Raw Materials  The Battle Over Black Mass

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Wuxi InfiMotion Technology Co., Ltd.

Black mass is a valuable raw material for new batteries. China has just cleared the way for the import of black mass, while Europe is imposing export bans.

A new rivalry has broken out between China and Europe - over black mass. This inconspicuous black powder, which is obtained from crushed old batteries, is rich in nickel, cobalt and lithium. This makes it a valuable raw material for new rechargeable batteries. In the industry, black mass has long been regarded as a "gold mine", and the race for this resource is correspondingly fierce.

China has just opened its doors wide to imports of black mass. A guideline announced in June by six ministries, which has been in effect since August 1, permits the import of the material as long as it meets certain quality requirements. Just a few years ago, the import of such battery waste was strictly prohibited. At that time, it was not seen as a valuable resource from recycling for the energy transition, but rather as a type of hazardous waste.

For Chinese automotive and battery manufacturers, the new guideline is a highly welcome step. Finally, they can "bring valuable battery raw materials back home from abroad," as one industry insider put it. Back, because most batteries and electric vehicles on this planet are now produced in China. What remains as waste after the end of battery life is now warmly welcomed back in China. They are willing to pay good prices for it.

Opposing Course in Europe

At the same time, Europe is taking an opposing course. On March 5, 2025, one day after the draft of the Chinese regulation, the EU Commission in Brussels decided to officially classify black mass as hazardous waste. With the corresponding amendment to the European Waste Catalogue, the shredded battery materials are now subject to strict export bans: exports from the EU to non-OECD countries like China are prohibited.

In effect, Brussels has closed the door on selling used batteries or black mass to China. It claims to want to prevent strategic raw materials from leaving Europe. After all, black mass contains exactly those critical metals for electromobility that are meant to be retained in a European "circular economy," which EU officials like to talk about.

Prohibiting and Regulating Instead of Promoting

Here, "talking" is an important keyword; the EU has so far failed to establish its own recycling capacities for black mass. Brussels is better at prohibiting and regulating all kinds of activities than at promoting new industries. However, in the future, Europe also aims to increasingly utilize black mass!

The opposing policies clearly reflect the different priorities at this point in time. China has recognized the economic value of black mass. The recycled powder, which contains valuable metals like nickel, cobalt, and lithium, is regarded as a precious resource for battery cell production. By recovering these materials, Beijing aims to reduce dependence on expensive primary raw materials and further lower the production costs of its automotive and battery industry. Some estimates suggest a reduction in production costs of battery materials by up to 60 percent compared to raw materials from the extraction of fresh ores.

By opening up, Beijing secures strategic raw materials and cost advantages. In contrast, EU bureaucracy emphasizes environmental and disposal aspects. While Brussels claims to want to retain and recycle battery materials in its own market to build a local circular economy, everything else, including the profitability of OEMs and battery manufacturers, is at best considered an "afterthought."

New Barriers for European Companies

The usual stringent regulations from Brussels are creating new barriers for European companies, which can no longer simply hand over their used batteries to Asian recyclers. It also intensifies the global competition for black mass, in which European OEMs must now participate.

The black battery powder has long become a subject of global competition. China holds approximately 85 percent of the world's refining capacities for black mass (estimated at 2.5 million tons per year). However, due to a lack of supply, many of the Chinese facilities have been underutilized. Estimates indicate that 70 to 80 percent of the black mass recycling capacities in the People's Republic are underutilized. Consequently, Beijing is more determined than ever to secure sufficient material to keep its factories running at capacity.

Few Processing Capacities in Europe

Europe, on the other hand, is still at the very beginning of utilizing black mass. Beyond a few pilot projects, there are currently hardly any significant processing capacities for the material (approximately 28,000 tons per year). The EU export ban is expected to drive prices higher, increasing the pressure on European battery manufacturers and users. They will have to pay more for recycled raw materials or rely on inefficient local solutions, while Chinese competitors can further reduce their costs thanks to reclaimed materials.

Some Chinese companies are currently exploring ways, such as investing in recycling projects in Europe, to access used batteries in Europe despite EU regulations. However, they can source globally, and the largest recycling market in the world is currently emerging in China.

Alternative Supply Chains in Southeast Asia

The new rivalry for black mass has additional consequences. Since the summer, prices for battery raw materials like lithium carbonate have been noticeably rising again. This is an indication of the scarcity of these materials and the growing pressure to utilize recycled sources. At the same time, alternative supply chains are emerging. Southeast Asia is becoming a hub for routing black mass to China through indirect means. In countries like Indonesia, low-quality black mass is pre-processed and refined to meet China's import criteria. Traders in the region have already stockpiled tons of material to sell profitably once the market opens in China.

It is clear that the battle for black mass is entering a new phase. This is likely to change the global supply chains for battery raw materials and will influence who leads in electromobility in the future.