SMM

Lithium Ore:

This week, spodumene prices remained basically flat WoW, while lepidolite prices rose slightly. For spodumene, overseas mine quotations remained high, but buyers negotiated with strong price suppression attitudes. Coupled with occasional small-volume transactions below $880/mt CIF SC6, the market showed weak purchase willingness for high-priced lithium ore. In the domestic market, most spot lithium ore originated from regions like Africa. While domestic spot ore quotations were slightly higher than lithium chemical prices due to the sustained high prices of Australian ore, overall inquiry and transaction activities were better domestically than overseas. For lepidolite, two high auction transaction prices last week pushed up the overall market price, with other lepidolite concentrate suppliers raising their quotations accordingly. On the demand side, as production resumed, non-integrated lithium chemical plants generally had low lepidolite concentrate inventories, leading to strong recent stockpiling willingness. As a result, lepidolite ore prices remained at high levels.
Lithium ore prices are expected to trend downward in the short term, following lithium chemical prices.

Lithium Carbonate:

This week, spot lithium carbonate prices fluctuated within a range, with the weekly average price dropping by approximately 400 yuan/mt WoW.
Demand side, downstream material plants had sufficient stockpiles before the Chinese New Year, resulting in only limited just-in-time restocking needs after the holiday. Additionally, some downstream material plants, considering the lack of clear production guidance for March, adopted a cautious and wait-and-see approach, with minimal stockpiling purchases. Market transactions were relatively subdued. Supply side, most lithium chemical plants completed maintenance and resumed normal production levels, while some were ramping up production. Domestic lithium carbonate output showed a clear upward trend. Combined with imported lithium carbonate, domestic lithium carbonate is expected to remain in surplus in February, with a relatively large surplus margin. Spot lithium carbonate prices are more likely to fall than rise.

Lithium Hydroxide:

This week, lithium hydroxide prices showed a downward trend WoW and are expected to decline further in the short term. Before the holiday, most ternary cathode material plants had sufficient stockpiles, and post-holiday demand recovery was weak with low expectations, resulting in no significant spot order procurement. Some material plants even intended to sell lithium hydroxide to adjust inventories. Some upstream lithium chemical plants, facing weak downstream demand and inventory pressure, maintained low production levels, with their sentiment to stand firm on quotes softening. Market prices showed some downside room. In the short term, lithium hydroxide market prices lack upward momentum and are likely to fluctuate downward amid weak demand, with market sentiment remaining pessimistic.

Refined Cobalt:

This week, refined cobalt prices remained stable. Supply side, current spot market inventories were ample, with sufficient circulating supply. Demand side, there was just-in-time inquiry demand downstream, but transaction volumes were limited. Overall, due to the evident oversupply in the market, both refined cobalt producers and traders held certain inventory levels, leading to weak spot prices. Refined cobalt spot prices are expected to decline further due to the clear oversupply situation.

Intermediate Products:

This week, cobalt intermediate product prices dropped slightly. Supply side, spot availability remained sufficient. Demand side, downstream maintained just-in-time procurement, with limited inquiry and transaction activities. Overall, the market continued to face an oversupply situation, putting downward pressure on spot prices. In the future, as spot transaction prices approach long-term contract prices, the downside room for cobalt intermediate product prices is expected to be limited.

Cobalt Salts (Cobalt Sulphate and Cobalt Chloride):

This week, cobalt salt prices declined slightly. Supply side, cobalt salt smelters maintained low operating rates. Demand side, the market only met basic procurement needs, with overall performance weak and transaction volumes subdued. Due to the inactive trading atmosphere, prices struggled to remain stable and declined further. Next week, with no substantial improvement expected in market supply and demand, spot prices are likely to face a slight downward risk.

Cobalt Salts (Co3O4):

This week, Co3O4 prices declined slightly. Supply side, smelters mainly focused on fulfilling previous orders, with the market not yet fully active. Demand side, post-holiday, the market generally adopted a wait-and-see attitude, with weak spot demand. Overall, as downstream enterprises completed restocking before the holiday, the market was relatively subdued this week, and spot prices struggled to remain stable, showing a decline. Looking ahead to next week, downstream LCO enterprises may have some procurement demand, with increased inquiry activities expected. The market atmosphere may improve, and Co3O4 prices are expected to remain stable temporarily without further declines.

