‘Battery recycling potential despite price drops’

While the market for battery materials has been volatile, Black Mass recycling remains a promising business as demand is expected to surge in the coming years, according to Fastmarkets editor Lee Allen.

At the BIR conference in Singapore, Allen highlighted the evolving market for Black Mass, the powder derived from shredded lithium-ion batteries that contains valuable metals such as cobalt, nickel, and lithium as well as manganese and copper.

‘Battery materials have absolutely crashed in value over the last year,’ Allen said. Fastmarkets data showed a 54% drop in lithium carbonate prices year-on-year as of mid October, along with a 34% fall for cobalt and an 8% decline in nickel prices on the London Metal Exchange. This sharp price drop has led to smaller profit margins for Black Mass refiners, making it more challenging to operate in the current market.

Regulation biggest driver

Despite these challenges, Allen insisted on the sector’s promising outlook, citing the EU’s Battery Regulation as a key driver. The new regulations will require recycled content in batteries – 6% for lithium and nickel, and 16% for cobalt by 2031. ‘This will boost Black Mass demand globally, not just in Europe,’ Allen observed. He estimated that over 2 million tonnes of Black Mass will be produced worldwide by 2034.