Nth Cycle Trafigura Battery Materials Deal Signals Scale-Up in Black Mass Refining

Nth Cycle

Nth Cycle Trafigura battery materials deal marks a significant step for recycled battery metals supply as the US critical metals refiner prepares to expand its refining footprint. Nth Cycle has signed a 10-year binding offtake agreement to supply Trafigura with battery materials valued at $1.1bn.

The agreement covers 2,000 metric tonnes of contained nickel in mixed hydroxide precipitate and 1,500 tonnes of lithium carbonate. These materials will be refined from 12,000 tonnes of black mass, reinforcing the growing commercial role of recycled feedstock in the battery supply chain.

The Nth Cycle Trafigura battery materials deal also gives Trafigura long-term exposure to recycled nickel and lithium units. That matters as battery manufacturers, automakers, and trading houses seek lower-carbon and more traceable alternatives to mined raw materials.

Modular Refining Model Targets Faster Battery Materials Capacity

Nth Cycle plans to establish new operations in South Carolina and the Netherlands, with production scheduled to begin in 2028. The dual-location strategy gives the company access to both North American and European battery supply chains.

The company’s modular refinery system is designed to reduce build time and capital intensity. This model could become important because conventional refining projects often face long development timelines, high upfront costs, and permitting delays.

Black mass refining is becoming a strategic bridge between battery recycling and primary raw material supply. By converting battery waste into mixed hydroxide precipitate and lithium carbonate, refiners can return critical metals into the battery value chain with less dependence on new mining projects.

Trafigura Offtake Strengthens Commercial Validation

The Nth Cycle Trafigura battery materials deal provides commercial validation for Nth Cycle’s refining technology and expansion plan. A 10-year offtake agreement with a major global trading house can support financing, customer confidence, and project execution.

Nth Cycle has also received a €7.5mn grant from the Netherlands’ National Growth Fund under the Critical Raw Materials Lion initiative. This support highlights Europe’s policy focus on domestic and regional critical raw materials capacity.

The agreement reflects a broader shift in battery materials markets. Recycled nickel and lithium are moving from pilot-scale sustainability claims toward bankable supply contracts. As a result, black mass is increasingly becoming an industrial feedstock rather than a waste stream.

The Metalnomist Commentary

This deal shows that battery recycling is entering a more serious commercial phase. The key challenge for Nth Cycle will be execution, because long-term offtake value only matters if modular refining can deliver consistent volume, quality, and cost performance.

NATO Prioritizes Critical Metals for Strengthening Defense Supply Chains

NATO

NATO has unveiled a list of 12 critical raw materials deemed essential for the production of advanced defense systems and military equipment, underscoring the need for secure and resilient supply chains in the face of growing geopolitical tensions. This initiative is part of NATO’s broader strategy to safeguard its technological edge and ensure the operational readiness of its member nations.

Key Critical Metals for Defense Applications

The metals identified by NATO include aluminium, beryllium, cobalt, gallium, germanium, graphite, lithium, manganese, platinum, rare earth elements, titanium, and tungsten. These materials play a pivotal role in the development of military aircraft, missiles, tanks, and submarines, among other defense technologies. For example:

• Aluminium: Used in military aircraft and missiles for its lightweight and high-strength properties.

• Graphite: Integral to the production of tanks and corvettes, known for its thermal stability and strength.

• Cobalt: Essential for creating superalloys used in jet engines and submarines to withstand extreme temperatures.

NATO's secretary-general Mark Rutte emphasized the need to ramp up defense production and spending during a recent address in Brussels, calling it a “top priority” amid escalating security challenges.

Building Resilient Supply Chains: NATO's Strategic Focus

NATO's roadmap for securing critical materials encompasses five strategic lines of action, including:

1. Strategic Stockpiling: Ensuring reserves of key materials to mitigate supply disruptions.
2. Recycling: Harnessing recycled materials to reduce dependency on new mining operations.
3. Substitution: Researching alternative materials to replace scarce or geopolitically sensitive metals.

This comprehensive approach reflects NATO’s commitment to reducing vulnerabilities in defense-critical supply chains. Geopolitical tensions, particularly surrounding rare earth elements and other critical metals, have heightened the complexity of defense manufacturing. For instance, trade disputes involving key suppliers like China and Russia have underscored the need for diversified sourcing and secure logistics.

Geopolitical Implications and Defense Strategy

The move aligns with broader global concerns about critical materials. Several NATO member states rely heavily on imports for materials like rare earth elements, predominantly sourced from China, which controls over 60% of global rare earth production. NATO’s strategy highlights the importance of mitigating this dependency through alliances, domestic production, and innovative technologies.

The roadmap also acknowledges the role of emerging economies in supplying materials like lithium and cobalt, critical for both defense applications and the burgeoning electric vehicle (EV) market. Collaborations with these nations may be essential in ensuring a steady supply of critical metals.

Solarcycle Georgia Recycling Plant Strengthens the US Solar Materials Loop

Solarcycle

The Solarcycle Georgia recycling plant marks an important step in building a domestic solar materials loop. Solarcycle has started operations at its new facility in Cedartown, Georgia. The site uses upgraded technology that more than doubles throughput versus earlier systems. As a result, the Solarcycle Georgia recycling plant could become a meaningful part of the US clean energy supply chain.

