Black Mass Recycling Market

Market Definition

Black mass recycling involves recovering valuable metals like lithium, cobalt, and nickel from recycling lithium-ion batteries. The extracted black mass is processed using technologies such as hydrometallurgy (chemical leaching), pyrometallurgy (high-temperature smelting), or other methods to extract usable materials.

The market report examines critical driving factors, industry trends, regional developments, and regulatory frameworks impacting market growth through the projection period.

Black Mass Recycling Market Overview

The global black mass recycling market size was valued at USD 14.06 billion in 2023, which is estimated to be USD 16.11 billion in 2024 and reach USD 46.48 billion by 2031, growing at a CAGR of 16.34% from 2024 to 2031.

Advancements in recycling infrastructure, such as the expansion of processing facilities and enhanced capacities, play a crucial role in meeting the growing demand for black mass. This development enables higher throughput, improving the overall efficiency of the recycling process.

Major companies operating in the black mass recycling industry are Glencore, Li-Cycle Corp., RecycLiCo Battery Materials Inc., Umicore, Redwood Materials Inc., Tenova S.p.A., Metso, Lithion Technologies, BASF SE, Akkuser Oy, Duesenfeld GmbH, Aqua Metals, Inc., Fortum, Stena Metall AB, and LOHUM.

The market is registering rapid expansion, driven by the rising volume of end-of-life Electric Vehicle (EV) batteries. Several EVs will approach retirement over the next decade, boosting the need for a steady and scalable supply of used lithium-ion batteries.

This creates a robust feedstock for black mass production, rich in critical metals like lithium, cobalt, and nickel. With growing regulatory support and demand for sustainable materials, recyclers are well-positioned to capitalize on this momentum and scale operations globally.

• In February 2024, Fortum Battery Recycling and Hydrovolt partnered to process black mass from EV batteries across the Nordics. This collaboration strengthens the regional recycling value chain, supports clean electrification goals, and boosts opportunities in the growing market through circular and sustainable practices.

Key Highlights:

1. The global black mass recycling market size was valued at USD 14.06 billion in 2023.
2. The market is projected to grow at a CAGR of 16.34% from 2024 to 2031.
3. North America held a market share of 36.33% in 2023, with a valuation of USD 5.11 billion.
4. The automotive batteries segment garnered USD 6.37 billion in revenue in 2023.
5. The hydrometallurgy segment is expected to reach USD 23.57 billion by 2031.
6. The automotive segment is anticipated to register the fastest CAGR of 17.13% during the forecast period.
7. The market in Europe is anticipated to grow at a CAGR of 16.68% during the forecast period.

Market Driver

Advancements in Recycling Infrastructure

Advancements in recycling infrastructure have significantly boosted the efficiency and capacity of black mass production. New processing plants have been developed and existing ones are being upgraded. Thus, recyclers can handle larger volumes of used batteries, resulting in higher output of valuable black mass.

This increase in processing capacity not only meets the rising demand but also improves the speed and cost-effectiveness of recycling. As technologies evolve, the recycling process becomes more streamlined, fostering growth in the black mass market and reinforcing the circular economy.

• In September 2023, Stena Recycling successfully produced its first black mass at its new facility in Halmstad, Sweden. This marks a significant milestone in the shift toward sustainable battery production, with plans to recycle 10,000 tons of batteries annually, supporting the circular economy.

Market Challenge

High Initial Investment

High initial investment remains a significant challenge in the black mass recycling market, as establishing and scaling advanced recycling facilities requires substantial upfront capital. This can deter smaller players from entering the market, limiting competition and innovation.

A potential solution lies in government incentives, grants, and partnerships with larger corporations to lower financial barriers. Additionally, collaboration through joint ventures or technology-sharing agreements can enable smaller players to access cutting-edge recycling technologies without bearing the full financial burden.

Market Trend

Supply Chain Integration

A significant trend in the market is the integration of recycling processes with battery production. Companies are increasingly focusing on creating closed-loop systems where recycled materials are directly fed back into the production of new batteries.

This integration enhances the availability of critical materials like lithium, cobalt, and nickel, reducing reliance on traditional mining methods. It not only supports a more sustainable battery supply chain but also ensures a steady, cost-effective supply of essential raw materials for the growing EV industry.

• In April 2025, Aqua Metals successfully completed bench-scale testing for recycling lithium iron phosphate (LFP) battery materials. This advancement integrates LFP recycling into existing facilities, doubling lithium carbonate output. Aqua Metals positions itself as a leader in adapting technology to meet the growing demand for domestic, sustainable lithium production.

