Why Feedstock Is Now the Hottest Asset in US Battery Recycling

Glencore and Flash Metals lock in steady e-scrap supply, showing how feedstock access is emerging as the real growth lever for US battery recyclers

27 Jan 2026

A new partnership is adding momentum to the U.S. battery recycling industry as companies seek to build domestic and resilient supply chains. An agreement reached in late December 2025 and announced in January between the global commodities group Glencore and the U.S.-based recycler Flash Metals points to a shift in priorities: access to material is emerging as a constraint as significant as recycling technology itself.

The agreement covers a wide range of electronic scrap, including lithium-ion batteries, with roughly 2,400 metric tons a year expected to be directed to Flash Metals’ U.S. operations. While binding offtake terms are still being finalized, the companies said the arrangement establishes a pathway for material to flow into domestic facilities. For an industry still waiting for large volumes of end-of-life electric vehicle batteries, that degree of supply visibility is seen as an important step.

Battery recyclers have spent much of the past decade demonstrating their ability to recover lithium, nickel and cobalt at high rates. The more persistent challenge has been sourcing enough feedstock to operate plants efficiently at scale. Collection systems remain fragmented, and competition for electronic scrap is intensifying as new facilities come online. By linking Glencore’s global sourcing network with Flash Metals’ growing U.S. footprint, the partnership is designed to ease that bottleneck.

Glencore’s move reflects a broader push by major mining and metals companies to expand further into recycling, according to industry analysts. As governments and customers press for lower emissions and greater transparency in battery supply chains, recycled materials are gaining strategic importance. Directing scrap into U.S. processing facilities also aligns with policy efforts aimed at strengthening domestic manufacturing and reducing dependence on overseas supply.

For Flash Metals, even partial certainty on incoming volumes can support expansion plans and operational efficiency. Analysts said predictable feedstock is essential for lowering costs and producing consistent recycled outputs that can compete with newly mined materials. As the sector matures, success is increasingly defined by logistics, sourcing and long-term partnerships rather than process innovation alone.

With electric vehicles, grid storage and consumer electronics continuing to proliferate, agreements that secure steady material flows are likely to shape the next phase of the U.S. circular economy. How quickly such partnerships translate into scaled production could influence recycling capacity for years to come.