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.

This week, ternary cathode material prices edged slightly lower, though the overall change remained limited. On the raw material front, cobalt sulfate prices held steady, manganese sulfate saw a modest increase, while nickel sulfate declined slightly. Lithium carbonate and lithium hydroxide prices also softened. Spot lithium salt prices are currently range-bound, with the future trend still uncertain. Further guidance from overseas supply-side developments remains to be monitored. On transaction activity, payable levels for EV market orders showed no notable changes recently. In the consumer and e-mobility markets, some battery cell manufacturers conducted batch price-linked restocking during this week's period of low-range lithium salt price fluctuations, resulting in slightly more active transaction activity compared to the previous week. On the demand side, the domestic EV market showed modest recovery, though the increase was limited, and manufacturers remain cautious about future production schedules. Demand in the e-mobility market remained relatively subdued, with production still largely based on sales orders and need-based procurement. On overseas orders, after the export rush period ended in April, order volumes declined, though the magnitude of the decline was smaller than previously expected. Based on current conditions, overall industry production in April is still expected to see a certain degree of decrease compared with March.

Most second-quarter orders in the domestic EV market have been signed sequentially. While some manufacturers saw modest upward adjustments in payables, overall market changes remained limited.

The United States currently operates no domestic nickel smelters, leaving North America entirely reliant on just two remaining pyrometallurgical facilities in Canada. Compounding this critical supply chain vulnerability, a recent report by the Carnegie Endowment for International Peace projects that the US will face a massive annual nickel deficit of approximately 741,987 tonnes by 2035. To address this severe shortfall, awaruite (a naturally occurring nickel-iron alloy) is emerging as a strategic solution. Because awaruite concentrate can bypass traditional smelting and be directly converted into nickel sulfate, it is favorably positioned to qualify for the US Section 45X Advanced Manufacturing Production Credit, helping to secure domestic defense and EV battery supply chains.

Current manufacturer expectations for this month and April remain cautious, with some companies having already lowered their April production forecasts.