S&P Global Launches Daily Recycled Lithium Price Assessments
Platts, a division of S&P Global Commodity Insights, has made a significant advancement in the commodities market by launching the world's first daily spot market price assessments for recycled lithium carbonate.
The move addresses the growing demand for transparency and information in the evolving battery materials supply chain.
Lithium demand
With global attention increasingly focused on sustainability and the energy transition, S&P Global Commodity Insights anticipates a substantial rise in the role of recycled lithium.
According to the High Voltage Battery Recycling Study by S&P Global Mobility, China's total end-of-life battery availability is expected to surge from 16 GWh in 2023 to 438 GWh by 2032, representing a compound annual growth rate of over 44%.
Similarly, Japan and South Korea's end-of-life battery availability is forecast to reach 57 GWh by 2032, up from 2.3 GWh in 2023. These projections indicate that recycled battery materials will account for an increasingly significant share of global demand, particularly beyond 2030.
"Recycling lithium and other critical minerals will be essential to building a sustainable and resilient supply chain for the clean energy transition," states Fatih Birol, Executive Director of the International Energy Agency (IEA).
New price assessments for transparency
The introduction of new price assessments of recycled lithium carbonate delivered duty-paid (DDP) in China and cost, insurance and freight (CIF) to North Asia is in response to growing demand from market participants for pricing transparency and increased pricing information, as the recycled battery supply chain develops further.
The launch follows extensive market research and feedback, complementing S&P Global's existing suite of battery metals assessments in Asia, Europe and the US. It also builds on the successful addition of first-of-their-kind daily assessments for China, Europe and US black mass in 2023.
New price assessments
Keith Tan, Associate Regional Pricing Director for Asia Metals at S&P Global Commodity Insights, comments: "The world's first price assessment for recycled lithium completes Platts pricing offerings for the full lithium chain, from upstream spodumene concentrate to downstream lithium chemicals and circling back to upstream via black mass scrap and recycled origin material."
Demand for recycled lithium is expected to increase substantially as more batteries reach end of life in the next decade. For US and EMEA, which are budding markets in terms of battery recycling, visibility into Asia spot price activity for seaborne recycled lithium carbonate will pave the way for greater transparency in the recycling space."
Future of EVs and lithium demand
S&P Global Mobility forecasts that the number of global battery electric vehicles in operation will reach 171 million units by 2032. This anticipated increase in global EV sales will put significant pressure on the supply chain, especially on critical battery raw materials such as lithium.
Recycled lithium stands out as a sustainable and cost-effective lithium supply to manufacture EV batteries. By 2032, S&P Global Mobility estimates that around 900 GWh of end-of-life batteries will be available for recycling, equivalent to batteries for 12 million electric vehicles.
Leah Chen, Team Lead for Battery Metals at S&P Global Commodity Insights, adds: "From waste to wattage – recycled lithium reduces environmental impact while championing closed-loop systems, providing a sustainable solution to meet the growing demand for battery materials."
Technical specifications of the assessments
The Platts recycled lithium carbonate DDP assessments reflect standard battery grade quality at 99.5% Li2CO3 and other specifications, with a minimum of 20 metric tons, powder packed in bags, delivered within 14 days forward, expressed in Yuan per metric ton.
The Platts recycled lithium carbonate CIF assessments reflect similar quality and volume specifications but are for delivery 15-60 days forward and are in US dollars per ton. Indications for other qualities are considered and normalised to Platts base standard specification, subject to prevailing market differentials.
S&P Global's introduction of daily recycled lithium price assessments marks a significant step toward greater market transparency and sustainability. It's an initiative poised to support the growing demand for recycled lithium in the global battery materials supply chain, aligning with broader environmental goals and the push for sustainable energy solutions.
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