Nickel Sulphate:

As of this Thursday, the SMM battery-grade nickel sulphate index price was 26,588 yuan/mt, with the quotation range for battery-grade nickel sulphate between 26,400 and 27,060 yuan/mt. The average price declined WoW. Demand side, ternary cathode precursor enterprises faced weakened end-use demand and reduced orders, leading to lower nickel salt demand. Additionally, most precursor manufacturers had stocked up for February before the holiday, resulting in fewer inquiries this week. Market activity declined WoW, remaining at low levels. Supply side, some nickel salt smelters, facing losses, had not resumed production. Most nickel salt smelters maintained quotations at last week's levels. With downstream ternary cathode precursor plants showing no improvement in March production schedules, nickel salt demand is expected to remain low in March. Currently, the nickel salt supply-demand relationship is expected to remain tightly balanced in March. Next week, during the traditional nickel salt procurement period, transaction prices are expected to remain stable.

Ternary Cathode Precursors:

This week, prices for 5-series consumer-grade, 6-series consumer-grade, and 8-series power-grade ternary cathode precursors all declined. On the raw material cost side, nickel sulphate and cobalt sulphate prices decreased, while manganese sulphate prices rose, leading to varying degrees of price declines across precursor series. Demand side, overall demand for ternary cathode materials was weak this month, as both power and consumer terminals entered the off-season, reducing precursor demand. Supply side, precursor producers faced cost pressure and generally showed sentiment to stand firm on quotes. The enthusiasm for signing long-term contracts this year was lower than last year. Due to fewer calendar days and reduced downstream orders, industry operating rates declined. Looking ahead to next week, nickel sulphate and cobalt sulphate prices are expected to remain stable, while manganese sulphate prices may rise slightly. Based on the expected increase in metal salt prices and the sentiment to stand firm on quotes among precursor producers, ternary cathode precursor prices are expected to rise to varying degrees.

Ternary Cathode Materials:

This week, due to weak post-holiday downstream procurement demand and declining lithium chemical prices, prices for various ternary cathode materials decreased. Among them, 5-series and 6-series materials saw significant cost and price declines due to falling lithium carbonate prices. In contrast, 8-series materials maintained stable costs, as lithium hydroxide and sulphate raw material prices showed no significant fluctuations this week, resulting in a stable cost structure.
On the production and supply side, the recovery of March order demand varied among ternary cathode materials. Orders for 6-series materials were relatively optimistic, while 5-series and 8-series materials might fall short of pre-holiday expectations. Many enterprises remained in a wait-and-see mode, awaiting downstream order trends at the end of February to decide future production plans. Overall, industry concentration continued to increase, with small and medium-sized enterprises experiencing significant order reductions. Market competition intensified, with resources and orders concentrating among top-tier enterprises.

LFP:

This week, LFP market prices remained relatively stable. Lithium carbonate prices fell slightly by about 30 yuan/mt this week, while processing fees showed no significant changes. Regarding lithium carbonate discounts, downstream battery cell manufacturers generally aimed to lower discounts, but the outcomes varied depending on negotiation conditions. Supply side, LFP material plants maintained stable operating conditions overall, though some medium and small-sized LFP plants reduced or halted production. Top-tier material plants maintained stable production. Demand side, some downstream battery cell manufacturers slightly reduced February procurement volumes, leading to minor adjustments in the supply chain structure. Overall, February inventories remained in a state of inventory buildup.

Iron Phosphate:

This week, the iron phosphate market showed mediocre performance, with a slightly weak supply-demand relationship and stable prices. Although raw material costs provided some support to prices, preventing significant declines, the weakened downstream demand left little room or momentum for further price increases. Some undigested inventories remained in the market, requiring time to gradually reduce and balance supply and demand. During this period, market participants generally adopted a cautious attitude, with relatively conservative trading activities.
Looking ahead to March, the market is expected to see some recovery. With the gradual digestion of inventory and the rebound in downstream demand, the production schedules of iron phosphate enterprises are also likely to increase accordingly. Co3O4: This week, LCO prices continued their slight downward trend, with the latest prices for 4.2V, 4.4V, and 4.5V LCO at 134,000 yuan/mt, 138,000 yuan/mt, and 149,000 yuan/mt, respectively. Raw material side, Co3O4 prices dropped significantly, while battery-grade lithium carbonate prices showed little change, leading to a decline in LCO costs. Supply side, affected by the off-season and the reduced number of calendar days in February, LCO production decreased MoM. Demand side, although subsidies for digital products boosted sales in the 3C digital market, driving a recovery in LCO demand, the overall market remained in a slow recovery phase. It is expected that with further implementation of supportive policies, LCO demand may continue to rebound, and prices are likely to stabilize. Anode: This week, most anode material prices showed varying degrees of increase. Cost side, petroleum coke prices continued to rise due to the impact of tax policy, the suspension of production for maintenance by several petroleum coke plants, and the significantly increased demand for low-sulphur petroleum coke from anodes. Similarly, needle coke, also affected by tax policy, remained in a low-price range, leading to further price increases this week. The integrated development of anodes continued, and the oversupply in the outsourced graphitisation market remained difficult to change. However, as graphitisation prices approached the cost line, they remained stable this week. Demand side, while signs of market recovery were evident, the pace was relatively slow, and demand improvement was not significant. In summary, under the backdrop of high theoretical costs, anode material producers showed a strong sentiment to stand firm on quotes. However, constrained by price suppression from battery cell manufacturers, the price increase for anode materials was limited this week. It is expected that the price increase for anode materials may expand in the future. Separator: This week, lithium battery separator material prices remained stable. After a prolonged price war and price suppression by battery cell enterprises, separator material prices are currently at a low level, extremely close to the cost line. This has led separator enterprises, especially dry-process separator producers, to exhibit a strong sentiment to stand firm on quotes. In terms of supply and demand, the market showed slight signs of recovery, but the pace of recovery remained slow, and downstream demand was still weak. The operating rate of separator enterprises did not show significant improvement. Under the condition of weak supply and demand, downstream battery cell manufacturers have mostly stopped suppressing prices to maintain procurement volumes, resulting in stable separator prices this week. Looking ahead, the separator industry still has new capacity that has not yet reached full production, and the separator market may remain in a state of oversupply. To compete for market share, separator enterprises may continue to engage in intense price competition. Electrolyte: This week, electrolyte prices remained stable. Supply side, after the Chinese New Year holiday, market demand remained weak. LiPF6 production was order-based, and electrolyte producers picked up goods based on orders, keeping prices stable. Demand side, demand for electrolytes from battery cell manufacturers remained low, with order-based procurement. Cost side, prices of LiPF6, additives, and solvents remained temporarily stable. Currently, overall electrolyte prices are mainly influenced by LiPF6 prices. However, due to price suppression from battery cells, electrolyte prices remained stable. The price of ternary power battery electrolyte ranged from 21,100 to 29,550 yuan/mt, while LFP battery electrolyte prices ranged from 16,800 to 25,550 yuan/mt. In the short term, fluctuations in the cost side are expected to cause electrolyte prices to oscillate within a certain range. Sodium-ion Battery: This week, the sodium-ion battery market remained in the off-season, with production and sales still in the preparation stage. New capacity is expected to be launched intensively in Q2, with corresponding demand growth. In the short term, the sodium-ion battery market still faces certain pressure, and enterprises need to closely monitor market dynamics and flexibly adjust production plans and sales strategies to cope with market uncertainties. The sodium-ion battery industry is still in a critical stage of capacity digestion and technological iteration, with cost reduction and performance breakthroughs likely to become key focuses in H2. Recycling: This week, prices in the recycled scrap market showed a slight increase. Supply side: Following the end of the Lantern Festival last week, most wet-process