Shares in Technology Minerals PLC (LSE:TM1) rose 273% after its subsidiary, Recyclus Group, secured a black mass offtake agreement with Glencore PLC (LSE:GLEN). The deal marks a significant step for Technology Minerals as it seeks to establish itself in the rapidly expanding battery recycling market.
So, what is black mass?
It refers to the shredded material derived from spent lithium-ion batteries, containing critical metals such as lithium, nickel, cobalt and manganese. These metals can be recovered and reintegrated into the supply chain for battery manufacturing. The recycling process involves collecting used batteries, dismantling them, and crushing the components to produce a black powdery material. This process offers an environmentally sustainable alternative to traditional mining and addresses the growing challenge of battery waste.
Recyclus-Glencore agreement
Under the agreement, Recyclus will supply product from its industrial-scale recycling facility in Wolverhampton to Glencore’s European operations. The deal begins with a 100-tonne trial phase, after which both parties will reassess commercial terms.
Robin Brundle, chairman of Technology Minerals and director of Recyclus, described the deal as a “key milestone” for the company’s mission to support a sustainable transition in the battery supply chain. "Commercial traction for our recycling solutions continues to increase, and the agreement further underscores our potential to build international trading partners as the world shifts to electrification.",” he said.
The tie-up complements Recyclus’ existing deal with Indian battery recycling company LOHUM, where regulatory hurdles have delayed further progress.
Glencore’s wider push into battery recycling
The miner and commodities trader has been increasing its presence in the battery recycling market through a series of partnerships. In October, the company signed an offtake deal to take all mixed hydroxide precipitate produced at Li-Cycle’s Rochester recycling hub in New York. This strengthens Glencore’s ability to secure critical materials from recycled sources. The company has also partnered with multiple recyclers to source black mass and other battery materials as part of its broader strategy to reduce reliance on newly mined resources and integrate recycled materials into its operations.
Competition in the black mass market
The sector is becoming increasingly competitive, with several companies seeking to capitalise on rising demand for recycled battery materials. Canadian firm Li-Cycle specialises in lithium-ion battery recycling and has developed advanced processes to extract critical metals from black mass. German chemical group BASF is investing in battery recycling technology to produce black mass for reuse in new batteries. Belgium-based Umicore recycles metals from black mass and has established partnerships to secure battery waste, while Finnish company Fortum is developing processes to recover metals from black mass.
Rising demand and end users
Demand is increasing as electric vehicle production expands globally. Automakers such as BMW, Ford and Mercedes-Benz are exploring partnerships with recyclers to secure sustainable supplies of critical battery materials. Countries reliant on imported minerals are also prioritising domestic recycling capabilities, with black mass offering a sustainable solution for securing essential metals while reducing environmental impacts associated with traditional mining.
The agreement between Technology Minerals and Glencore reflects the growing importance of black mass recycling in supporting the shift to electrification. As demand for sustainable energy solutions rises, partnerships such as this are expected to drive further developments in the sector.