A Long-Term Lithium Deal Signals Recycling Grows Up

One of the first major US long-term lithium offtake deals signals a maturing phase for battery recycling, helping cut price risk and support scale-up

2 Feb 2026

A quiet shift is taking place in the US battery recycling market. It is not flashy new tech or a surge of new plants. It is paperwork. Long-term contracts are starting to appear, and that matters.

Most recyclers are still busy proving their processes and ramping capacity. Deals tend to be short term, with prices tied to volatile spot markets. But a handful of longer commitments are beginning to surface, hinting at a more mature phase for the sector.

One of the clearest examples came in late 2025. Ascend Elements announced a multi-year supply agreement with commodities trader Trafigura for recycled, battery-grade lithium carbonate. The contract runs from 2027 through 2031 and covers about 15,000 metric tons of material. In a US recycling market where such disclosures are rare, the deal stands out.

Its importance lies less in volume than in structure. Lithium prices are known for sharp swings. Many recyclers sell intermediate products like black mass, leaving revenue exposed to daily market moves. By upgrading end-of-life batteries into refined lithium and locking in a long-term buyer, companies can smooth that risk and look more bankable.

Ascend has framed the agreement as proof that recycled lithium can meet the quality, scale, and reliability standards demanded by battery makers. Predictable demand, the company argues, is essential for financing large facilities, where costs are high and returns take time.

For Trafigura, the appeal is different. The deal offers access to a growing stream of lower-carbon lithium as automakers and battery producers face rising pressure to clean up supply chains. Recycled material also improves traceability, a concern drawing closer scrutiny from regulators and investors.

Industry watchers caution that deals like this remain the exception, not the rule. Publicly reported long-term offtakes are still scarce across the US recycling landscape. Yet even a few examples can change perceptions.

As electric vehicles spread and more batteries reach the end of their lives, long-term supply agreements may become the backbone of the next chapter. For a sector long defined by experimentation, that shift could signal something new: readiness for serious capital.