This project matters because solar waste is becoming a larger industrial issue. More end-of-life panels now need recovery rather than disposal. Solarcycle said the process diverts all material from landfill and recovers about 96pc of panel value. Therefore, the Solarcycle Georgia recycling plant is not just a waste solution. It is also a materials recovery platform.

The recovered materials also carry real industrial value. Silver, copper, aluminum, and glass are all embedded in used solar panels. These inputs matter for manufacturing economics and supply resilience. Consequently, solar panel recycling is becoming more relevant to both sustainability and domestic sourcing.

Solar Panel Recycling Is Moving Toward Industrial Scale

Solar panel recycling is shifting from niche activity toward industrial infrastructure. The Cedartown facility is already processing thousands of panels each week. Solarcycle expects that figure to rise to 1mn panels annually by the end of 2026. As a result, the company is building capacity for scale rather than demonstration.

Full capacity makes the project even more significant. The plant can process up to 5 GW per year of solar panels. That level of throughput places the facility among the more serious recycling assets in the US solar chain. Therefore, the Solarcycle Georgia recycling plant could influence how the market thinks about end-of-life solar economics.

The technology angle also matters. Higher throughput and full landfill diversion improve the commercial case for recycling. Better material recovery can support stronger margins and more stable downstream reuse. Meanwhile, it gives developers and manufacturers a clearer pathway for circularity.

Recycled Solar Glass Could Deepen US Solar Materials Capacity

Recycled solar glass is the next major part of Solarcycle’s strategy. The recycling facility sits next to the company’s planned solar glass manufacturing plant. That plant is expected to break ground in mid-2026 and begin producing glass in 2028. Consequently, Solarcycle is linking recycling directly to new manufacturing capacity.

This integrated model matters for the broader US solar sector. Domestic manufacturing has become more important as buyers seek local supply and policy support favors US production. Solarcycle said it has already secured customer commitments for more than 80pc of the future glass plant’s planned 5 GW capacity. Therefore, demand for recycled and US-made solar materials appears to be strengthening.

The business model also shows a wider industrial trend. Recycling is no longer just about compliance or waste reduction. It is becoming a feedstock strategy for new manufacturing. As a result, the Solarcycle Georgia recycling plant may prove more important as the front end of a circular materials chain than as a stand-alone recycling site.

The Metalnomist Commentary

This project stands out because it connects recycling scale with future manufacturing capacity. Solarcycle is not simply collecting old panels. It is building a domestic solar materials loop that could matter more as US clean energy deployment accelerates.

BMW and SK tes to Expand Battery Recycling in North America

SK, Battery Recycling

Strategic Partnership Targets Key Battery Materials

BMW Group and SK tes will expand their battery recycling partnership to North America in 2026. This move follows their successful European collaboration launched in November 2024. The expansion will cover the US, Canada, and Mexico. The partnership focuses on recovering crucial materials. These materials include cobalt, nickel, and lithium. Hydrometallurgical processes will extract these elements from used batteries. 

The recovered materials will support BMW's GEN 6 drive train production. BMW aims to enhance its sustainable battery supply chain. This initiative strengthens BMW's commitment to circular economy principles. The company previously partnered with Zhejiang Huayou Recycling Technology in 2022. This earlier partnership focused on recycling high-voltage batteries from BMW's electric vehicles in China. SK tes brings significant expertise in battery recycling technology. The partnership ensures responsible end-of-life management for EV batteries. This effort contributes to a more sustainable automotive industry.

Hydrometallurgy and the GEN 6 Drive Train

The partnership utilizes hydrometallurgical processes. This method efficiently recovers valuable battery materials. Recovered materials will be used in the GEN 6 drive train. This technology represents BMW's next generation of electric vehicle power systems. The focus on recovering cobalt, nickel, and lithium is crucial. 

These materials are essential for high-performance batteries. The recycling process reduces the need for new raw material extraction. This approach minimizes the environmental impact. The GEN 6 drive train will feature advanced battery technology. This technology will benefit from the recycled materials.

Neo Rare Earth Recycling Deal Strengthens Circular Magnet Supply Chain

Neo performance materials

Neo rare earth recycling plans with Cyclic Materials will support a more circular supply chain for rare earth magnets in Europe and North America. The agreement allows Neo Performance Materials to feed recovered rare earth elements into its alloy and magnet manufacturing operations.

Neo rare earth recycling also aligns with the EU Critical Raw Materials Act, which aims to increase rare earth processing and recycling capacity. This is important because Europe needs more secure access to magnet materials used in EVs, wind turbines, robotics, automation, defence systems, and advanced electronics.

Cyclic Materials recovers rare earth elements from magnet production scrap and end-of-life magnet-bearing materials. Under the agreement, Neo will supply magnet production scrap from its European operations to Cyclic, which will recycle the material into mixed rare earth oxide.

Recycled Rare Earth Oxides Support Neo’s Magnet Platform

Neo will receive mixed rare earth oxides and related products from Cyclic. These materials will come from end-of-life magnets and third-party magnet manufacturing scrap, creating a secondary feedstock stream for Neo’s downstream operations.

This structure matters because rare earth magnet supply chains remain highly exposed to China-dominated processing and refining capacity. Recycling does not eliminate the need for primary rare earth mining, but it can improve resilience, reduce waste, and support traceable supply for strategic customers.

