Platts launches daily US black mass spot price assessments

In response to market demand, Platts, part of S&P Global Commodity Insights, has launched four new daily DDP US black mass spot price assessments, effective Aug. 29, 2023. The new assessments -- the first of their kind for the US market -- build on previously launched Asian and European black mass offerings, and complement Platts existing suite of daily battery metals assessments.

Platts has observed growing interest in black mass recycling, which is expected to play an integral role in future battery metals supply. Battery production offcuts or used batteries at end-of-life are collected, dismantled and shredded to produce black mass, from which critical materials including lithium, nickel, cobalt and manganese can be extracted. The recycling of black mass has become increasingly important as a supplement to virgin mined material supply, as well as reducing the carbon footprint of the battery supply chain.

Market participants have welcomed Platts black mass assessments in Asia and Europe, appreciating the greater transparency and improved understanding of operations brought by daily coverage of a market with limited standardization currently.

Following extensive market research, Platts is focusing its US assessments and calculations on nickel-cobalt (Ni-Co) containing material, which includes both battery production scrap and spent lithium-ion batteries. The assessments reflect the percentage value, or payable, of black mass constituents lithium, cobalt and nickel, based on the minimum quality specifications of each key component.

Platts has also launched a new calculated theoretical Ni-Co black mass price -- DDP US in $/mt. The calculation combines Platts daily spot market assessments of Ni-Co key component payables with the underlying Platts or LME pricing basis for lithium, cobalt and nickel, respectively.

The new assessments and their specifications are as follows:

All origins of black mass meeting these specifications will be considered and other grades may be normalized to Platts base standards. The market close is 1630 US ET.

The calculated price for Ni-Co black mass is the sum of the following three components:

Calculated lithium component = Ni-Co black mass DDP US lithium payable x Platts Lithium Carbonate CIF North Asia price / lithium metal conversion factor x lithium base content

Calculated cobalt component = Ni-Co black mass DDP US cobalt payable x Platts Cobalt Cathode DDP US price x cobalt base content

Calculated nickel component = Ni-Co black mass DDP US nickel payable x LME Nickel daily official cash price x nickel base content

The corresponding prices used are:

Platts Lithium Carbonate CIF North Asia price (BATLC04)

Platts Cobalt Cathode DDP US (MMAEO00)

LME Nickel daily official cash settlement price (LMABF00)

Conversion factors used for calculations based on industry research are:

Lithium Carbonate to Lithium Metal - 0.190

Platts black mass assessments consider market information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications, as well as any other data deemed relevant to the assessment process.

Full description of the Platts assessments methodology and data prioritization can be found here.

The assessments are published on Platts Nonferrous Metals Alert pages, Platts Metals Daily, Platts Metals Week, Platts Dimensions Pro, Platts Market Center, and in the Platts price database under the symbols listed above. The assessments are included on pages MTL8888 and PMA8888 alongside Platts full suite of battery metals assessments.