Nth Cycle signs $1.1 billion lithium offtake deal with Trafigura

Critical metals refining company Nth Cycle inks 10-year agreement to supply nickel and lithium carbonate to commodities trader

Mar. 20, 2026 at 12:00pm

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Nth Cycle, a critical metals refining company, has signed a 10-year binding offtake agreement to supply 2,000 tonnes of contained nickel in mixed hydroxide precipitate and 1,500 tonnes of lithium carbonate refined from 12,000 tonnes of black mass to commodities trader Trafigura for about $1.1 billion. The deal underscores global efforts to reduce reliance on China for critical metals and build more diversified supply chains, particularly in the U.S.

Why it matters

The agreement highlights the growing importance of black mass, a shredded battery material that contains critical minerals like lithium, as a key feedstock for Western battery supply chains. It also supports Nth Cycle's plans to expand its modular Oyster refining system to new locations in South Carolina and the Netherlands, helping to develop domestic critical mineral processing capabilities in the U.S. and Europe.

The details

Under the agreement, Trafigura will buy the nickel and lithium carbonate refined from 12,000 tonnes of black mass by Nth Cycle. The deal builds on the commercialization of Nth Cycle's refining operations in Fairfield, Ohio, in 2024 and will support the company's expansion into South Carolina and the Netherlands, where it plans to install its Oyster refining system in existing facilities. Production in those new locations is scheduled to begin in 2028.

  • Nth Cycle's refining operations in Fairfield, Ohio, are scheduled to be commercialized in 2024.
  • Nth Cycle plans to install its Oyster refining system in existing facilities in South Carolina and the Netherlands, with production scheduled to begin in 2028.

The players

Nth Cycle

A critical metals refining company that has signed a $1.1 billion lithium offtake deal with Trafigura.

Trafigura

A commodities trader that has signed a 10-year binding offtake agreement with Nth Cycle to buy nickel and lithium carbonate refined from black mass.

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What they’re saying

“There is an urgent need to build capacity for black mass refining and develop more diversified and robust supply chains, particularly in the U.S., where securing domestic critical mineral processing capabilities is increasingly central to energy and industrial policy.”

— Megan O'Connor, Co-founder and CEO of Nth Cycle

What’s next

Nth Cycle's Netherlands project will be backed by a 7.5 million euro ($8.62 million) grant awarded under the CRM Lion initiative, which will support the company's expansion into Europe.

The takeaway

This deal highlights the growing importance of recycling critical minerals from battery waste, known as black mass, to build more diversified and secure supply chains for the global energy transition, particularly in the U.S. and Europe where reducing reliance on China for these materials is a key policy priority.