Neo operates a 2,000 t/yr magnet production facility in Estonia and plans to expand it to 5,000 t/yr. A reliable recycled feedstock channel could become more valuable as European magnet production scales and customers demand stronger ESG and supply-chain security credentials.

Cyclic Expands North American Rare Earth Recycling Capacity

Cyclic is building a rare earth recycling campus in South Carolina with initial processing capacity of 2,000 t/yr of magnets. The site is expected to produce 600 t/yr of mixed rare earth oxide, with expansion plans to reach 6,000 t/yr of magnet processing and 1,800 t/yr of MREO output.

The company also has an agreement with Vacuumschmelze to recycle production scrap from the German group’s Sumter, South Carolina, magnet facility. This shows that rare earth recycling is moving from pilot concepts toward integrated industrial supply agreements.

The Neo-Cyclic partnership connects European magnet manufacturing, North American recycling capacity, and recycled rare earth oxide supply. That model could become increasingly important as governments push for domestic and allied rare earth value chains outside China.

The Metalnomist Commentary

Rare earth recycling is becoming a strategic complement to mining and separation, not a side activity. The key advantage will go to companies that can connect scrap collection, oxide recovery, alloying, and magnet production into one qualified supply chain.

Jaguar Land Rover Backs Cyclic Materials in Rare Earth Recycling Expansion

Cyclic Materials

Cyclic Materials Secures Investment to Boost Rare Earth Processing in US and Europe

Canadian rare earth recycling start-up Cyclic Materials has secured a $2 million investment from InMotion Ventures, the investment arm of Jaguar Land Rover. This funding will support the launch of the company's first commercial rare earth element (REE) processing facilities in the United States and Europe. The investment extends Cyclic Materials’ Series B round to $55 million.

Expanding Rare Earth Recycling to Secure Supply Chains

Cyclic Materials is advancing its MagCycle and REEPure technologies to extract REEs from end-of-life electric vehicle (EV) motors, wind turbines, MRI machines, and data center waste. With less than 1% of REEs currently being recycled, increasing domestic processing capacity is crucial to reducing reliance on China, which dominates global REE processing. China’s export restrictions on rare earth technologies have heightened concerns about supply chain resilience.

Growing Investment in Critical Minerals Recycling

In September 2023, Cyclic Materials raised $53 million from key investors, including Microsoft, Hitachi, BMW i Ventures, ArcTern, and Fifth Wall. With InMotion Ventures' latest contribution, the company has raised over $85 million in equity financing. This funding will accelerate Cyclic Materials' North American and European expansion, refine its recycling processes, and enhance production capabilities.

Jaguar Land Rover’s investment aligns with its 2030 electrification strategy, which involves securing critical raw materials for battery repair, re-use, and recycling. The company is strengthening its upstream supply chain to support the transition to luxury electric vehicles.

Cyclic Materials has also partnered with Solvay, Vattenfall, Synetiq, and Vacuumschmelze to advance rare earth magnet recycling. The company operates Hub 100, a commercial demonstration facility in Kingston, Ontario, with an 8,000 t/yr MagCycle capacity and a 100 t/yr REEPure hydrometallurgical facility producing recycled mixed rare earth oxides (rMREO), nickel, and cobalt hydroxides.

Cyclic Materials and Glencore Forge Partnership for Recycled Copper

Cyclic Materials

In a move that underscores the growing emphasis on sustainability in the metals industry, Cyclic Materials and Glencore have entered into a strategic partnership to enhance the circular supply chain for copper in North America. Announced today, this collaboration sees Cyclic Materials, a prominent metals recycler, supplying recycled copper sourced from end-of-life electric motors to Glencore, a major player in global mining and trading.

Advancing Circular Economy in Critical Minerals

The copper will be initially processed at Cyclic's specialized "spoke" plant located in Ontario, Canada. This facility is equipped to handle the breakdown of electric motors, extracting valuable copper which is then sent to Glencore's Horne smelting facility in Quebec. Here, the scrap copper is transformed into copper anodes before undergoing further refinement into copper cathodes at Glencore’s Canadian Copper Refinery near Montreal.

Strategic Expansion and Future Plans

This partnership marks a significant step for Cyclic Materials as it seeks to expand its operations to commercial scale across North America, as well as in the US and Europe. The deal also complements Cyclic’s recent initiatives, including the production of recycled mixed rare earth oxide (rMREO) at its new Hub100 facility in Ontario. Earlier this year, Cyclic also entered into a critical supply agreement with Belgium's chemical group Solvay and secured additional feedstock agreements with Synetiq in England and E-VAC Magnetics in the US, both of which will supply rare earth elements crucial for Cyclic's operations.

While the specifics of the production volumes and financial terms remain undisclosed, the multiyear offtake agreement between Cyclic and Glencore is set to significantly impact the supply chain dynamics for recycled copper and potentially influence broader market trends.

Ascend, Trafigura lithium carbonate offtake deal signals growing recycled supply pipeline

Ascend Elements

Ascend, Trafigura lithium carbonate offtake deal expands the commercial pathway for recycled battery materials. Ascend Elements signed a five-year offtake agreement with Trafigura to supply lithium carbonate. Ascend, Trafigura lithium carbonate offtake deal covers 15,000 metric tonnes delivered between 2027 and 2031. Therefore, the agreement anchors a multi-year recycled lithium stream for downstream buyers.

