Glencore, Nth Cycle ink $1B battery-metals recycling deal
What's the deal? US metals refiner Nth Cycle has signed a 10-year offtake agreement worth about $1bn with Glencore, one of the largest deals seen in the US battery recycling sector. The agreement, signed on Tuesday at Glencore's New York offices, sends recycled battery metals to Glencore's US customers.
Why now? The deal landed on a brutal day for London-listed miners, as a stronger US dollar and hawkish Federal Reserve commentary hit gold, silver, and copper. FresnilloDealroom has a profile for this one. Try Dealroom →, AntofagastaDealroom has a profile for this one. Try Dealroom →, Anglo AmericanDealroom has a profile for this one. Try Dealroom →, and Rio TintoDealroom has a profile for this one. Try Dealroom → all fell; Glencore bucked the trend, closing up 6.9p at 552.5p and valuing it at roughly £64bn.
What's the endgame? For Glencore, this extends an existing push rather than a leap into new territory. It is already a major black mass marketer and bought the assets of bankrupt recycler Li-Cycle last year; Nth Cycle gives it a US refining outlet for that feedstock as Washington works to build domestic battery-material supply chains.
Nth Cycle chief executive Megan O'Connor called the arrangement "a true strategic partnership between the companies" that "really just accelerates the overall critical minerals market here in the US". Glencore said the deal aims to "help close the loop in the supply of critical minerals for our US customers".
What could go wrong? The cash flows are years away. Nth Cycle's commercial refinery is not expected to start until 2029, its location is still unannounced, and the young company must execute. It plans to go public through a merger with Kensington Capital Acquisition Corp. VIDealroom has a profile for this one. Try Dealroom → at a $585m valuation, having cancelled a Series C round, and received a $100m Department of EnergyDealroom has a profile for this one. Try Dealroom → grant in August.
The backdrop: Glencore's half-year numbers looked far stronger than a year earlier. On August 5 it reported adjusted EBITDA of $10.1bn for the first six months of 2026, nearly double the $5.4bn a year earlier, with net income of $4.4bn against a $655m loss. Net debt fell $1bn to $10.2bn, and shareholders are getting a special distribution of about $1bn plus a $500m buyback, taking 2026 returns to roughly $3.5bn.
The signal: With rare earths and trade on the agenda as President Trump hosts Xi Jinping in Washington, control of critical-mineral processing is climbing the political agenda. Glencore's bet on recycling — alongside a copper ramp targeting an annualised million tonnes by 2028 — positions it for a supply chain the US is racing to reshore.
Image credit: k4dordy
