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| Chinese lithium carbonate prices |
Lithium Carbonate Drives LFP Black Mass Prices
Chinese lithium carbonate prices surged due to strong demand from energy storage and battery manufacturers. LFP black mass prices followed upward trends, reflecting lithium market volatility. Meanwhile, NCM black mass remained stable despite cobalt supply constraints. As a result, recyclers face tighter margins and higher acquisition costs for battery scrap.
EOL Batteries Tighten Supply
End-of-life (EOL) LFP batteries experienced faster price increases than NCM batteries. Limited availability of EOL batteries pushed prismatic LFP scrap prices to nearly 10,000 yuan per tonne. Consequently, many spent batteries shifted to secondary use rather than formal recycling. Recycling companies must navigate higher costs while maintaining sufficient feedstock for production.
Market Sensitivity and Future Outlook
LFP black mass prices are more sensitive to lithium fluctuations than NCM black mass. Meanwhile, cobalt supply restrictions in the DRC supported NCM payable levels in China. Therefore, battery scrap markets may see continued price volatility. Energy storage growth and EV demand will likely sustain elevated scrap and black mass pricing.
ScrapInsight Commentary
Rising LFP and NCM black mass prices highlight the growing influence of lithium and cobalt markets on recycling economics. Limited EOL battery availability may constrain feedstock, increasing operational costs for recyclers. Strategic sourcing and secondary utilization are now critical for sustainable battery recycling.