The companies did not disclose financial terms. However, the contract length and volume provide a clearer demand signal for recycled lithium investments. Meanwhile, producers and traders are looking for stable supply that can meet battery-grade specifications. As a result, contracted recycled lithium can compete more directly with mined and brine-derived material.

Offtake contracts strengthen recycling scale-up in North America and Europe

Ascend, Trafigura lithium carbonate offtake deal supports Ascend’s growth pipeline across two regions. The company is building capacity in North America while expanding its European ambitions. Meanwhile, Ascend partnered in September with GEM to collaborate on lithium-ion battery recycling in Europe. Therefore, the company is positioning for cross-regional feedstock and processing optionality.

Offtake agreements also reduce market risk for new plants. They can improve financing outcomes by showing future revenue visibility. However, execution still depends on scrap availability, logistics, and qualification cycles with cathode customers. As a result, long-term contracts often become a prerequisite for bankable recycling projects.

Battery-grade lithium salts from scrap move closer to mainstream supply chains

Ascend recycles spent batteries and manufacturing scrap to produce precursor cathode active materials and battery-grade lithium salts. This approach can shorten supply chains while reducing exposure to upstream mining disruption. Meanwhile, policymakers and OEMs are pushing for circularity and localized sourcing. Therefore, recycled lithium carbonate can become a strategic procurement tool.

The 2027–2031 delivery window also matters for planning. It aligns with the period when end-of-life battery volumes rise and recycling infrastructure scales. However, quality consistency and recovery efficiency will determine real competitiveness. As a result, Ascend, Trafigura lithium carbonate offtake deal will likely be judged on delivered tonnes and specification compliance, not headline capacity.

The Metalnomist Commentary

Recycled lithium is moving from pilot narrative to contracted supply reality. Meanwhile, traders are stepping in to aggregate and de-risk new flows. Therefore, expect more multi-year offtakes as recycling shifts into a commodity-grade business.

EU end-of-life vehicles regulation sets recycled content targets for cars

Recycled content for cars

The EU end-of-life vehicles regulation will set recycled content targets for cars across the bloc. The deal phases in recycled plastics content in new vehicles over the next decade. Therefore, the EU end-of-life vehicles regulation reshapes how automakers source plastics, steel, and aluminium.

The European Parliament and EU states reached a provisional agreement on the rules. The plan sets 15% recycled plastics in six years. It then rises to 25% in ten years. Meanwhile, 20% of those plastics must come from end-of-life vehicles or reused components.

Recycled steel and aluminium targets move to a feasibility phase

Targets for recycled steel and aluminium will follow later. The European Commission will run feasibility studies first. As a result, the EU end-of-life vehicles regulation creates a staged pathway for metal recycling mandates.

This approach gives industry time to validate scrap availability and quality. However, it still signals future demand for low-carbon secondary aluminium and recycled steel. Therefore, suppliers should prepare for tighter traceability and mass-balance scrutiny.

Producer responsibility and export rules tighten material retention

The agreement expands collection and depollution rules to more vehicle categories. It will cover heavy-duty vehicles, motorcycles, and special purpose vehicles. Meanwhile, the regulation will introduce a cross-border extended producer responsibility scheme three years after entry.

Manufacturers will carry financial and organisational responsibility across the vehicle lifecycle. The rules also aim to distinguish used vehicles from end-of-life vehicles more clearly. Five years after entry, the EU will ban exports of non-roadworthy used vehicles.

The Metalnomist Commentary

This policy pushes the auto supply chain toward circular materials at scale. However, recycled aluminium and steel targets will hinge on scrap sorting and clean-stream capacity. Therefore, early movers in certified recycling and traceable alloys gain leverage.

Cyclic and Solvay Sign Supply Agreement for Recycled Rare Earth Oxide

Canadian recycler Cyclic Materials has reached an agreement to supply Belgium's Solvay with recycled mixed rare earth oxide (rMREO) starting from late 2024. This development follows an initial agreement made in February 2023, after confirming the compatibility of Cyclic's product with Solvay's separation process.

The recycled oxide will be transported from Cyclic's new Hub100 facility in Ontario, Canada, to Solvay's plant located in La Rochelle, France.

"This agreement is in line with our sustainable sourcing strategy to deliver magnet grades of NdPr (neodymium-praseodymium) and Nd (neodymium) oxides to our customers by early 2025," stated An Nuyttens, president of Solvay Special Chem. She further noted, "Through this partnership, we are establishing a circular loop to reintegrate recycled MREO back into the magnet supply chain."

Since late 2022, Solvay has been working towards creating a rare earths hub for the permanent magnet value chain in La Rochelle. This initiative aims to enhance Europe's self-sufficiency and provide services to customers in the electric vehicle, wind power, and electronics sectors by 2025.

Founded in 2021, Cyclic Materials is focused on developing technologies to convert end-of-life products into raw materials, with plans to establish facilities in North America, Europe, and Asia to meet regional MREO demand. The company has attracted investments from notable entities, including BMW i Ventures, the capital venture arm of the German automaker. Earlier this year, Cyclic also signed an agreement with German magnet materials manufacturer Vacuumschmelze to recycle rare earth magnets in North America.

China Enhances Recycled Aluminium and Copper Imports to Boost Sustainability

China has taken significant steps to facilitate the importation of recycled aluminium and copper, aiming to bolster supply chains and mitigate carbon emissions from energy-intensive industries. This initiative, outlined in a recent notice by the Ministry of Ecology and Environment (MEE), underscores the country's commitment to environmental sustainability.

