SMM Weekly Review: Black Mass Transactions Sluggish, LFP Black Mass Prices Plunge Due to Falling Lithium Carbonate Prices in Hydrometallurgy Recycling Market

July 12, 2026

SMM Global

Overview

According to SMM’s weekly review from July 6-9, 2026, transactions for black mass (spent battery powder) in the hydrometallurgy recycling market were sluggish, with prices steadily declining. The downturn was significantly exacerbated by falling lithium carbonate prices, which further depressed lithium iron phosphate (LFP) black mass prices. The widening price gap between LFP electrode black mass and general battery black mass suggests increased demand for LFP electrodes, as many LFP refurbishment companies are actively purchasing them. The recycling industry faces challenging conditions amid an overall market slowdown.

In Depth

Key Findings

According to SMM’s weekly review for July 6-9, 2026, the hydrometallurgy recycling market witnessed a significant slump in transactions for ‘black mass’—the powdered material recovered from spent lithium-ion batteries. Concurrently, black mass prices experienced a steady decline. This price reduction was notably influenced by the prevailing low prices of lithium carbonate, which, in turn, heavily impacted and drove down the prices of lithium iron phosphate (LFP)-based black mass.

Technical Details

Black mass is a pulverized mixture obtained from the mechanical crushing and separation of spent lithium-ion batteries, containing valuable metallic elements such as lithium, nickel, cobalt, and manganese. Hydrometallurgical processes are the primary technology used to recover high-purity metal compounds from this black mass. However, the review indicates weak overall demand for black mass in the market, with reduced purchasing appetite from buyers. A notable observation is the widening price differential between LFP electrode black mass and broader battery black mass (including NCM/NCA chemistries). While there’s localized demand, particularly from LFP refurbishment companies actively acquiring LFP electrodes, the market as a whole shows a pronounced slowdown.

Background & Context

The battery recycling market is projected for substantial growth in the coming decades, driven by the widespread adoption of electric vehicles (EVs) and energy storage systems (ESS). However, fluctuations in raw material markets, especially lithium prices, directly impact the profitability of the recycling industry. The current low prices of lithium carbonate reduce the market value of recovered lithium, eroding recyclers’ margins and consequently affecting black mass purchase prices. This situation could decelerate recycling investments and hinder efforts towards building a circular economy for batteries. China, as the world’s largest EV market and a leader in battery recycling technology, has market trends that significantly influence global supply chains.

Strategic Significance & Outlook

The current downturn in the black mass market poses short-term challenges for the entire battery recycling industry. Recyclers will need to enhance recovery efficiency, reduce processing costs, and strengthen strategies to manage market price volatility. From a long-term perspective, as the volume of end-of-life EV batteries significantly increases, black mass demand is expected to rebound. However, this rebound hinges on stable market prices for lithium and other critical minerals, along with continued innovation in recycling technologies (e.g., direct recycling). Government policy support and strengthened cooperation between battery manufacturers and recyclers will also be crucial elements in establishing a sustainable battery supply chain.

Source: https://news.metal.com/en/newscontent/103996781-smm-weekly-review-this-week-in-the-hydrometallurgy-recycling-market-black-mass-transactions-sluggish-prices-fall-steadil

Get our weekly technology intelligence — free

Receive an infographic that lets you judge at a glance whether each field’s analysis report is worth reading.

Subscribe Free — Weekly Tech Intelligence

By subscribing, you’ll receive Troy-Technical’s weekly technology intelligence newsletter.