Black mass bottleneck looms as US limits exports

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The US government announced an export ban on August 6 to keep battery waste at home, but the market’s big question is: Is the US ready to process it at scale?

Starting August 27, US black mass sellers must allocate 100% of monthly sales to local buyers, unless regulators grant an exception or adjustment.

Black mass is shredded material from used lithium-ion batteries, containing materials like lithium, cobalt and nickel.

The problem is, the US does not have enough downstream refining capacity to keep up with collection and shredding.

That’s why exports mattered. They acted as a pressure valve for domestic material the US market could not yet fully absorb.

Now, market players are watching Washington closely. Many expect a reversal, waivers, and incentives to help US refiners scale faster.

If that does not happen, the price risk could become real. US black mass payables, the percentage of contained metal value buyers pay for, are important to watch.

If higher-paying Asian buyers disappear, domestic prices may need to fall to match local refining economics.

And the question is not who collects the most black mass, it will be who can refine it at scale.