On April 5, 2023, Fastmarkets proposed launching black mass payable indicators for the South Korean market.
Black mass refers to the remains of a battery pack after it is shredded and processed. Depending on the type of battery being treated, it may contain volumes of nickel, cobalt and lithium which can be recovered by processors.
South Korea is one of the major markets involved in buying, trading and consuming black mass.
Fastmarkets has received a large volume of positive feedback on its proposal, and continues to speak with market participants about the specifications desired by the market. The consultation has been extended to allow more firms to have the opportunity to provide their view on the price launch before final specifications are agreed.
The specifications which were initially proposed were as follows:
EV black mass payable indicator, nickel, delivered South Korea, % payable of LME Nickel
Quality: End-of-life electric vehicle black mass composed of NCM and NCA batteries with metal content of 15-25% nickel, 5-15% cobalt, 3% lithium, max 6% aluminium, max 2% copper
Quantity: min 1 tonnes
Location: Delivered to consumer, South Korea. Other major Asian markets to be normalized.
Unit: % payable of LME nickel cash price
Payment terms: Letter of credit, current price month
Timing: 45 days
Publication: Weekly
Notes: Total cobalt and nickel content to be 20-40% min/max. Material must be dried and free-flowing.
EV black mass payable indicator, cobalt, delivered South Korea, % payable of Fastmarkets’ standard-grade cobalt low end
Quality: End of life electric vehicle black mass composed of NCM and NCA batteries with metal content of 15-25% nickel, 5-15% cobalt, 3% lithium, max 6% aluminium, max 2% copper
Quantity: min 1 tonnes
Location: Delivered to consumer, South Korea. Other major Asian markets to be normalized.
Unit: % payable of Fastmarkets’ standard-grade cobalt price (low end, $ per lb)
Payment terms: Letter of credit, current price month
Timing: 45 days
Publication: Weekly
Notes: Total cobalt and nickel content to be 20-40% min/max. Material must be dried and free-flowing.
The extended consultation period for this proposed launch starts on May 5 and will end on May 12. The launch will then take place, subject to market feedback, on Wednesday May 17.
To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter to these assessments, please contact Lee Allen by email at: pricing@fastmarkets.com. Please add the subject heading: “FAO: Lee Allen re: Asia black mass payable indicators.”
To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology.
