최초입력 2025.05.15 11:18:35
China’s aggressive purchases of “black mass” in South Korea are straining the country’s battery recycling industry, driving up raw material costs and forcing some domestic recyclers to consider exiting the market.
Black mass, or the powdery residue of shredded used batteries, is a critical input for manufacturing cathode materials in lithium-ion batteries. While Korea relies heavily on imports, particularly from Europe, Chinese companies are now buying up local supplies at elevated prices, industry sources said on Wednesday.
Due to import restrictions, Chinese firms cannot bring black mass directly from Europe and are sourcing it indirectly through Korea instead, pushing up prices and severely tightening local supply. As a result, the average operating rate of battery recyclers in Korea has dropped below 50 percent, down from 85 percent three years ago.
Several recycling companies are now on the market for potential sale. China is expected to lift its ban on black mass imports in July 2025, potentially intensifying competition in global markets.
In response to domestic industry concerns, Korea’s Ministry of Environment has announced plans to revise the waste shipment act to restrict the export of key waste resources, including black mass, if necessary.
Despite a surge in black mass outbound sales - rising from $33.5 million in 2022 to $49.03 million in 2024, according to customs data - no official shipments to China are found in trade statistics, raising questions about how much material is being rerouted via indirect channels.
Industry experts are calling on the government to go beyond regulatory controls and establish a national stockpile of waste battery materials to keep prices steady and secure strategic resources over the next three to four years.
The Ministry of Environment included measures to stabilize the supply and demand of recycled resources, including black mass, in the measures announced today. It decided to review a plan to recognize defective products (scrap) from the cathode material manufacturing process as recycled resources. It also decided to extend the storage period for bipolar material scrap and copper scrap from the current 30 days to 180 days.
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