Frederick Bloomfield

On 30 July the Trump administration issued a memorandum to secure the supply of recoverable Critical Minerals and Materials (CMMs) by controlling exports under Section 101 of the Defense Production Act. Included within these controls are black mass and used batteries. Following this the Department of Commerce’s Bureau of Industry and Security (BIS) issued a temporary rule to restrict exports of black mass and tungsten scrap without a license on 4 August, which it is now seeking feedback on. According to the summary “U.S. persons engaged in the sale of black mass and tungsten waste and scrap must allocate 100 percent of monthly sales to U.S. persons, unless an adjustment or exception is obtained in advance from BIS.” After publication on 6 August, there are 21 days permitted for feedback before official implementation on 27 August with an expiration date of 17 September 2027. “A ban on the export of black mass should redirect feedstock towards US recyclers,” said Frederick Bloomfield, a senior black mass pricing analyst at Benchmark. “The key question is whether the policy will accelerate the buildout of US black mass refining capacity and mitigate critical mineral leakage, or whether these rules can be circumvented.”

Black mass payables were less volatile in Q2 2026 compared to Q1, as trading levels for the recycled intermediate responded to cooling battery metal markets, wavering demand and continued regional divergence. The largest movements were recorded in the seaborne Asia market, with CIF Asia NCM black mass from EOL and production scrap hitting all-time highs in May of 104.0% and 137.5%, respectively, as reported by Benchmark’s Black Mass Price Assessment. “By the end of the quarter, black mass payables had eased from May’s lofty heights,” Frederick Bloomfield, a senior price analyst at Benchmark, said. “The quarter saw a clear shift from broad strength towards a more cautious and regionally fragmented pricing environment as lithium prices began to show weakness.”

The nickel market experienced a mixed second quarter in 2026, as supply-side constraints supported intermediate prices while weaker LME nickel prices and cautious downstream demand limited further gains. Benchmark’s EXW China nickel sulphate price rose by 4.8% between April and June, from RMBT 31,250/tonne ($4,594) to RMB 32,750/tonne ($4,847). Mixed  hydroxide precipitate (MHP) prices increased by 7.8% over the same period, with aggregate prices reaching $9,045/tonne. “Overall, Q2 was characterised by tight upstream supply and cost pressure stemming from elevated sulphur costs and policy uncertainty, rather than a meaningful recovery in nickel demand,” said Frederick Bloomfield, a senior price analyst Benchmark. “Prices ended the quarter supported by heightened raw material costs and supply risks, but face a more bearish outlook for Q3 where supply constraints are expected to be at least partially alleviated.”

This week, NCM feedstock black mass payables across ex-China Asia, North America and Europe reached all-time highs, continuing a trend that has been developing since the beginning of 2026, especially for high-grade batches sourced from production scrap, boosted by several bullish factors. Other black mass grades have also been recorded at very high levels, with lithium cobalt oxide (LCO) black mass payables now dipping following a recent cooling of cobalt sentiment.

In April 2026, Ascend Elements filed for bankruptcy, citing “insurmountable” financial challenges despite having raised over USD 1.1 billion. It will continue operations through the Chapter 11 restructuring process. The company faced headwinds from a slowdown in the US electric vehicle market, alongside the withdrawal of the unspent portion of its $316 million grant the US Department of Energy (DOE) for its Kentucky facility. This marks the second bankruptcy at a major US battery recycler, following Li-Cycle’s collapse in May 2025, underscoring increasing financial stress across the sector.

The nickel market experienced a relatively volatile first quarter in 2026 as metal prices rallied on the back of supply-side concerns. Prices for Benchmark’s EXW China nickel sulphate price grade rose by 18.6% throughout the quarter, responding to supply concerns from Indonesia and a broader battery metal price rally.

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. […]