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Black mass battery recycling: Recovery, market growth and developments

Black mass is the latest innovation in commercial recycling, addressing the growing issue of battery waste.

Black mass is composed of crushed remnants from batteries, containing valuable metal components that can be reused to manufacture new batteries.

This article explains everything you need to know about black mass recycling. Here’s what we cover:

• The growing problem of battery waste
• How battery waste becomes black mass
• Black mass: A new commodity in the battery supply chain
• The development of black mass recycling
• How businesses can recycle lithium-ion batteries

The growing problem of battery waste

Batteries are now central to modern life, powering everything from consumer electronics to electric vehicles (EVs).

Their lifespan can range from just two years in lower-end smartphones to as much as twenty years in EVs. Once they reach the end of their life, these batteries can no longer be recharged, creating a challenging and hazardous waste stream.

To recover valuable materials such as lithium, cobalt, and nickel, spent batteries are shredded and processed into what is known as black mass. This material is the crucial first step in recycling and reintroducing critical raw materials back into the supply chain.

How battery waste becomes black mass

Turning spent batteries into black mass involves a carefully managed recycling process. Facilities first dismantle and make the batteries safe to handle before crushing and shredding them into smaller pieces. The result is a fine powder known as black mass.

This material contains high concentrations of essential metals such as lithium, cobalt, nickel, and manganese, all of which are needed to manufacture new batteries. By processing battery waste into black mass, recyclers create a concentrated source of these critical raw materials that can be further refined for reuse.

Black mass recycling is increasingly seen as an environmentally friendly alternative to mining, which helps to conserve natural resources and reduce dependence on imported metals. It also plays a vital role in building a circular economy for batteries, where valuable materials are recovered and fed back into production rather than lost as waste.

Black mass: A new commodity in the battery supply chain

As demand for lithium-ion batteries accelerates, so too does the pressure on traditional mining. Many of the world’s key deposits of lithium, cobalt, and nickel are located in regions with high environmental impacts, weak regulatory oversight, or serious human rights concerns. At the same time, the cost and difficulty of extracting new raw materials from the earth continue to rise.

Black mass offers a powerful alternative. Instead of relying solely on mining, recyclers can extract high concentrations of critical metals directly from spent batteries. In many cases, the metal content of black mass rivals or even surpasses that of conventional ores and concentrates.

By reframing battery waste as a resource, black mass is becoming a valuable new commodity in the global supply chain. It reduces reliance on risky mining operations, supports more secure access to strategic materials, and helps industries move toward a circular economy where resources are continually recovered and reused.

Source: AquaMetals

Why the black mass recycling market is growing

The black mass recycling market is expanding rapidly as industries look for secure and sustainable sources of critical raw materials. Several factors are driving this growth:

• Environmental pressure: Governments and regulators are tightening rules on battery waste, encouraging recycling to reduce landfill and cut reliance on mining.
• Supply chain security: Countries and manufacturers aim to reduce their dependence on mined materials from regions associated with political instability or poor labour practices.
• Corporate investment: Mentions of black mass in earnings reports from major players like Glencore and BASF highlight its recognition as a valuable, tradable commodity.
• Economic incentives: The high concentrations of lithium, cobalt, and nickel in black mass make it a competitive alternative to virgin mining, creating strong commercial motivation for recyclers.

Together, these factors are pushing battery manufacturers, recyclers, and investors to accelerate the development of dedicated black mass recycling facilities worldwide.

The development of black mass recycling

Governments worldwide, including the UK, are incentivising the construction of black mass recycling facilities to help retain this valuable resource within their borders.

Here’s a summary of the latest developments in the world’s major economies.

EU: Battery Regulations

The EU has implemented regulations to significantly restrict the export of black mass to enhance its circular economy and secure valuable battery raw materials within the bloc. The new EU Battery Regulation, adopted in June 2023, stipulate that by no later than December 31, 2031:

• EV batteries sold in the bloc must source a proportion of its metals from recycling (to incentivise recycling facilities within the EU).
• EU recyclers must achieve ambitious material recovery rates (to ensure they can compete with their Asian counterparts).

Additionally, there’s an attempt to classify black mass as ‘hazardous waste’ to make exporting it abroad more challenging. Other EU politicians are proposing an outright ban on black mass exports outside of the bloc.

US: Tax credits & incentives

Following the adage: “The EU regulates, the US innovates”, America is encouraging more US-based metal recyclers who can process black mass by throwing money at it. The Inflation Reduction Act, for instance, includes provisions that favour the use of domestically recycled materials in manufacturing processes by offering tax credits.

The Department of Energy has invested heavily in the US battery recycling industry, with federal loans totalling $2.3Bn given to Redwood Materials and Li-Cycle.

India: Tech development

While India lags in EV adoption, its colossal population’s use of everyday electronics like smartphones and laptops generates vast amounts of battery waste.

India has a fast-growing battery manufacturing sector and does not produce raw materials domestically.

To reduce reliance on imports, local black mass recycling capacity is expanding and can now process over 20,000 tonnes of battery scrap each year.

China: Building deeper moats

China, already dominating the market, continues building taller walls around its insular market. In 2024, China accounted for almost half of global EV sales meaning that China is the leading producer of black mass.

As a result, they have already implemented policies to ensure a closed-loop system where all spent batteries can be fully recycled in-house to produce even more batteries.

Black mass recycling in the UK

The UK is still developing its black mass recycling capacity. Current battery legislation, based on the 2009 Waste Batteries and Accumulators Regulations, set recovery targets but make no direct reference to black mass.

EV batteries are already banned from landfill, and government consultations are underway on updated rules to align with circular economy goals and prevent the export of black mass to countries like China.

Two major projects mark the UK’s progress:

• Wolverhampton: Recyclus Group opened the UK’s first industrial-scale lithium battery recycling facility in 2023. It is permitted to process up to 22,000 tonnes of batteries a year, producing black mass under an offtake agreement with Glencore.
• Newcastle/Teesside: Altilium Metals is developing a large-scale plant with the capacity to recover around 40,000 tonnes of black mass annually. Its process will refine metals into battery-grade materials for reuse in the UK EV sector.

While overall capacity remains limited compared with the EU and Asia, these projects are an important step in creating a domestic circular economy for batteries.

How businesses can recycle lithium-ion batteries

Whatever happens to the black mass market over the next few years, your company can do its part by ensuring any spent batteries are destined for recycling and not end up in landfill, where their precious metal contents may be forever lost.

Firstly, contact the retailer where you purchased your electronics. Most must take back any electronics and their batteries sold to you.

Alternatively, some commercial waste collection providers offer one-off battery collection and disposal services. There are two types of collection services for batteries:

• Batteries found in IT equipment, phones, etc., which are non-hazardous.
• Car batteries which are classed as hazardous waste.

Battery recycling facilities in the UK

While the UK’s battery recycling capacity is still limited compared with Europe and Asia, several key facilities are now operational or developing. These plants focus primarily on lithium-ion batteries from EVs, energy storage, and consumer electronics.

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