On March 16, Reuters reported that the deal was announced on the sidelines of the India-Pacific Energy Security Ministers and Business Forum in Tokyo. This agreement demonstrates that governments around the world are striving to reduce dependence on China for critical metals.
According to the deal, Trafigura will purchase 2,000 tons of nickel in the form of mixed hydroxide precipitate (MHP), and 1,500 tons of lithium carbonate. This order is valued at $1.1 billion, making it the largest contract in the field of battery metal recycling, according to Electrek.
The materials will be refined from approximately 12,000 tons of “black material” – the recovered portion after grinding used lithium-ion batteries. This material is increasingly seen as an important input for the battery supply chain in the West.
Nth Cycle has been commercializing recycling technology since 2024 at a facility in Ohio (USA). They plan to expand to South Carolina and the Netherlands. The facility in South Carolina aims to strengthen the domestic metal supply chain for electric vehicles, storage batteries, and AI data centers.
Meanwhile, the plant in the Netherlands will pave the way for Nth Cycle’s development in Europe. This project is funded with 7.5 million euros from the Dutch National Growth Fund under the initiative for critical raw materials (CRM).
Regarding the applied technology, the company will deploy a commercial electrolysis system called Oyster at these facilities. The site selection is expected to be completed this year, with operations starting in 2028.