A bold move to reshore critical minerals refining is underway with Nth Cycle, a pioneering critical minerals refining company, securing a landmark 10-year, $1.1 billion agreement with global commodities trader Trafigura to supply refined battery metals. Announced on March 15, 2026, during the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo, this represents the largest multi-metal commercial agreement between a recycled feedstock supplier and a refiner, marking a significant shift in global supply chains.
Pioneering Electro-Extraction Technology
At the heart of this transformative deal is Nth Cycle, a Massachusetts-based critical minerals midstream refining company. Co-founded by MIT Associate Professor Desirée Plata, CEO Megan O’Connor, and Chief Scientist Chad Vecitis, Nth Cycle specializes in a patented electro-extraction technology. This innovative approach, embodied in their proprietary “Oyster” system, utilizes electricity, chemical precipitation, and filtration for refining. This method offers a substantially more environmentally friendly alternative to traditional, capital-intensive refining processes, reducing greenhouse gas emissions by 44% compared to traditional recycling and a staggering 92% compared to laterite mining.
“This partnership with Nth Cycle is crucial for strengthening and diversifying critical minerals supply chains, an imperative for the global energy transition,” stated Daniel von Arx, global head of battery metals at Trafigura.
The $1.1 Billion Agreement: What it Entails
Under the terms of the binding 10-year agreement, Trafigura will purchase 2,000 tonnes of contained nickel in mixed hydroxide precipitate (MHP) and 1,500 tonnes of lithium carbonate. These vital materials will be refined by Nth Cycle from 12,000 tonnes of “black mass” – the shredded material recovered from used lithium-ion batteries. This strategic focus on recycled feedstock underscores the growing importance of circular supply chains in the battery metals industry. Nth Cycle first commercialized its technology in 2024 at a facility in Fairfield, Ohio, where it began producing cobalt and nickel, laying the groundwork for this substantial expansion.
Expanding Operations to Reshore Critical Minerals Refining
To support the massive Trafigura agreement and further reshore critical minerals refining, Nth Cycle plans significant operational expansion. While their initial commercial system is in Fairfield, Ohio, producing nickel cobalt MHP, new operations are slated for South Carolina and the Netherlands. The South Carolina project, aptly named Project SHIELD (Strategic Hub for Industrial Electro-Extraction & Logistics Defense), aims to bolster domestic refining capabilities. The European expansion is backed by a substantial €7.5 million grant from the Dutch National Growth Fund. Site selection for these new facilities is expected to be completed in 2026, with full operations scheduled to commence in 2028.
This initiative directly addresses the urgent need to bring critical minerals refining back to the U.S. and Europe. With approximately 85% of the world’s critical minerals currently refined in China, Western nations face significant economic and national security vulnerabilities. Nth Cycle’s modular “Oyster” system is designed to overcome the challenges of traditional refining – its capital intensity, time-consuming nature, and environmental impact – by reducing build times, capital intensity, and emissions. This makes domestic refining a more viable and sustainable option, aligning perfectly with U.S. federal initiatives and EU regulations focused on building robust circular supply chains and reducing reliance on foreign critical mineral sources for the booming electric vehicle and energy storage sectors.
The Nth Cycle-Trafigura deal represents a pivotal moment in the global effort to secure critical mineral supply chains. By leveraging innovative technology and strategic partnerships, it paves the way for a more resilient, environmentally responsible, and domestically controlled future for battery metals refining, driving forward the clean energy transition.
