This week, ternary cathode precursor prices increased. Today, nickel sulphate prices rose slightly, cobalt sulphate prices remained stable, and manganese sulphate prices edged up only marginally.

【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 Cobalt Morning Meeting Summary: This week, the spot price of refined cobalt maintained a fluctuating trend. On the supply side, due to the slightly lower economic efficiency of refined cobalt production, the operating rate of smelters remained low, resulting in a slight decline in the supply of refined cobalt. On the demand side, influenced by the policy-related news from the DRC, some smelters and traders reported an increased willingness of downstream producers to inquire about prices. However, currently, most buyers and sellers are still in the negotiation stage, and overall market transactions remain weak. It is expected that before the official implementation of the policy, the spot price of refined cobalt will likely continue to fluctuate.

This week, prices of 5-series, 6-series, and 8-series products in the ternary cathode precursor market continued to decline.

The imported coal market continues to operate steadily, and the cost of manganese sulphate provides weak support for the current market conditions. Meanwhile, the limited procurement orders in the downstream market have curbed the demand for price increases of manganese sulphate. In the case of a supply surplus, it is necessary to continue to monitor the demand guidance for precursors.

This week, manganese ore offers remained consolidated, with actual transaction prices declining. South 32's Australian manganese ore arrived at the port this week, leaving room for profit margins and not lacking in low-priced shipments. The fluctuation range of other ore types narrowed, but the volume of transactions remained low. In the short term, manganese ore prices are expected to remain in the doldrums. The imported coal market operated steadily. The support of manganese sulphate costs to market conditions was weak, with limited procurement orders from the downstream market, suppressing the demand for manganese sulphate price increases. Under the situation of supply surplus, continuous attention needs to be paid to the demand guidance of precursors.

This week, prices of 5-series, 6-series, and 8-series products in the ternary cathode precursor market continued to decline.

[SMM Analysis: Cathode Material Production Increased MoM in May, While Downstream End-use Demand Growth Remained Sluggish] SMM reported on June 4: In May, total lithium carbonate production decreased by 2% MoM but increased by 15% YoY; lithium hydroxide production remained largely stable MoM but decreased by over 20% YoY; cobalt sulphate production decreased by 13% MoM; Co3O4 production increased slightly both MoM and YoY; ternary cathode precursor production decreased by 3.99% MoM but increased by 4.53% YoY; ternary cathode material production increased by 3.52% MoM and 23.91% YoY; the iron phosphate market remained stable, with production increasing by 2% MoM and 38% YoY; LFP production increased by approximately 6.7% MoM and 43% YoY; LCO production increased by 6% MoM.

[May's ternary cathode precursor production down 3.99% MoM] In May 2025, SMM's ternary cathode precursor production decreased by 3.99% MoM and increased by 4.53% YoY.

Currently, long-term agreement orders still dominate market transactions. Affected by the limited acceptance of spot order prices by downstream buyers and their strong desire to bargain down prices, producers maintain a firm stance of refusing to budge on prices, resulting in an ongoing tug-of-war between buyers and sellers. The purchase of manganese sulphate is relatively unstable, and the precursor market is rather mediocre. Against the backdrop of high cobalt sulphate prices, some producers have optimized their product mix, increasing the proportion of medium-to-high nickel precursors in their output.