The MEE's draft regulations propose a reclassification of recycled aluminium, copper, and their alloys, distinguishing them from other solid waste categories. This reclassification will allow these materials to be imported without the stringent restrictions typically imposed on more ecologically harmful waste.

By promoting the import of recycled metals, China is intensifying its efforts to reduce carbon emissions and foster a greener industrial sector. This initiative mirrors a similar policy introduced by the MEE in 2021, which targeted the import of recycled iron and steel raw materials.

These progressive Chinese import regulations stand in stark contrast to the European Union's recent policies on waste material exports. The EU's regulations do not differentiate between waste and recyclable materials, posing challenges for the metal recycling industry.

The MEE is actively seeking market feedback on these proposed changes before finalizing the draft regulations, signaling an inclusive approach to policy formulation.

TSR Acquires German Plant to Expand Copper Alloys Production

TSR Recycling

TSR Recycling, a leading European metals recycler, has successfully acquired Siegfried Jost GmbH & Co NE Metallhandel and its electric melting plant in Menden, Germany. The acquisition strengthens TSR’s position in the copper alloys market by adding advanced production capabilities, particularly in the smelting of copper alloys from recycled raw materials.

Expansion into Copper Alloys and Smelting Expertise

The Menden plant specializes in the production of copper alloys, which are used primarily in industries such as sanitation and glass manufacturing. These alloys include materials such as brass, special brass, nickel bronze, aluminum bronze, and gunmetal. Siegfried Jost also handles production residues like slag, dross, sand, and swarf, which are further processed in the electric melting plant to create high-quality alloys.

TSR’s acquisition not only broadens its portfolio but also allows the company to expand its expertise in smelting processes, particularly for copper alloys produced from recycled materials. The move marks a strategic step for TSR in enhancing its recycling capabilities and furthering its commitment to sustainable metal production. In a LinkedIn post on November 4, TSR emphasized that the acquisition would enable the company to leverage its in-depth know-how of smelting processes to meet the growing demand for high-quality copper alloys in various industries.

Strategic Growth for TSR Recycling

By integrating Siegfried Jost’s advanced alloy production facility, TSR is set to improve its market position and expand its service offerings in the copper alloys sector. The move aligns with the company's broader goals to increase its recycling operations, contributing to both sustainability and the growing demand for recycled metal alloys in European industries.

Sofia Med Copper Fabricator Secures EBRD Loan to Raise Recycled Metal Use

Sofia Med

Sofia Med copper fabricator has secured a €20 million loan from the European Bank for Reconstruction and Development to increase recycled metal use and reduce water waste at its Bulgarian operations. The financing supports Europe’s wider effort to strengthen domestic copper processing and improve resource efficiency.

The loan is also notable because it is the first EBRD financing in Bulgaria that allows the borrower to pay a lower interest rate if it meets green targets. These targets are linked to recycling and water efficiency, making the facility’s environmental performance part of its financing cost.

Sofia Med copper fabricator is owned by Greek metals group Viohalco and operates downstream rolling and extrusion lines. The company processes refined copper into tubes, sheets and profiles for industrial users.

Recycled Copper Becomes Strategic for European Fabricators

European copper fabricators are increasingly important because they sit close to final industrial demand. They convert refined copper and scrap into semi-finished products used in construction, power equipment, manufacturing, heating systems and infrastructure.

Sofia Med can raise the share of secondary metal in its feedstock if suitable scrap is available. This matters because recycled copper can reduce emissions, lower dependence on primary metal and support Europe’s circular economy goals.

However, Europe still exports large volumes of copper scrap. This limits local availability for refiners and fabricators, creating a policy challenge as Brussels tries to retain more strategic raw materials inside the region.

Brussels Pushes to Keep Copper Scrap in Europe

The loan comes as Brussels considers tighter export rules under its RESourceEU plan. The aim is to protect local supply of recyclable materials and support European processing capacity.

The EBRD and European Investment Bank are also backing projects across the copper value chain. Aurubis secured a €200 million EIB loan last September to expand its Pirdop tankhouse, showing that European institutions are targeting both refining and downstream fabrication.

The €20 million loan for Sofia Med is still only a limited part of the upgrades the site may need. Its impact will depend on how much copper scrap the company can secure and how quickly it can reduce water waste.

The Metalnomist Commentary

Sofia Med’s loan shows that recycled copper is becoming part of Europe’s industrial security agenda. The next challenge is not only financing upgrades, but keeping enough copper scrap inside Europe to feed refiners and fabricators.

China Expands Copper and Aluminium Duty Exemptions for 2025

Recycled Copper

In a bid to promote sustainable growth, China has announced expanded import duty exemptions on recycled copper and aluminium feedstocks for 2025. This change is part of the country’s broader strategy to bolster green and low-carbon development in its metal industries. The move reflects China’s ongoing efforts to ease restrictions on secondary copper and aluminium imports, which could have significant implications for both domestic and international markets.

Expansion of Duty Exemptions

Under the new policy, China will expand the HS code 74040000 to include “recycled copper and alloy feedstock” for 2025, up from just "recycled brass copper feedstock" and "recycled copper feedstock" in 2024. Similarly, the HS code 76020000 will also broaden to cover “recycled aluminium and alloy feedstock” from the previous scope of "recycled cast aluminum alloy feedstock" in 2024. The import duties for both categories will remain at zero for 2025, continuing the exemptions in place for 2024.

