China's battery recycling market showed a mixed performance in the week ending July 20, 2026, with payables for NCM ternary black mass and cobalt-based black mass holding stable, while lithium iron phosphate (LFP) black mass prices continued to weaken, according to Mysteel's weekly market review. Payables for NCM ternary battery powder were recorded in the range of 73% to 75%, while NCM ternary cathode scrap powder commanded slightly higher payables of 77% to 79%. In the lithium cobalt oxide (LCO) segment, cobalt-salt payables for battery powder stood at 72% to 73%, with cathode scrap powder fetching 78% to 79%.
The LFP black mass segment presented a more challenging picture. Lithium-point prices for LFP black mass continued their downward trajectory, with persistent pressure on lithium carbonate prices identified as the most significant risk factor currently facing the broader black mass market. Lithium carbonate remains a critical pricing benchmark for LFP-derived recycling streams, and its ongoing weakness is weighing heavily on market sentiment.
A structural supply-side challenge is also emerging in the LFP recycling space. The continued expansion of physical recycling capacity is intensifying competition for high-quality LFP scrap feedstock, creating additional headwinds for processors relying on premium input materials. The contrast between the relative stability seen in NCM and LCO payables versus the softness in LFP pricing highlights the divergent dynamics currently at play across China's battery recycling value chain, driven by differing chemistry exposures and raw material price trajectories.
Source: Mysteel, July 20, 2026.
Source: mysteel.net