Raw material side, this week lithium carbonate and nickel sulphate prices fluctuated, while cobalt sulphate prices continued to decline.

This week, second-life battery market prices remained flat. Cost side, lithium carbonate prices saw a notable decline, cobalt sulphate extended its weakness with persistent declines, and nickel sulphate prices were basically flat. Meanwhile, new battery cell prices were generally stable; ternary new battery cell prices remained stable, while LFP energy storage new battery cell prices edged up. Correspondingly, downgraded A- and B-grade battery cells, anchored by new cell prices, also stabilized. Dismantled battery cells, supported by previous high procurement costs and rigid dismantling costs, had entered a phase of stability; coupled with limited circulation of qualified low-priced supply, prices had little upside and downside room.

This week, ternary cathode precursor prices weakened somewhat, nickel sulphate and cobalt sulphate prices edged lower, while manganese sulphate prices remained stable.

Refined Cobalt: Refined cobalt spot prices fell sharply this week. On the supply side, mainstream smelters lowered their ex-works quotations to 402,000 yuan/mt. After the rapid decline, most traders suspended their offers. The persistently weakening demand-side market suppressed the downstream procurement pace. Alloy and magnetic material producers, affected by the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn, mostly postponed stockpiling and stayed on the sidelines. This round of price decline was not driven by significant fundamental bearish catalysts; the market generally judged that the correction was mainly led by capital trading activities. In the short term, the futures market remains under pressure and fluctuates. For refined cobalt to stabilize, two conditions are needed: first, an easing of corporate cash flow pressure and a reduction in market selling volumes; second, a stabilization of the cobalt salt and related product markets to form a price floor. Cobalt Intermediate Products: Cobalt intermediate product prices maintained a fluctuating trend this week. On the supply side, mainstream miners and traders maintained offers at $25.5/lb, but the cobalt salt market remained persistently weak. Downstream smelters adopted a conservative purchasing stance, with intended purchase prices generally below $25/lb. Currently, cobalt intermediate products carry a high premium compared to other cobalt raw materials. Some smelters plan to sell their intermediate products at $24.8-24.9/lb and instead purchase low-priced recycled black mass to reduce costs. On the logistics front, there have been no reports of leading miners booking shipping space collectively. Large volumes of cargo are expected to arrive at the port around August. In the short term, end-use demand support is insufficient, and prices are likely to stay flat. For the market to strengthen, a recovery in downstream operating rates combined with a restoration of cobalt salt prices is needed to form a joint support. Cobalt Sulphate: The cobalt sulphate market saw sluggish trading this week, with intensified bargaining between upstream and downstream, and prices continued to decline slowly. On the supply side, quotations from primary smelters remained firm, with mainstream quotation ranges at 87,000-90,000 yuan/mt. Some recycling smelters and traders, under cash flow pressure, released low-priced cargo, with offers falling to 82,000-84,000 yuan/mt. On the demand side, the persistent gradual decline suppressed downstream stockpiling enthusiasm, with downstream enterprises' psychological purchase prices at only 81,000-82,000 yuan/mt. The price spread between buyers and sellers was significant, making actual transactions difficult to complete. In the short term, the weak pattern of cobalt sulphate prices is difficult to change. A stabilization and rebound will require substantial fulfillment of downstream concentrated restocking demand. SMM New Energy Research Team Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lü Yanlin 021-20707875 Xiao Wenhao 021-51666872 Zhang Haohan 021-51666752 Wang Zihan 021-51666914 Wang Jie 021-51595902 Xu Yang 021-51666760 Yang Lianting 021-51595835 Wang Zhaoyu 021-51666827

