Lecture by Patrick Xu
On September 25, IRUNIVERSE held the 12th Battery Summit at the Tokyo International Forum in Chiyoda, Tokyo. Below is a summary of four presentations from the first half of the event.
“Market Data and Trends Following Implementation of Import and Export for Black Mass”
Patrick Xu, Key Account Manager, New Energy Division, Shanghai Metals Market (SMM)
SMM is one of China’s leading metal information providers, with detailed insight into the Chinese metal markets. This presentation focused on the relatively scarce data regarding trade in black mass.
By definition, black mass refers to waste material extracted from spent batteries for recycling purposes. From this, metals such as nickel, cobalt, and lithium can be recovered, or the black mass itself can be refined for reuse in new batteries. According to SMM, since around 2020, the lithium-ion battery industry has expanded primarily for EV applications, and currently, nearly 60% of industrial waste in China is battery-related. A large portion of this comes from lithium iron phosphate (LFP) batteries.
Interestingly, Xu pointed out that LFP battery waste is more cost-stable in recycling than ternary batteries (NCM/NCA), which have traditionally been used in EVs. This is because the economics of recycling depend heavily on fluctuations in metal prices. While cobalt prices have been far more volatile than lithium in recent years, LFP batteries contain no cobalt, making their waste stream more stable. Conversely, when black mass does contain cobalt, lithium tends to act as the stabilizing factor.
In terms of trade, Xu highlighted that black mass import standards vary significantly by country. Many nations only permit imports if the nickel or cobalt content surpasses a certain threshold. For example, the required cobalt content is about 80% in the US, Europe, Japan, and South Korea, whereas in Southeast Asia it is closer to 60%. This makes trade with Southeast Asia comparatively easier for Chinese companies.
China officially lifted its ban on black mass imports in August.
On this, Xu commented:
“In the short term, imports into China from other countries will likely increase. But in the mid-to-long term, the impact on China’s domestic black mass market will remain limited.”
“On the Recycling of LFP Batteries in China”
Feng Zizhen, Director of International Business, Ganzhou Longkai Technology Co., Ltd.
The third speaker was Feng from Ganzhou Longkai Technology, a Chinese battery recycling company headquartered in a mining park in Ganzhou, Jiangxi Province. Established in 2019, the company focuses on extracting lithium carbonate from battery waste.
Lithium carbonate is a core material for LFP batteries used in EVs. Longkai aims to achieve a “car-to-car recycling loop,” and has succeeded in producing 99.6% pure battery-grade lithium carbonate from crude lithium carbonate. The company also developed a process that allows battery cells to be crushed and processed without discharging them first.
During the Q&A, an audience member questioned why the company’s yield was only 15,000 tons of lithium carbonate from 80,000 tons of raw material and asked whether other products were being made. Feng replied that he would reconfirm the ratio but added that the company is also working on extracting copper, aluminum, and other metals from black mass. He also noted that factory expansion is currently underway.
Regarding raw material procurement, Feng said this remains a challenge. The volume of LFP-derived black mass in China is still small. The company imports some material from South Korea, but due to regulatory restrictions, it cannot import black mass from ternary batteries, making it difficult to keep up with demand. However, with EV adoption accelerating rapidly in China, Feng expressed confidence:
“The volume of LFP black mass will definitely increase in the future.”
“The Situation of Lead and Lithium-ion Battery Recycling in India”
Amar Singh, Secretary General, Material Recycling Association of India (MRAI)
The next presentation came from India: Amar Singh, Secretary General of MRAI, one of the world’s largest industry associations with over 1,700 members, and a close partner of the Indian government. Singh also spoke at IRUNIVERSE’s Automobile Recycling Summit IV in Tokyo held on June 25.
In India, about 40% of recycling businesses are government-run and 60% are private sector. Singh noted that the private sector is a mix of small and micro enterprises, many of which struggle with environmental compliance.
This disparity is reflected in industry structure. Of more than 800 lead-acid battery recycling firms, only 15–20 large companies account for over half of the market. As for LFP recycling, fewer than 10 companies are active, and no major players have entered the field yet. This results in a highly fragmented industry with significant differences between government-backed and private operations.
When asked by a reporter whether infrastructure such as power and logistics posed obstacles for investment in India, Singh responded:
“If you are working with government entities or companies, infrastructure issues are not a concern.”
India aims to move away from being a simple resource exporter. Currently, it exports black mass overseas, but the government’s policy is to curb outflows and foster domestic processing industries to support a circular economy. In response to a question from the audience about Japanese investment, Singh said:
“Although recent investment has slowed somewhat, we still see approaches being made toward listed Indian companies.”
“The Vision and Strategy of GreenBattery”
Rikou Fujii, COO, GreenBattery Inc.
After the international speakers, a Japanese startup took the stage. GreenBattery, established in December 2024, is a young company focused on the installation and sales of stationary battery storage systems. Despite being newly founded, it already operates from its headquarters in Minato, Tokyo, with branch offices in Tohoku and Kyushu. The company also exhibited at the 24th SMART ENERGY WEEK held at Makuhari Messe from September 17–19.
Its business involves assisting with the development of large-scale grid storage systems, covering everything from site acquisition, installation, and operation of storage batteries to regulatory applications. GreenBattery also emphasizes fast, one-stop solutions by incorporating upfront cash settlements.
The company’s foundation is driven by a sense of urgency. With Japan’s energy self-sufficiency rate at around 15%, nearly 70% of which comes from fossil fuels that are 99% imported, geopolitical risks, global conflicts, and Japan’s trade deficit all underscore the need for domestic energy solutions. Fujii explained that this led him to pursue energy independence as a corporate mission.
The company’s stated goals are:
Vision: “100% utilization of renewable energy surplus”
Mission: “Deploy 4 GWh of storage batteries nationwide”
Objective: “Achieve energy independence for Japan”
Looking ahead, GreenBattery even aims to list on NASDAQ to attract international investment.
Although the company is still in its early days without major track records, the presentation left the audience impressed with the ambition of Japan’s younger generation.
(IRUNIVERSE Kure)
