China reduces import tariffs for recycled black mass

China’s government lowered its import tariffs on black mass, amongst a broad suite of other goods, as part of its “2026 Tariff Adjustment Plan”. As of 1 January 2026, import tariffs on black mass have been cut to 3%, from 6.5%, representing a significant drop in the costs of importing the material into the country.

China had an excess black mass refining capacity of 1.5 million tonnes in 2025 and this is set to grow to 5.3 million tonnes by 2030. The tariff reduction could increase the availability of black mass to China’s refiners, though potentially at the expense of those in Europe and North America.

“The revised import tariffs highlight China’s need to gain access to more black mass feedstock to fuel its world-leading recycling infrastructure,” said Beatrice Browning, Benchmark’s battery recycling technology lead. “This will enable China to maintain its control over global critical mineral supply and enhance recycler profit margins.”

Where does China get black mass from?

The move follows the Chinese government’s decision to legalise the importation of black mass in August 2025. Although black mass is now legally entering the country as a result of this change, clearance at customs is scrupulous, typically lasting between 5-10 days. This is due to the strict content requirements, especially for water-soluble fluoride and heavy metals, which have meant that a large portion of batches have been rejected.

Due to the stringent requirements set out in Chinese legislation, some Chinese buyers are using subsidiaries and third parties to procure overseas material to avoid regulatory scrutiny. As of now, most players are carrying out limited overseas procurement as they ‘test the water’ with smaller volume transactions of high-quality production scrap feed black mass.

Most of China’s black mass imports originate from ASEAN (Association of Southeast Asian Nations) countries, which already benefit from zero-tariff treatment. As a result, the impact of this tariff amendment on those nations is likely to be negligible. Trade with Europe (for product status material) and North America will be more significantly affected.

In these affected regions, Benchmark expects that the changes will extend the purchasing power advantage of Chinese buyers over their competition, enabling them to seize more of the feedstock supply available globally and raise domestic utilisation rates.

Payables for NCM black mass from EOL feedstock currently sit at 80–82% on an EXW North America basis and 73–83% on an EXW Europe basis, depending on whether material receives product or hazardous waste status.

“It is probable that the cut in import tariffs will facilitate more material entering China as domestic buyers outcompete those overseas, however, we foresee rising lithium chemical prices will have a more significant effect on payables in the near term,” said Frederick Bloomfield, a senior black mass pricing analyst at Benchmark.