SMM, June 12: This week, prices across the cobalt products complex continued their downward trend. Refined cobalt fell by 16,500 yuan/mt in a single week, while in the cobalt salt segment, spot quotes declined to varying degrees across the board except for cobalt sulphate, which held stable temporarily. Weak downstream demand was a key factor behind the relentless slide in prices for products along the cobalt industry chain... SMM has compiled this week's price changes for cobalt products as follows: : SMM spot price data showed that refined cobalt spot quotes moved lower this week. As of June 12, spot refined cobalt was quoted at 385,000-412,000 yuan/mt, with an average of 398,500 yuan/mt, down 16,500 yuan/mt from 415,000 yuan/mt on June 5, a decline of 3.98%. According to SMM, the price decline this week was driven by two main factors: first, during mid-week, ex-China price reporting platforms slashed the low-end price for cobalt intermediate products, weakening market sentiment and dragging down refined cobalt prices; second, this triggered forced stop-loss liquidation by some funds, further accelerating the magnitude of the pullback. From a supply-demand perspective, on the supply side, EXW prices from mainstream smelters held at 422,000 yuan/mt. After the rapid drop in refined cobalt prices, most traders suspended quoting, with only a small number of hedging traders selling limited cargoes at a slight premium to futures. On the demand side, the persistent downtrend suppressed downstream purchase willingness, with alloy and magnetic material enterprises mostly choosing to hold off on purchases and stay on the sidelines, in a "rush to buy amid continuous price rise and hold back amid price downturn" mentality. In the short term, the market is likely to remain in a volatile state under pressure; a stabilization in refined cobalt prices still depends on a return to stability in other cobalt products, particularly cobalt salts. For the raw material cobalt intermediate product, SMM spot price data showed that spot quotes for cobalt intermediate products edged down $0.1/lb this week to $24.9-25.5/lb, with an average of $25.2/lb, down 0.4% from June 5. On the supply side, quotes from mainstream miners and traders remained in the $25.5-26/lb range. Small volumes of lower-quality material changed hands at sub-$25/lb levels during the week, but the impact on mainstream prices was relatively limited given the significant quality discount and limited trading volume. In terms of shipments, the approval of Q1 2026 quotas continued to progress slowly due to complicated procedures. Coupled with tight local logistics in the DRC and the lower priority assigned to cobalt raw material shipments, the arrival of bulk cargoes at ports was further delayed, with current estimates pointing to a mass port arrival around August . In the short term, demand-side support remained weak, and prices may mainly move sideways. For the market to stabilize and strengthen going forward, it still depends on downstream demand recovery and the restoration of cobalt salt prices. Cobalt salt market ( and ): : According to SMM spot quotes, cobalt sulphate spot prices remained stable this week. As of June 12, cobalt sulphate spot quotes held steady at 88,000-92,000 yuan/mt, with an average of 90,000 yuan/mt, unchanged from June 5. In the spot market, according to SMM, the cobalt sulphate market atmosphere was sluggish this week, with the tug-of-war between upstream and downstream continuing and prices staying generally stable. On the supply side, mainstream smelters continued to hold prices firm, with the quotation range maintained at 88,000-92,000 yuan/mt. Some recycling smelters and traders, affected by cash flow pressures, lowered offers on small volumes of low-priced cargoes to 84,000-85,000 yuan/mt. On the demand side, the continued gradual price decline suppressed downstream purchase willingness, with some enterprises' target prices at only 81,000-82,000 yuan/mt, a large gap from sellers' offers that made actual transactions difficult. In the short term, cobalt sulphate prices are likely to remain in the doldrums, with market stabilization and recovery still awaiting the substantial release of concentrated downstream restocking