Black Mass Recycling Market Report Snapshot

Segmentation	Details
By Battery Source	Automotive Batteries, Consumer Electronics Batteries, Industrial Batteries
By Technology	Hydrometallurgy, Pyrometallurgy, Others
By Application	Automotive, Consumer Electronics, Energy Storage, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Battery Source (Automotive Batteries, Consumer Electronics Batteries, Industrial Batteries): The automotive batteries segment earned USD 6.37 billion in 2023, due to the increasing demand for EVs, leading to more battery recycling and higher black mass production.
• By Technology (Hydrometallurgy, Pyrometallurgy, Others): The hydrometallurgy segment held 48.44% share of the market in 2023, due to its efficient and sustainable extraction of critical metals like lithium, cobalt, and nickel from black mass.
• By Application (Automotive, Consumer Electronics, Energy Storage, Others): The automotive segment is projected to reach USD 22.84 billion by 2031, owing to the rapid growth of EV production and the increasing demand for battery recycling technologies to support sustainability.

Black Mass Recycling Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific accounted for a market share of around 36.33% in 2023, with a valuation of USD 5.11 billion. Asia Pacific remains the dominating region for the black mass recycling market, driven by its massive production of EVs and high demand for battery-grade materials.

The region benefits from established infrastructure, technological advancements, and large-scale manufacturing capabilities. Asia Pacific, led by key countries like China, is poised to maintain its leadership in both battery production and recycling innovations.

According to the International Energy Agency (IEA), China accounted for nearly 60% of global electric car registrations in 2023, with 8.1 million new registrations, fueling the demand for battery materials and boosting the market. Additionally, the rapid adoption of EVs and government-backed sustainability initiatives further fuel the region’s dominance in the global market.

The black mass recycling industry in Europe is poised for significant growth at a robust CAGR of 16.68% over the forecast period. Europe is rapidly emerging as a key region for the black mass recycling industry, driven by its increasing demand for sustainable energy solutions and EV production.

The region's strong commitment to a circular economy and decarbonization initiatives is accelerating the development of advanced recycling technologies. This shift is essential to secure a domestic supply of critical materials like lithium, nickel, and cobalt, reducing dependence on traditional mining and enhancing the region's competitiveness in the global battery manufacturing supply chain.

• In May 2023, Glencore and Li-Cycle announced a joint study to develop a European recycling hub in Portovesme, Italy. This hub will process 50,000-70,000 tonnes of black mass annually, aiming to become Europe’s largest producer of recycled battery-grade lithium, nickel, and cobalt.

Regulatory Frameworks

• In India, the Ministry of Environment, Forest and Climate Change introduced the Battery Waste Management Amendment Rules, 2025, outlining new regulations for marking and reporting requirements for battery producers to ensure proper recycling and disposal of battery waste.
• In the U.S., the Resource Conservation and Recovery Act (RCRA) empowers the Environmental Protection Agency (EPA) to regulate hazardous waste management, covering its generation, transportation, treatment, storage, and disposal processes.
• In the EU, the Circular Economy Action Plan (CEAP), adopted in March 2020, supports the European Green Deal by focusing on sustainable product design, circular processes, waste prevention, and resource retention within the economy.

Competitive Landscape:

Companies in the black mass recycling market are focusing on advancing sustainable technologies to recover valuable materials like lithium, nickel, and cobalt from used batteries.

They are adopting innovative processes such as deep discharging, low-temperature drying, and hydrometallurgical techniques. These efforts aim to improve material recovery rates, reduce CO2 emissions, and contribute to the circular economy by promoting battery reuse and reducing waste.

• In February 2025, ANDRITZ signed a cooperation agreement with Duesenfeld to advance sustainable battery recycling. The partnership will enhance lithium-ion battery recycling efficiency by upgrading Duesenfeld's pilot plant and utilizing ANDRITZ's advanced shredders and dryers, promoting a circular economy with lower CO2 emissions.

List of Key Companies in Black Mass Recycling Market:

• Glencore
• Li-Cycle Corp.
• RecycLiCo Battery Materials Inc.
• Umicore
• Redwood Materials Inc.
• Tenova S.p.A.
• Metso
• Lithion Technologies
• BASF SE
• Akkuser Oy
• Duesenfeld GmbH
• Aqua Metals, Inc.
• Fortum
• Stena Metall AB
• LOHUM..

Recent Developments (Partnerships)

• In July 2024, RecycLiCo commenced production at its Taiwan facility as part of a joint venture with Zenith Chemical. It started processing off-spec battery materials to create black powder. This facility is the first step in a larger recycling operation, with future plans to expand into a Stage 2 plant for processing black mass and producing high-value battery materials.
• In January 2024, BASF and Stena Recycling announced a partnership to develop a battery recycling value chain for EV batteries in Europe. Stena Recycling will collect, assess, and pre-treat end-of-life lithium-ion batteries in Sweden to produce black mass. BASF will further refine the black mass in its prototype refinery in Germany, recovering valuable metals like lithium, nickel, and cobalt. This collaboration aims to improve the recycling process and support a circular economy for the European EV battery market.
• In September 2023, Li-Cycle and Glencore initiated a two-phase approach for the Portovesme Hub project in Sardinia, Italy, to accelerate lithium carbonate production. Phase 1 aims to process 11,000 tonnes of black mass annually, while Phase 2 plans to increase processing capacity to 50,000–70,000 tons , advancing European battery recycling efforts.