Nth Cycle has signed a US$1 billion ($1.4 billion) offtake agreement to supply Glencore (LSE:GLEN) with lithium and other critical minerals extracted from recycled batteries.
The offtake agreement between the two companies covers a 10-year period and is one of the largest such agreements in the battery recycling sector in the US.
Reuters reports that the agreement was signed on 22 September 2026, just ahead of the United Nations General Assembly this week, where critical minerals are expected to be a key topic of conversation.
Under the terms of the deal, Glencore will sell around 24,000 tonnes per annum of deconstructed battery parts, also known as black mass, to Nth Cycle for processing, supplying the company with feedstock from which to extract minerals.
Nth Cycle will then supply Glencore with lithium carbonate and a mixed nickel hydroxide product. While the exact volume of material depends on the percentages of minerals in the black mass, the deal value reflects metals pricing from Q2 2026.
In August 2026, the US Department of Energy (DOE) selected Nth Cycle to enter into award negotiations for up to $100 million. The award will assist Nth Cycle in developing and constructing its commercial-scale black mass refining facility in the Southeast US.
The award selection was made by the DOE’s Office of Critical Minerals and Energy Innovation (CMEI) and Manufacturing Deployment Office (MDO), as part of the Battery Materials Processing and Battery Manufacturing & Recycling grant program. The program aims to expand US critical minerals processing and domestic battery manufacturing.
The black mass facility will be used to refine Glencore’s materials under the new offtake agreement, as well as materials from Trafigura, which signed a similar offtake agreement with Nth Cycle in March 2026, estimated at US$1.1 billion.
The exact location for the facility has yet to be announced, with Nth Cycle now looking for a larger site following the DOE’s funding selection. Operations are expected to commence by 2029.
Write to Amy Rotman at Mining.com.au
Main image: Nth Cycle