This expansion is intended to enhance the country’s circular economy and support the shift toward greener practices in the recycling and processing of metals. According to China’s Ministry of Commerce, the adjustments will help promote low-carbon development, driving demand for sustainable production methods.

The move follows an increase in China’s copper scrap imports, which saw a 14% rise from January to November in 2024 compared to the previous year, signaling a positive trend for the country's metal recycling sector.

Continued Duties on Other Base Metals

While China is easing import duties on certain recycled metals, the government has decided to keep export duties on various base metals, minor metals, ferro-alloys, and rare earths in place for 2025. This includes maintaining the 40% export duty on ferro-chrome, a 25% duty on silico-manganese and ferro-silicon, and a 20% export duty on ferro-manganese. These duties align with China’s broader objective of controlling the export of energy-intensive and pollution-heavy products.

The country will also continue with export duties on a variety of concentrates, such as lead, zinc, tantalum, and niobium, as well as a 20% duty on tin, tungsten, and antimony concentrates, which are less frequently exported due to China’s limited domestic resources of these metals. Additionally, China will maintain duties on several metals, including a 5-15% export duty on copper, nickel, and zinc alloys and products.

China's new policy also includes a zero import duty on spodumene for 2025, marking another significant move in its strategic approach to securing key raw materials for its growing battery and electronics industries.

Mitsubishi Materials Onahama Copper Plant Shutdown Signals Pressure on Japanese Smelting

Mitsubishi Materials

Mitsubishi Materials Onahama copper plant operations will be suspended by the end of March 2027 after rising costs, tougher concentrate terms, and overseas competition weakened profitability. The Japanese metals group decided on 25 March to close the site’s copper smelting and refining operations as part of a broader structural reform.

The Mitsubishi Materials Onahama copper plant had already faced cost-cutting measures, including reduced copper concentrate processing and the suspension of certain processes. However, these steps failed to restore earnings as copper concentrate purchase terms deteriorated sharply.

The decision highlights the growing pressure on traditional copper smelters. When treatment and refining charges fall below zero, smelters effectively pay miners or traders to process concentrate, reversing the normal economics of the business.

Negative Treatment Charges Reshape Copper Smelting Economics

Copper concentrate treatment charges and refining charges have collapsed since January 2025, falling below $0/t and $0/lb on a cif China basis. The latest assessments stood at -$67/t and -$6.7/lb on 20 March, showing how tight concentrate supply and intense smelter competition have distorted processing margins.

This environment has become especially difficult for Japanese smelters, which face high operating costs and competition from larger overseas facilities. For Mitsubishi Materials, the Onahama operation could no longer secure profitability under these market conditions.

MMC expects to book an impairment loss of ¥21 billion, or about $132.5 million, in its January-March quarterly report. Most of that loss will be linked to fixed assets at the Onahama smelter and refinery.

E-Scrap and Secondary Smelting Become MMC’s Strategic Direction

Mitsubishi Materials Onahama copper plant closure is part of MMC’s policy of creating future growth through resource circulation. The company aims to expand secondary smelting operations that use electronic scrap and copper scrap as raw materials.

This shift reflects a broader industry trend. Copper producers are increasingly looking at recycled feedstock to reduce exposure to volatile concentrate markets, improve sustainability, and secure alternative metal units.

Not all Onahama operations will close. The electrolytic plant and facilities not directly tied to copper concentrate processing, including the precious group metals plant, will continue operating beyond the smelting and refining shutdown.

The Metalnomist Commentary

MMC’s Onahama decision shows that copper smelting capacity is being reshaped by concentrate scarcity and recycling economics. Japan’s challenge is not only maintaining copper supply, but repositioning its metallurgical base toward scrap, e-scrap, and higher-value recovery.

Alus and BWM Forge Strategic Partnership to Revolutionize US Battery Recycling

Blue Whale Materials (BWM)

Alus, a leading South Korean aluminum producer, has entered into a groundbreaking partnership with Blue Whale Materials (BWM), a prominent US-based battery recycler, to tap into the American battery recycling market. This collaboration centers around BWM's facility in Bartlesville, Oklahoma, marking a significant step towards enhancing sustainable battery production in the United States.

Expanding Capacity and Utilizing Recycled Materials

Through this partnership, BWM plans to boost its production of black mass at the Bartlesville site. Black mass, a key byproduct of battery recycling involving the disassembly and shredding of batteries, contains valuable metals including lithium, cobalt, and nickel. Alus will utilize the recycled aluminum sourced from BWM to manufacture battery packs, promoting a circular economy in the metals industry.

Strategic Developments and Future Plans

The Bartlesville facility is poised to handle up to 50,000 metric tonnes per year of battery feedstock once fully operational. With a substantial investment of $55 million from the US Department of Energy received in September, BWM is well-equipped for a significant expansion. The plant is expected to commence operations in the second quarter of 2025, setting a new standard in battery recycling efficiency and sustainability.

Ascend Trafigura lithium offtake deal locks in 15,000 tonnes for 2027–2031

Ascend Elements

The Ascend Trafigura lithium offtake deal secures recycled supply for the battery chain. Ascend Elements signed a five-year agreement with Trafigura for lithium carbonate deliveries. The Ascend Trafigura lithium offtake deal covers 15,000 metric tonnes from 2027 to 2031. Financial terms were not disclosed.

