Nth Cycle, Trafigura Strike $1.1 Billion Agreement for Recycled Battery Materials

U.S.-based refining technology firm Nth Cycle has entered a 10-year, $1.1 billion offtake agreement with commodities trader Trafigura, securing long-term supplies of recycled battery materials, according to a company announcement. The deal highlights growing efforts to establish reliable, non-primary sources of nickel and lithium amid accelerating demand from the energy transition.

Under the agreement, Trafigura will purchase 2,000 tonnes of contained nickel in mixed hydroxide precipitate (MHP) and 1,500 tonnes of lithium carbonate. These materials will be produced from approximately 12,000 tonnes of black mass, a recycled feedstock derived from end-of-life lithium-ion batteries. The transaction represents a significant multi-metal supply arrangement linking recycled inputs to refining capacity.

To support the contract, Nth Cycle plans to expand beyond its existing operations in Ohio, with new facilities under consideration in South Carolina and the Netherlands. Site selection is expected this year, with operations targeted to begin in 2028. The expansion reflects rising demand for localized refining capacity in both the United States and Europe.

According to reports, Nth Cycle’s proprietary “Oyster” system will be deployed at the new sites. The modular electro-extraction technology is designed to recover critical metals from black mass at smaller scales compared to traditional refineries. By enabling distributed processing, the system offers an alternative to centralized facilities that typically require large capital investments and extended development timelines.

Black mass contains valuable metals such as nickel, lithium, cobalt, and manganese, but requires further refinement to meet battery-grade specifications. Nth Cycle’s process upgrades these materials into usable inputs for battery manufacturing, supporting circular supply chains for electric vehicles and energy storage systems.

The planned U.S. project, known as Project SHIELD, is expected to be located in South Carolina, leveraging access to port infrastructure and a growing industrial base. The facility is intended to serve sectors including energy storage, transportation, and data infrastructure, all of which depend on stable supplies of battery materials.

For Trafigura, the agreement strengthens its position in the battery metals market by securing access to recycled sources of key materials. The company is expected to utilize its global logistics network to distribute the refined products to downstream customers.

As demand for battery materials continues to rise, recycled feedstocks are expected to play an increasingly important role in supplementing primary supply, particularly as governments in the U.S. and Europe push to localize critical mineral processing.

Source: Nth Cycle

SUNSHINE Spotlight: The Trafigura–Nth Cycle agreement highlights the accelerating shift toward securing recycled nickel and lithium as strategic battery materials in global supply chains.