plants have basically resumed normal production. Despite the continued decline in nickel salt and cobalt salt prices and the fluctuating operation of lithium carbonate prices, most powder producers and traders still tended to maintain strong prices. Although some wet-process plants made small purchases of high-priced black mass to maintain low production rates, many producers had already completed raw material procurement for February in January. As a result, despite increased market activity compared to last week, the room for price increases was limited. Most enterprises, due to pessimistic expectations for future salt prices and existing inventory, saw limited transaction price increases. Compared to February prices, most enterprises are more focused on the recovery of demand and salt price trends in March, mainly because some recycling enterprises are expected to start production and stockpile during this period, while the inventory of enterprises that stockpiled earlier has been largely depleted. Downstream and End-User: This week, DC-side battery cabin prices remained stable. The average price for a 5MWh DC-side battery cabin was 0.43 yuan/Wh; for 3.44/3.77MWh DC-side battery cabins, the average price was 0.438 yuan/Wh. Prices for 280Ah and 314Ah energy storage battery cells showed little fluctuation, and overall DC-side battery cabin prices remained stable. On February 18, Shenzhen Energy Harmony Power (Heyuan) Co., Ltd. announced the candidates for the procurement of battery cabins and auxiliary equipment for its electrochemical energy storage joint frequency regulation project. The project plans to build a 20MW/20.872MWh electrochemical energy storage system in the first-phase plant area of Heyuan Power Plant to achieve AGC frequency regulation auxiliary services for thermal power units. The first candidate's bid was 12.21 million yuan, with a unit price of 0.585 yuan/Wh. The second candidate's bid was 12.63 million yuan, with a unit price of 0.605 yuan/Wh. 》Subscribe to view historical spot prices of SMM new energy products 》Click to view the SMM new energy industry chain database News: 【Institution: Global NEV Sales Expected to Grow 18% YoY in 2025】According to the latest statistics from TrendForce, global sales of new energy vehicles (NEVs), including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell vehicles, are expected to reach 16.29 million units in 2024, up 25% YoY, with the Chinese market's share expanding to 67%. Global NEV sales in 2025 are projected to grow 18% YoY. 【Yu Chengdong: Zunjie S800 to Debut Industry's First 6C Ultra-Fast Charging Battery Pack】Yu Chengdong, Huawei's Executive Director, Chairman of Terminal BG, and Chairman of the Intelligent Automotive Solution BU, stated today that the Zunjie S800 will debut the industry's first 6C ultra-fast charging battery pack. Huawei's Giant Whale Battery 2.0 has a capacity of 65 kWh, with a 10%-80% charge taking only 10.5 minutes. 【MOFCOM Responds to EU Anti-Subsidy Case on Chinese EVs】On February 20, the Ministry of Commerce held a regular press conference. Reporter: Recently, the Ministry of Commerce held talks with the European Automobile Manufacturers Association regarding EV tariffs. What measures will be taken next to reach an agreement? How does the Ministry of Commerce view the prospects for China-EU trade and commercial relations this year? Is there an opportunity to restart the China-EU Comprehensive Investment Agreement? MOFCOM Spokesperson He Yadong: The EU's anti-subsidy case on Chinese EVs has drawn widespread attention from various sectors in China and the EU. On February 14, Oliver Zipse, Chairman of the European Automobile Manufacturers Association and Chairman of the Board of Management of BMW Group, held a video call with Minister Wang Wentao, reiterating the European automotive industry's support and expectation for resolving differences through dialogue and consultation as soon as possible. China has always made its utmost efforts to promote dialogue and consultation, hoping that the EU will listen to the industry's voices and take practical actions to work with China in the same direction. Following the principles of "pragmatism and balance," both sides should address each other's reasonable concerns and jointly push for fruitful consultations. China and the EU are important economic and trade partners, with complementary advantages and mutual benefits forming a strong economic symbiotic relationship. This year marks the 50th anniversary of China-EU diplomatic relations. Recently, President Xi Jinping had a phone call with European Council President Charles Michel, providing political guidance for China-EU economic and trade cooperation. China is willing to work with the EU to implement the important consensus reached by the leaders of both sides, expand mutual openness, and explore green industry cooperation, including EVs. Through dialogue and consultation, economic and trade frictions can be properly addressed, and bilateral investment cooperation can be upgraded. The China-EU Investment Agreement is a balanced, mutually beneficial, and high-level agreement. Once effective, it will play an important role in the high-quality development of China-EU economic and trade relations. We look forward to the EU promoting the early signing and implementation of the agreement. SMM New Energy Research Team Cong Wang 021-51666838 Rui Ma 021-51595780 Ziya Lin 86-2151666902 Ye Yuan 021-51595792 Disheng Feng 021-51666714 Ying Xu 021-51666707 Yanlin Lü 021-20707875 Yujun Liu 021-20707895 Zhicheng Zhou 021-51666711