This lithium carbonate offtake supports Ascend’s expansion plans. The company says the deal strengthens its North America and Europe pipeline. Meanwhile, buyers want low-carbon feedstock and secure volumes. Therefore, long-term offtake contracts are becoming a key recycling growth lever.

Offtake volumes link recycling output to global trading channels

The agreement calls for 15,000 tonnes over five years. Trafigura will take deliveries between 2027 and 2031. However, the market will watch qualification timelines and product specs. Battery recycling lithium carbonate must meet strict impurity limits for cell makers.

Ascend produces precursor cathode active materials from recycled inputs. It also produces battery grade lithium salts from spent batteries and manufacturing scrap. As a result, the Ascend Trafigura lithium offtake deal supports circular sourcing for cathode supply chains.

Europe strategy expands through GEM partnership and recycling scale-up

Ascend is building international reach through partnerships. In September, Ascend partnered with GEM to collaborate on lithium-ion battery recycling in Europe. Meanwhile, Europe needs compliant recycling capacity under tightening battery regulations. Therefore, the company can use offtake visibility to de-risk new plants and financing.

This deal also signals rising trader interest in recycled battery materials. Traders can aggregate volumes and route material to regional conversion hubs. As a result, recycled lithium carbonate may gain a clearer price discovery pathway.

The Metalnomist Commentary

Recycled lithium carbonate will compete harder as new mines ramp up after 2026. Meanwhile, offtake contracts will reward recyclers that prove consistent quality and traceability. Therefore, Ascend should publicize certification and carbon data to defend premiums.

EU Russia Sanctions Package Tightens Shadow Fleet and Metals Trade Controls

EU, Russia

EU Russia sanctions package measures have formally expanded as Brussels adds new pressure on Russia’s oil logistics, maritime services and raw materials trade. The 20th sanctions package adds 46 vessels to the EU’s shadow fleet list and creates the legal basis for a future ban on maritime services linked to Russian crude and oil product shipments.

The EU Russia sanctions package brings the total number of designated shadow fleet tankers to 632. These vessels face port access bans and restrictions on a broad range of maritime transport services.

The EU Russia sanctions package aims to close loopholes around the G7 oil price cap. Brussels is targeting vessels, ports, terminals, tanker sales and service providers that may help Russia move crude and oil products outside the sanctioned framework.

The package also expands trade restrictions to several raw materials and metals, including aluminium products, silicon, lithium oxide, cobalt, molybdenum, magnesium, platinum, rhodium and iridium. This widens the impact from energy sanctions into industrial supply chains.

Shadow Fleet Measures Push Sanctions Deeper Into Maritime Logistics

The main focus of the package is Russia’s shadow fleet. These tankers have become central to Moscow’s efforts to move crude and products while avoiding price-cap restrictions and western maritime services controls.

The EU has now banned transactions with the Russian ports of Murmansk and Tuapse, as well as the oil terminal at Karimun in Indonesia. Brussels said these locations are being used to bypass the price cap.

Earlier sanctions already covered Ust-Luga, Primorsk and Novorossiysk. The wider port and terminal coverage shows that the EU is moving from targeting ships alone to targeting the infrastructure that supports Russian oil flows.

Georgia’s Kulevi port was not included after EU officials said they received strong commitments. This shows that Brussels is also using sanctions pressure to influence third-country port behaviour.

The package introduces mandatory due diligence and a “no-Russia” clause for tanker sales. This is intended to prevent vessels from moving into Russian-linked fleets through resale channels.

The EU has also prohibited maintenance and other services for Russian LNG tankers and icebreakers. From January 2027, LNG terminal services to Russian entities, or entities controlled by Russian nationals or operators, will also become illegal.

The future maritime services ban is especially important. Under current rules, shipping, insurance and other services are still allowed for Russian oil shipments sold at or below the G7 price cap.

The new framework prepares the legal basis for a stricter system. The EU plans to co-ordinate any future ban with G7 partners and other price-cap countries.

This would mark a significant escalation. A broader maritime services ban could reduce Russia’s ability to use western-linked insurance, shipping support, technical services and terminal access even when cargoes claim price-cap compliance.

Metals Restrictions Extend Pressure Into Industrial Supply Chains

The sanctions package also expands pressure beyond oil and gas. It adds 120 individuals and entities to the EU sanctions list, including 36 designations linked to the upstream and downstream oil sector.

Some listings involve entities based in third countries. This reflects the EU’s increasing focus on sanctions circumvention through non-EU jurisdictions.

The trade measures are also important for metals and industrial materials. The EU introduced a yearly ammonia import quota of 688,000t and widened import restrictions to additional raw materials and metals.

The restricted materials include steel, aluminium products, silicon, salt, calcium oxide, rubber, lithium oxide, cobalt, molybdenum, magnesium, platinum, rhodium and iridium.

This matters because Russia remains connected to several industrial raw material flows. Even when volumes are not dominant, sanctions can affect procurement, compliance, documentation and alternative sourcing decisions.

Platinum, rhodium and iridium are particularly sensitive because they support automotive catalysts, hydrogen technologies, electronics, chemicals and high-performance industrial applications. Any restrictions on Russian-linked flows could increase attention on South African, recycled and alternative supply.

Cobalt, molybdenum and magnesium restrictions also carry strategic relevance. These materials feed batteries, superalloys, specialty steels, aerospace, automotive and defence-related supply chains.

