Lithium prices have climbed from about $8 to $22 in a year, ending a nearly three-year slide in secondary battery raw materials, helping resource recyclers that extract and resell metals from used batteries. The recovery in selling prices is raising expectations that a loss-making stretch of more than 10 quarters could shift to profit. Analysts also point to improving utilisation at new plants. The outlook hinges on supply, including expected new lithium mine operations by China’s CATL in the second half.

A sharp rise in lithium prices has helped restore the economics of used battery recycling, lifting margins for processes that extract metals from black mass. The supply structure is also shifting as first-generation electric vehicles begin reaching end-of-life, increasing the share of metals recovered from batteries after use. Regulations in the European Union and incentives under the U.S. Inflation Reduction Act are supporting demand by requiring or encouraging recycled content and qualifying recycled minerals for subsidies.