Fastmarkets Proposes to Amend NCM/NCA Black Mass Methodology Specifications

Why It Matters

The amendment aligns price benchmarks with the evolving Chinese import regime and real‑world supply flows, affecting traders, recyclers and downstream battery manufacturers. Accurate, transparent pricing is critical for financing and risk management in the fast‑growing battery‑materials market.

Key Takeaways

• China now requires ≥25% Ni+Co in black mass.
• Fastmarkets sets new quality range: 20‑25% Ni, 3‑10% Co.
• Production scrap, not end‑of‑life, prioritized for Korea/SE Asia.
• NCA materials removed from all price assessments.
• Consultation ends March 25 2026; changes effective April 8 2026.

Pulse Analysis

China’s recent policy reversal—lifting the ban on secondary raw materials while imposing a minimum 25 % combined nickel‑cobalt content—has reshaped global black‑mass dynamics. Buyers in China and South Korea now prioritize low‑moisture, high‑purity feedstock to meet stringent import standards, driving a premium for production‑scrap derived material. This shift pressures pricing agencies to reflect true market fundamentals, as legacy benchmarks based on mixed end‑of‑life sources no longer capture the value chain accurately.

Fastmarkets’ proposed methodology addresses these market realities by defining a narrow quality window: 20‑25 % nickel, 3‑10 % cobalt, 3‑4.5 % lithium, with total Ni+Co capped at 35 % and strict impurity ceilings for aluminium, copper, iron and fluorine. By limiting the South Korea and Southeast Asia payables to production scrap and excluding NCA grades—rarely traded on spot markets—the agency aims to improve price relevance and liquidity. The EXW Europe price will now reflect hazardous‑waste origin only, preventing artificial scarcity and aligning with IOSCO‑compliant reporting standards.

For industry participants, the consultation’s outcome will influence contract terms, financing structures, and recycling strategies. A transparent, market‑driven benchmark supports investors in assessing project economics and mitigates price‑risk exposure for battery manufacturers sourcing critical metals. Stakeholders are encouraged to submit feedback before the 25 March deadline, ensuring the final methodology captures diverse perspectives and sustains confidence in the black‑mass pricing ecosystem.