Aluminium product restrictions may add another layer of complexity to European aluminium procurement, especially as the market already faces higher premiums, energy cost pressure and disrupted trade flows.

The package was adopted after Russian pipeline crude flows resumed to Hungary and Slovakia through the Druzhba system. That restart removed a political obstacle that had delayed approval.

The EU also formally adopted a €90bn loan package for Ukraine. Disbursements could begin next month to support urgent budgetary and defence needs in 2026 and 2027.

The combined measures show that Brussels is linking sanctions enforcement, energy security, Ukraine financing and industrial trade policy more tightly. Russia sanctions are no longer limited to direct oil and gas restrictions. They now reach vessels, ports, financing, raw materials, metals and third-country trade channels.

The Metalnomist Commentary

The 20th EU Russia sanctions package shows that enforcement is moving from headline bans toward logistics, ports and material flows. For metals buyers, the key risk is not only direct Russian origin, but the growing compliance burden around third-country routing, documentation and restricted raw materials.

Aurubis EIB copper expansion loan strengthens Europe’s critical copper supply

Aurubis

The Aurubis EIB copper expansion loan marks a major step in Europe’s critical raw materials strategy. The €200mn investment loan from the European Investment Bank (EIB) will fund capacity growth at Aurubis sites in Bulgaria and Germany. As a result, the Aurubis EIB copper expansion loan directly targets higher refined copper output and more recycled copper flows into EU industry.

The Aurubis EIB copper expansion loan is also the first EIB metals-sector financing under the bank’s new raw materials strategy. In March, the EIB committed to lend around €2bn a year to critical raw materials projects. These include extraction, processing, recycling and substitution technologies across the energy transition value chain. Therefore, the Aurubis EIB copper expansion loan serves as an early flagship for this new mandate.

EIB backs primary and secondary copper growth at Pirdop and Hamburg

Aurubis will use the EIB loan to expand both primary and secondary copper capacity. At Pirdop in Bulgaria, the company is investing €120mn to enlarge its tank-house. This expansion will lift refined copper cathode capacity by 50pc to 340,000 t/yr. Commissioning is planned for fiscal year 2025-26, adding meaningful volumes to Europe’s copper pool.

At the same time, Aurubis will invest €190mn in its Hamburg smelter and refinery complex. The project will enable an extra 30,000 t/yr of recycled copper scrap processing, alongside more internal smelting intermediates. Therefore, the Aurubis EIB copper expansion loan supports both mined copper and circular copper streams. This dual focus directly aligns with EU priorities on recycling, resource efficiency and lower embedded emissions.

These expansions will further cement Aurubis’ position as Europe’s largest copper producer. Increased output from Pirdop and Hamburg should improve regional security of supply. That security is critical as copper demand rises for grid upgrades, renewables, electric vehicles, artificial intelligence and data centre infrastructure.

Copper market vulnerability drives EU support for Aurubis

Recent market dynamics underline why the Aurubis EIB copper expansion loan matters for Europe. Earlier this year, a huge influx of global copper flowed into the US. End-users and traders stockpiled metal ahead of expected US copper import tariffs that never materialised. However, the diversion exposed how quickly European copper availability can tighten when trade flows shift.

Europe’s vulnerability stems from its heavy dependence on imported copper concentrates and refined metal. Any tariff scare, logistics disruption or geopolitical shock can pull units away from the Atlantic basin. Therefore, building more regional smelting, refining and recycling capacity has become a strategic priority. The Aurubis EIB copper expansion loan is a concrete step toward that goal.

By boosting both primary cathode output and recycled copper processing, Aurubis supports a more resilient supply base. Meanwhile, EIB-backed capital lowers financing costs and signals strong policy alignment. Over time, this combination could help stabilise European copper premia and reduce exposure to external shocks.

The Metalnomist Commentary

Aurubis’ deal with the EIB shows how copper is moving to the centre of Europe’s industrial and energy transition policy. The mix of primary capacity growth and scrap-based expansion reflects a realistic view of future copper constraints. Market participants should watch how quickly the new tank-house and Hamburg upgrades translate into additional cathode and scrap-processing volumes, especially if trade tensions divert metal again.

Novelis and TSR Partner to Boost Recycled Aluminum Supply for Automotive Industry

Novelis

In a move to bolster sustainable production, U.S.-based aluminum recycler Novelis has signed a three-year agreement with European scrap processor TSR Recycling. This strategic partnership secures a stable supply of 75,000 tonnes of end-of-life aluminum scrap annually, specifically aimed at producing low-carbon aluminum sheet for the automotive industry.

Rising Demand for Low-Carbon, Recycled Aluminum

With the aluminum sector prioritizing recycled materials to lower carbon emissions, Novelis aims to increase its recycling volume by 50,000 tonnes this year, adding to the 700,000 tonnes processed in Europe last year. The Novelis-TSR partnership supports growing demand from automotive customers for high recycled-content alloys, essential for reducing the sector’s carbon footprint. This deal further solidifies TSR’s longstanding relationship with Novelis, highlighting the importance of securing post-consumer scrap for sustainable production amid increasing industry demand.

"Availability of end-of-life material is crucial as Novelis collaborates with automotive customers to integrate more pre- and post-consumer scrap," Novelis stated, reflecting the sector’s drive toward sustainability.