demand. market: According to SMM spot quotes, cobalt chloride spot prices stabilized this week after falling 100 yuan/mt on June 11. As of June 12, cobalt chloride spot quotes ranged from 110,000 to 115,000 yuan/mt, with an average of 112,500 yuan/mt, a decline of 0.09% from June 5. In the spot market, according to SMM, the cobalt chloride market was overall sluggish this week. On the supply side, as the mid-year period approached, some enterprises continued to offer discounts to sell in response to performance and cash flow pressures, but downstream purchasing capacity was limited, and price cuts did not result in substantial volume increases. The market remained trapped in a passive volume discount situation. Top-tier players maintained their stance of holding prices firm, unwilling to sell at low prices, which provided bottom support for prices. On the demand side, end-user orders were weak, overall downstream stockpiling motivation was insufficient, and purchases remained wait-and-see. Overall, June cobalt chloride prices continued on a gradual weakening trend, with further downside in the short term. market: According to SMM spot quotes, the Co3O4 spot price fell by 1,500 yuan/mt on the last trading day of this week, to a range of 341,000-350,000 yuan/mt, with an average of 345,500 yuan/mt, a decline of 0.43% from 347,000 yuan/mt on June 5. Meanwhile, the Co3O4 spot market remained sluggish. From the supply-demand perspective, on the supply side, enterprises generally struggled to hold their offers, continuously selling at lower prices. However, driven by a mentality of “rush to buy amid continuous price rise and hold back amid price downturn,” successive price cuts intensified downstream wait-and-see sentiment, further suppressing purchase willingness. On the demand side, LCO producers still focused on customer-supplied materials and long-term contract deliveries, while spot demand continued to shrink, and the weak end-user market had begun to slow cargo pick-up under long-term contracts. In the short term, a market turnaround is unlikely, and against the backdrop of loosening cost support and inelastic demand, SMM expects the Co3O4 price center to continue shifting downward. In news, on corporate developments, according to Webstock Inc., on Thursday, June 11, Madagascar’s Ambatovy Mining announced that it had restarted production following a cyclone disaster in February and plans to produce 2,500 mt of nickel in June. Ambatovy added that cobalt production this month is expected to be around 250 mt. It is reported that the Ambatovy mine produces nickel briquettes and cobalt briquettes. In 2025, the mine’s nickel production was approximately 29,000 mt, and cobalt production about 2,700 mt. Tengyuan Cobalt, when responding to investor inquiries in early June, mentioned that as of the end of Q1 2026, the company already had 60,000 mt of copper product capacity and 31,500 mt in metal content of cobalt product capacity. GEM, during an investor survey on June 10, was asked “whether there is any quality difference between critical metals such as nickel, cobalt, and lithium extracted through the recycling system and those from virgin ore.” In response, GEM stated that after deep purification, the purity and performance indicators of critical metals such as nickel, cobalt, and lithium are fully consistent with the requirements of battery material production, and there is no quality difference. At the same time, the metal enrichment degree (grade) in “urban mines” such as power batteries is usually higher than that in natural mines, offering significant advantages in resource value and utilization efficiency. It is worth noting that at the , SMM Vice President Wang Cong mentioned when discussing cobalt resources that for the past several years, the DRC had always been the core supplier of global cobalt resources, but since last year's policy adjustments, Indonesia's share of cobalt production has increased significantly. Looking ahead over the next decade, the market share of cobalt contained in Indonesian MHP is expected to continue expanding, and the global cobalt supply landscape is evolving from a single-center structure centered on the DRC to a dual-center structure with both the DRC and Indonesia.

