Supply Chain: Recycling & Secondary Markets

Opportunities & Challenges in the Recycling Industry in 2025 Trade Policy: Chinaʼs 2025 legalization of black mass imports presents an opportunity for preprocessing recyclers, but composition requirements (e.g., water-soluble fluoride ≤ 0.4% NMC/LCO & 0.1% LFP pose a challenge. Partnerships: New partnerships between OEMs and recyclers continue to be announced (e.g., BMW with SK Tes in January 2025. These partnerships help secure feedstock for recyclers and help isolate OEMs from the raw material price volatility through fixed-price contracts. Price Volatility: Metal prices Nickel, Cobalt, Lithium, etc.) dropped significantly since 2023 and have been volatile over the last decade; however, long-term estimates of value creation potential for recycling are expected to resemble those of the primary metals industry, which shows up to 30% growth. Overcapacity: Recyclers in both the EU and China face fierce competition and overcapacity, leading to low feedstock levels and utilization rates.

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