Nth Cycle, an innovator in recovering critical minerals from electronic waste, has announced a significant milestone: a binding 10-year offtake agreement with global commodities giant Trafigura. The deal, valued at approximately $1.1 billion, will see Trafigura purchase substantial quantities of nickel and lithium carbonate produced by Nth Cycle’s advanced electroextraction technology.
A Landmark Agreement for Sustainable Battery Materials
The agreement, signed on March 18, 2026, marks a crucial step in scaling Nth Cycle’s operations and its contribution to a more circular economy for electric vehicle (EV) batteries. Trafigura will acquire 2,000 tonnes of contained nickel, delivered as mixed hydroxide precipitate (MHP), and 1,500 tonnes of lithium carbonate. These materials will be refined from an estimated 12,000 tonnes of ‘black mass,’ a crucial intermediate product derived from spent lithium-ion batteries and other electronic waste.
This substantial offtake agreement underscores the growing demand for sustainably sourced critical minerals and validates Nth Cycle’s proprietary electroextraction process. The company’s technology focuses on recovering production-grade nickel and lithium, transforming what was once considered waste into valuable resources for the burgeoning EV battery market.
Expanding Production Capacity for Growing Demand
Building on the successful commercialization of its first facility in Fairfield, Ohio, in 2024, Nth Cycle is poised for significant expansion. The company plans to establish new operations in South Carolina, USA, and in the Netherlands. These new sites will house Nth Cycle’s innovative ‘Oyster’ system, a modular and compact refining solution designed for efficient deployment at existing facilities.
Site selection for these expansion projects is expected to be finalized this year, with operations slated to commence in 2028. This strategic expansion aims to meet the increasing demand for recycled battery materials and bolster regional supply chains.
The Nth Cycle Business Model: Local, Efficient Refining
Nth Cycle differentiates itself through a business model centered on local and efficient refining. Unlike traditional, large-scale metal refineries that require massive upfront investments and operate at full capacity to be profitable, Nth Cycle’s approach offers distinct advantages.
“Traditional metal refineries assume the risk of large, fixed volumes, [face] lengthy permitting timelines, and require billions in upfront investment and full capacity utilization to operate profitably,” the company stated. “In comparison, the Oyster’s modular, compact design deploys virtually anywhere, reduces build time from five or more years to under two, [reduces] capital intensity by up to 70%, and produces competitive margins at 5-10 times smaller scale.”
This modularity allows Nth Cycle to adapt to fluctuating market demands and deploy its technology closer to the source of waste materials, reducing transportation costs and environmental impact. The reduced capital intensity and shorter development timelines make Nth Cycle’s solution more accessible and adaptable to the rapidly evolving battery industry.
Addressing the Urgent Need for Domestic Supply Chains
Megan O’Connor, founder and CEO of Nth Cycle, highlighted the critical need for increased black mass refining capacity and diversified supply chains, particularly within the United States. Securing domestic capabilities for processing critical minerals is a growing priority for national energy and industrial policy.
“There is an urgent need to build capacity for black mass refining and develop more diversified and robust supply chains—particularly in the US, where securing domestic critical mineral processing capabilities is increasingly central to energy and industrial policy,” O’Connor said. Her vision aligns with global efforts to reduce reliance on single-source mineral supplies and to create more resilient, geographically diverse manufacturing ecosystems.
Trafigura’s Strategic Partnership
Daniel von Arx, Global Head of Battery Metals at Trafigura, emphasized the synergy between the two companies. Trafigura’s extensive global network and logistics expertise will be instrumental in connecting Nth Cycle’s recycled materials to the market.
“The combination of Nth Cycle’s innovative refining technology and our global reach, scale and logistics network positions us to connect these vital resources with customers around the world,” von Arx stated. This partnership signifies Trafigura’s commitment to investing in sustainable battery material solutions and supporting the transition to cleaner energy technologies.
The Future of EV Battery Recycling
The agreement between Nth Cycle and Trafigura represents a significant advancement in the field of EV battery recycling. It demonstrates the commercial viability of recovering valuable metals from end-of-life batteries and electronic waste, contributing to a more sustainable and circular model for battery production.
As the demand for electric vehicles continues to surge globally, the importance of secure, sustainable, and domestically sourced battery materials will only increase. Nth Cycle’s electroextraction technology and its strategic partnerships are positioning the company as a key player in meeting these future demands, paving the way for a more responsible and resource-efficient battery industry.