BASF halts major recycling project in latest blow for Europe battery industry

Major chemical company BASF is pausing its plans to build a large refinery for battery recycling in Spain due to sluggish adoption of electric vehicles (EVs) in the EU, the firm said late last week

BASF will pause the project until “cell capacity build-up and EV adoption rate in Europe regain momentum”, it said on Friday July 26.

It is the latest delay in an increasingly challenging environment for the European EV battery sector. BASF was itself forced to put its precursor battery materials plant in Harjavalta on hold following a decision by the Vaasa Administrative Court on February 21 this year.

Lower battery metals pricing have also knocked confidence in the recycling sector, according to market participants, while costs have spiraled at some projects, such as Li-Cycle’s large planned operation in Rochester, New York.

In Europe, several EV battery factories have either been delayed or cancelled over recent years, meaning that there is less input feedstock for recyclers than many firms had hoped.

Projects like Italvolt and Britishvolt have been cancelled, while ACC plants planned in Germany and Italy are on hold.

Although battery scrap generation is still relatively limited in Europe, significant capacities have been built to shred batteries and produce black mass.

But operational capacity to consume black mass remains low in Europe.

Several firms investing in post-processing technology have only been able to scale up to pilot or demonstration plant levels, with a major example being BASF, which itself has started operations at a prototype metal refinery for lithium-ion battery recycling in Schwarzheide, Germany.

As a result of the oversupply of materials in Europe, black mass payables are lower in the EU than in Asia.

Fastmarkets’ weekly assessment of the black mass, NCM/NCA, payable indicator, nickel, domestic, exw Europe, % payable LME Nickel cash official price and of the black mass, NCM/NCA, payable indicator, cobalt, domestic, exw Europe, % payable Fastmarkets’ standard-grade cobalt price (low-end) were 55-60% on July 24, both unchanged week on week.

Fastmarkets’ weekly assessments for black mass, NCM/NCA, payable indicator, nickel, cif Southeast Asia, % payable London Metal Exchange nickel cash official price and for cobalt, cif Southeast Asia, % payable Fastmarkets’ standard-grade cobalt price (low-end) were both 66-70% on July 24, down by 1-2 percentage points week on week from 68-71%.

Keep up to date with global market insights and predictions for the battery recycling and black mass marketTalk to us today.

What to read next
California-based lithium-sulfur battery-maker start-up Lyten has entered a binding agreement to acquire the remaining Swedish and German assets of failed Swedish battery-maker Northvolt, the US company said late on Thursday August 7.
CME lithium hydroxide futures reached record volumes in July 2025, reflecting strong market momentum and shifting price structures driven by Chinese supply disruptions. Global exchanges are playing a larger role in shaping lithium trading trends.
Rare earth permanent magnet producers outside China are securing critical materials through key deals and partnerships. These efforts aim to strengthen the global supply chain amid China’s export controls and rising demand for NdFeB magnets.
Spodumene production in Australia and Canada rose in the second quarter of 2025, with most producers maintaining profitability despite falling prices. However, several high-cost operations remain inactive amid ongoing market uncertainty.
Electra Battery Materials Corp announced on Thursday July 31 that it is starting metallurgical testing on cobalt feedstocks at its historic Cobalt Camp in Ontario and at its Iron Creek, Idaho cobalt and copper project to expand North American supply of critical minerals contained in lithium-ion batteries for electric vehicles (EVs).
Westwin Elements, America’s first nickel refinery, has secured $1.4 billion in long-term deals with Traxys, boosting the domestic critical minerals supply chain and reducing import reliance.