The global market for black mass—the crushed intermediate material produced from shredding spent lithium-ion batteries—has reached $2 billion in annual trading volume, driven by surging demand from hydrometallurgical refineries competing for recycling feedstock. Average prices have risen 35% year-over-year as refiners race to secure material ahead of tightening recycled content mandates.
Supply-Demand Dynamics
Current global black mass production of approximately 180,000 tonnes annually falls well short of the 400,000 tonnes of refining capacity now operational or under construction. This deficit has created a seller’s market benefiting collection and pre-processing operators while squeezing margins for downstream refiners.
The emergence of a liquid trading market for battery recycling intermediates signals the maturation of the sector from waste management to commodity supply chain, with standardised grading and pricing mechanisms now being developed by the London Metal Exchange.
