 has not yet arrived next week, and the spot price may continue to fall. On the news front, this week, the import and export data for cobalt-related products were released. According to customs data, China's imports of cobalt hydrometallurgy intermediate products in April 2025 were approximately 18,600 mt (metal content), up 5% MoM. In terms of the average import price, in March 2025, the average import price of cobalt hydrometallurgy intermediate products in China was $15,820/mt (metal content). By country, the DRC remained the main importing country in March, with imports of approximately 18,500 mt (metal content) (calculated based on a 35% grade), an average import price of $15,857/mt (metal content), and an import share of approximately 99%. 》Click to view details For unwrought cobalt, according to customs data, China's imports of unwrought cobalt in April 2025 were approximately 839 mt (metal content), up 60% MoM and 230% YoY. In terms of the average import price, the average import price of unwrought cobalt in China in April 2025 was $26,831/mt (metal content), up 36% MoM. From January to April 2025, cumulative imports reached 2,337 mt (metal content), up 175% YoY. On the export side, China's exports of unwrought cobalt in April 2025 were approximately 4,086 mt (metal content), up 201% MoM and 556% YoY. In terms of average export prices, the average export price of unwrought cobalt from China in March 2025 was $31,119/mt (metal content), up 28% MoM. From January to April 2025, the cumulative exports reached 7,397 mt in metal content, up 185% YoY. 》Click for details It is worth mentioning that recently, Tengyuan Cobalt released a record of investor activities. When asked about the company's capacity, Tengyuan Cobalt stated that as of the end of Q1, the company had a total capacity of 26,500 mt in metal content for cobalt products, 10,000 mt in metal content for nickel products, 10,000 mt in metal content for manganese products, 5,000 mt for lithium carbonate, and 60,000 mt for copper products. In addition, when asked about how long the company's current inventory of cobalt raw materials could sustain production given that the cobalt ban in the DRC had not yet been lifted, Tengyuan Cobalt responded that the company maintained a certain level of safety inventory. At the same time, considering actual market conditions, it obtained production raw materials by timing, quantity, and price through secondary resource recycling and purchases from traders. The company would also closely monitor the progress of the event and make corresponding preparations.

[SMM Weekly Review of Cobalt Sulphate Market: Spot Price of Cobalt Sulphate Declines, Downstream Buying Sentiment Extremely Weak] This week, the spot price of cobalt sulphate declined. Supply side, spot quotes for cobalt sulphate from smelters and recycling plants both fell, with actual transactions mainly consisting of sporadic small orders, and transaction prices further declining. Demand side, the overall purchase sentiment of downstream producers was poor. With some ternary precursor plants experiencing a slight reduction in orders, the overall stockpiling demand was not strong. Additionally, as Co3O4 producers had built up inventories in the early stage, Co3O4 sales slowed down slightly in the short term, and the purchase willingness of producers further declined. Currently, market transactions are mainly sporadic small orders, and no bulk purchasing activities have emerged. It is expected that next week, the spot price of cobalt sulphate may continue to decline amidst fluctuations.

India Proposes Zero Tariffs on Certain Quantities of US Auto Parts and Steel In trade negotiations with the US, India proposed zero tariffs on certain quantities of steel, auto parts, and pharmaceuticals on a reciprocal basis. (Cailian Press) Tariff Policy to Drive Up Prices of New and Used Cars in the US, Repair Costs Also to Increase The New York Times reported on the 3rd that the US's 25% tariff on imported auto parts could significantly raise the prices of new and used cars, as well as repair and insurance costs. The report stated that tariffs on imported auto parts would have a broad impact, as even cars made in the US often have engines, transmissions, batteries, and other components produced in other countries. Trump's tariff policy has already driven up new car prices, as consumers rushed to dealers to buy cars before the tariffs took effect. The tariff policy has also affected the used car market, as more people are seeking affordable alternatives to new cars, increasing demand and prices. Tariffs on auto parts are expected to raise repair costs and insurance premiums, as replacing auto parts will become more expensive. Rising car prices will exacerbate inflation. (Cailian Press) US Tariff Policy Disrupts Domestic Companies, Several US Firms Suspend Profit Forecasts According to CNN on May 4, due to the erratic nature of recent US tariff policies, several major global automakers have delayed or suspended profit forecasts. The report stated that automaker Stellantis Group released a report on April 30, indicating that it has suspended its 2025 profit growth forecast due to the impact of "changing" tariff policies. Previously, General Motors also issued a statement on April 29, withdrawing its 2025 profit growth expectations due to the potential impact of US tariff policies. (Cailian Press) BYD: NEV Sales Reach 1.3809 Million Units in the First Four Months, Up 46.98% YoY BYD announced on May 5 that its NEV sales in April 2025 reached 380,100 units, up 21.33% YoY. From January to April 2025, the company's cumulative NEV sales reached 1.3809 million units, up 46.98% YoY. (Cailian Press) Ford Motor Company Expects Tariffs to Cause $1.5 Billion Loss Ford Motor's adjusted EPS for Q1 was $0.14, while analysts expected a loss of $0.043 per share. Ford Blue's revenue for Q1 was $21 billion, compared to analysts' expectations of $20.08 billion. Ford Blue's EBIT for Q1 was $1.2 billion, compared to analysts' expectations of $1.22 billion. The company expects to suffer a $1.5 billion hit from tariffs this year and has suspended its 2025 performance forecast. (Cailian Press) "Labour Day Holiday" Sees Over 3 Million Applications for Car Trade-In Subsidies Nationwide According to the Ministry of Commerce, the national consumer market was vibrant and active during the 2025 Labour Day holiday. Data from the Ministry of Commerce's business big data monitoring showed that sales at key retail and catering enterprises nationwide increased by 6.3% YoY during the holiday. Trade-in programs were particularly popular. From the beginning of 2025 to 0:00 on May 5, applications for car trade-in subsidies exceeded 3 million. Consumers purchased 55.16 million units of 12 major categories of home appliances through trade-in programs and 41.67 million pieces of digital products such as mobile phones. In the first four days of the holiday, applications for car trade-in subsidies exceeded 60,000, driving new car sales of 8.8 billion yuan. Consumers purchased 3.56 million units of 12 major categories of home appliances, driving sales of 11.9 billion yuan, and 2.42 million pieces of digital products such as mobile phones, driving sales of 6.4 billion yuan. During the holiday, sales of home appliances, cars, and communication equipment at key retail enterprises monitored by the Ministry of Commerce increased by 15.5%, 13.7%, and 10.5% YoY, respectively. Sales of smart home products on key e-commerce platforms monitored by the Ministry of Commerce increased by over 20% YoY. Service consumption continued to heat up, with the catering and cultural tourism markets thriving. According to business big data monitoring, sales at key catering enterprises nationwide increased by 8.7% YoY during the holiday. (Cailian Press) Related Reading: SMM Analysis: Spot Prices of Refined Cobalt Strengthen SMM Analysis: Spot Prices of Cobalt Intermediate Products Rise SMM Analysis: Economic Viability of Refined Cobalt Production Declines, April Production Down MoM SMM Analysis: April Lithium Hydroxide Production Stable but Weak, May Expected to Remain Flat SMM Analysis: April Ternary Precursor Production Up 0.36% MoM SMM Analysis: April Ternary Cathode Material Production Up 7.38% MoM SMM Analysis: Between Advance and Retreat: The Realistic Compromise of US Auto Tariff Compensation Policy and the Challenges of Global Industry Chain Restructuring SMM Analysis: April Iron Phosphate Market Stable, Companies Under Pressure, Prices Difficult to Raise Lithium Drives the Green Revolution: Analyzing the Reshaping of the Energy Future in the Industry Chain [SMM Science] SMM Analysis: Driven by LCO Market Demand, April Co3O4 Production Significantly Increased MoM Q1 Auto Industry Starts with Double-Digit Growth in Production and Sales, What to Expect in Q2 Under Tariff Pressure? [SMM Special] SMM: Global ESS Market Demand May Reach Around 470GWh by 2030, How Will Each Market Perform? March Battery Material Import and Export Data Released: Spodumene and Lithium Carbonate Imports Show Mixed Performance [SMM Special] Spot Quotations for Refined Cobalt Continue to Rise, High Raw Material Costs Lead to Production Cuts at Some Smelters, This Cobalt Salt Price May Remain Firm [Weekly Observation] SMM Analysis: A Review of This Week's Scrap Spot Price Trends (April 21-27, 2025) SMM Manganese Ore Weekly Review: Market Purchasing Sluggish, Spot Prices Under Pressure SMM Analysis: Weekly Review of the Lithium Carbonate Market: Demand Falls Short of Incremental Expectations, Weekly Drop Exceeds 1,000 Yuan! SMM Analysis: Lithium Ore Weekly Market Review, April 21-25 SMM Analysis: Lithium Hydroxide Weekly Market Review, April 21-25 SMM Analysis: Recent Electrolyte Prices (April 21-24, 2025) SMM Analysis: ESS Battery Cell Weekly Price Trends, April 17-24 SMM Analysis: This Week, Co3O4 Spot Prices Slightly Declined SMM Analysis: This Week, Ternary Cathode Material Prices Further Pulled Back SMM Analysis: This Week, Ternary Precursor Prices Rebounded Slightly SMM Analysis: This Week, Refined Cobalt Spot Prices Rose Slightly SMM Analysis: This Week, Cobalt Intermediate Product Spot Prices Remained Stable SMM Analysis: This Week, Cobalt Chloride Prices Slightly Increased SMM Analysis: Cobalt Sulphate Spot Prices Temporarily Stable, Market Sentiment Cautious SMM Analysis: This Week, Power Battery Cell Prices Generally Stable, Ternary System Demand Under Pressure, Lacks Momentum SMM Analysis: This Week, Anode Material Prices Maintained a Stable Trend SMM Analysis: This Week, Anode Raw Material Coke Prices Declined to Varying Degrees SMM Analysis: Supply-Demand Pattern and Costs Show No Significant Fluctuations, Graphitisation Tolling Services Prices Stable This Week April 21-25 Iron Phosphate Market Situation [SMM Analysis] SMM Analysis: China's Unwrought Cobalt Exports and Export Prices Rose Significantly MoM in March 2025 SMM Analysis: March Cobalt Intermediate Product Imports Up Both YoY and MoM SMM Analysis: Fast Charging Technology Showdown: CATL vs. BYD SMM Analysis: Zimbabwe's Step Aside Lithium Mine Project Initiates Asset Liquidation: Focusing on Strategic Adjustments and Market Opportunities 2025 (10th) New Energy Industry Expo Concludes Successfully! See Industry Leaders Discuss Hot Topics! SMM: Global LFP Production Expected to Continue Rising, Subsequent Prices Still Largely Affected by Lithium Carbonate [New Energy Summit] SMM Analysis: March Domestic Spodumene Imports Totaled 534,500 mt SMM Data: March 2025 LiPF6 Import and Export Data March Iron Phosphate Material Import and Export Situation [SMM Analysis] SMM Analysis: March Ternary Cathode Import and Export Data Released, Imports Up 31% MoM, Exports Up 36% MoM SMM Analysis: March Market Recovery, Artificial Graphite Exports Increase SMM Analysis: March Ternary Precursor Export Situation Analysis