Raw material side, lithium carbonate prices edged up this week, nickel sulphate prices fluctuated, and cobalt sulphate prices continued to fall.

The China second-life application market was generally stable this week, with prices for most categories unchanged. On the cost side, lithium carbonate continued to rise this week, cobalt sulphate held steady, and nickel sulphate pulled back slightly. Quoted prices for ternary large-capacity EV-grade second-life battery cells eased downwards due to weak end-use demand in the EV sector, but no actual transaction prices pulled back, with buyers and sellers still locked in negotiation. LFP Grade A downgraded cells, serving as the mainstay of energy storage, saw firm prices and transactions dominated by rigid demand; Grade B cells, leveraging cost advantages, secured the low and mid-end market with stable transactions; dismantled cells, constrained by policies and safety regulations, faced sluggish acceptance and prices held steady at low levels.

Refined Cobalt: This week, refined cobalt spot prices continued to decline under pressure. Supply side, mainstream smelters kept EXW prices at 422,000 yuan/mt; after the rapid price drop, most traders suspended quotations, with only a few hedgers selling small volumes at a small premium to futures. Demand side, the continued downturn dampened downstream buying interest, and alloy and magnetic material enterprises, with a "rush to buy amid continuous price rise and hold back amid price downturn" mentality, mostly postponed purchases and remained on the sidelines. This week's price decline was driven by two factors: first, mid-week, an overseas price reporting platform sharply cut the low-end price of cobalt intermediate products, weakening market sentiment and dragging down refined cobalt prices; second, as a result, some funds were forced to cut losses and exit, further exacerbating the price pullback. In the short term, the market is likely to remain in a volatile and pressured state, and the stabilization of refined cobalt prices still depends on the return to stability of other cobalt products, especially cobalt salt prices. Cobalt Intermediate Products: This week, cobalt intermediate product prices edged lower. Supply side, mainstream miners and traders kept their quotations in the range of $25.5-26/lb; a small number of low-quality cargoes were traded below $25/lb during the week, but due to significant quality discounts and limited volumes, the impact on mainstream prices was relatively small. In terms of shipments, Q1 2026 quota approvals remained slow due to procedural complexity, and combined with tight logistics in the DRC and low priority for cobalt raw material shipments, the arrival of large volumes was further delayed. Current estimates suggest bulk arrivals may take place around August. In the short term, demand-side support remained weak, and prices may largely move sideways. For the market to stabilize and strengthen subsequently, it still depends on the recovery of downstream demand and the restoration of cobalt salt prices. Cobalt Sulphate: This week, cobalt sulphate trading was sluggish, with a continued tug-of-war between upstream and downstream, and prices held steady overall. Supply side, mainstream smelters continued to hold prices firm, with the quotation range maintained at 88,000-92,000 yuan/mt; some recycling smelters and traders, pressured by liquidity needs, lowered offers for small volumes to 84,000-85,000 yuan/mt. Demand side, the persistent price decline dampened downstream buying interest, and some enterprises indicated purchase intentions of only 81,000-82,000 yuan/mt, but the gap with sellers' offers was large, making actual transactions difficult. In the short term, cobalt sulphate prices are likely to remain in the doldrums, and a stabilization and recovery of the market still depends on the material release of concentrated restocking demand from downstream. SMM New Energy Research Team Wang Cong 021-51666838 Ma Rui 021-51595780 Feng Disheng 021-51666714 Lv Yanlin 021-20707875 Xiao Wenhao 021-51666872 Zhang Haohan 021-51666752 Wang Zihan 021-51666914 Wang Jie 021-51595902 Xu Yang 021-51666760 Yang Lianting 021-51595835 Wang Zhaoyu 021-51666827

This week, ternary cathode precursor prices weakened somewhat, with nickel sulphate prices slipping, while cobalt sulphate and manganese sulphate prices held steady. Regarding discounts, for June and Q2 orders, as sulphate raw materials were relatively tight and prices trended strong, some producers showed a willingness to increase discounts. For long-term contracts, some producers have already settled long-term agreements and no upward adjustments have been made. For spot orders, since nickel sulphate prices remained at relatively high levels, the nickel coefficient for some consumer-related spot orders in June rose notably, but cobalt sulphate prices performed relatively weakly, with the coefficient not yet rebounding significantly. On the production side, boosted by downstream demand from Europe, South Korea, etc., some producers' export orders performed well; meanwhile, driven by rising raw material prices and gradually improving end-use demand, downstream customers in China also entered a stockpiling phase, with top-tier producers maintaining relatively high production schedules. Looking ahead, sulphate prices have recently pulled back overall, and future new order prices will need to watch the pace of downstream stockpiling in Q3.

Developing local processing capacity is not simply a matter of building another plant next to a mine. It requires a country to simultaneously possess reliable energy supply, logistics infrastructure, chemical-industry capabilities, engineering expertise, customer qualification systems, access to financing, policy continuity and transparent pricing mechanisms. Resources can attract investment, but they cannot guarantee project success.