By the end of 2020, 17.6 GWh of Li-ion batteries had reached their end of life; by 2035, this figure will balloon to more than 140 GWh. However, existing battery recycling infrastructure isn’t optimized to either handle end-of-life battery capacity or meet critical materials demands as electrification ramps up.

Historically, most battery recycling efforts offered low recovery rates for cathode active materials while consuming unsustainable amounts of energy and chemicals to do so, but new approaches have opened the door for large-scale battery recycling, according to new data from Lux Research, a leading provider of tech-enabled research and innovation advisory services.

Lux has published its new report “Clear-Cut Opportunities in Battery Recycling” covering key drivers and barriers for the adoption of battery recycling today. While China’s dominance in battery manufacturing gives it a head start in recycling, North America and Europe are seeing increasing capacities to ensure future materials security by establishing a local recycling infrastructure.

Based on these factors, Lux evaluates new technology developments that improve the recovery of materials from spent batteries and highlight collaborations that create new business opportunities for automotive OEMs, cathode manufacturers, chemicals and materials companies, and waste management companies.

Major driving factors for recycling development

While Li-ion batteries can be recycled using the traditional smelting methods common for other battery chemistries, many players in the value chain have moved to establish specific technologies to recover a larger percentage of the battery at a higher quality. Supply chain constraints are only a very small portion of what’s driving today’s battery recycling industry; Lux has identified the top three factors contributing to its accelerated development:

Policy is emerging as an important safeguard against environmental hazards associated with battery disposal. In most geography, end-of-life Li-ion batteries are categorized as hazardous materials. Only in the past decade have countries begun to outline more specific regulations for Li-ion waste disposal and recycling.

Economic development of recycling will benefit almost all players along the battery value chain. Regions without access to raw materials can take advantage of battery recycling by capturing waste batteries and re-injecting them into local battery ecosystems. Recycling activates involvement with various types of companies, which encourages further battery production network development.

Lux believes that the existing battery recycling infrastructure is not optimized to handle end-of-life battery capacity.

Technology for Li-ion battery recycling has improved in recent years, such that recyclers claim recovery rates upward of 98%. Companies are filing patents at an accelerated rate, and startups with improved recycling technology are raising substantial funding to scale up.

Key questions to be address

In order to explore opportunities in the Li-ion battery recycling industry, Lux has raised some key questions that are needed to be addressed.

For example, what technologies are needed to build effective battery recycling streams? Although battery recycling is not a new technology, the innovation space for Li-ion battery recycling is active. Developers are primarily working to increase the recovery rates of battery materials and recovering higher-purity materials to maximize the value of recycled products.

How are companies utilizing and scaling new recycling technologies? With the growing options of recycling technology, each will require its own path to market. Companies developing recycling processes must consider which chemistries can be recycled and what the resulting product will be.

Also, "What business strategies should companies consider for entry into commercial battery recycling?" For companies eager to join the battery recycling industry, there are multiple possibilities for entry. Partnerships are required for all players along the battery value chain, and that remains for entrants in battery recycling.

Additionally, recycling Li-ion batteries is a higher-stakes business than previous battery recycling efforts. Policy will promote high collection rates and assign responsibility for recycling to product integrators. Li-ion batteries will remain valuable throughout their entire lifetime, so recyclers are tasked with optimizing recovery.

According to Lux, strengthened partnerships across the battery industry value chain, quality of recovered materials and economical material recovery outline what are mostly needed for success in battery recycling.

By the end of 2020, 17.6 GWh of Li-ion batteries had reached their end of life; by 2035, this figure will balloon to more than 140 GWh. However, existing battery recycling infrastructure isn’t optimized to either handle end-of-life battery capacity or meet critical materials demands as electrification ramps up.

Historically, most battery recycling efforts offered low recovery rates for cathode active materials while consuming unsustainable amounts of energy and chemicals to do so, but new approaches have opened the door for large-scale battery recycling, according to new data from Lux Research, a leading provider of tech-enabled research and innovation advisory services.

Lux has published its new report “Clear-Cut Opportunities in Battery Recycling” covering key drivers and barriers for the adoption of battery recycling today. While China’s dominance in battery manufacturing gives it a head start in recycling, North America and Europe are seeing increasing capacities to ensure future materials security by establishing a local recycling infrastructure.

Based on these factors, Lux evaluates new technology developments that improve the recovery of materials from spent batteries and highlight collaborations that create new business opportunities for automotive OEMs, cathode manufacturers, chemicals and materials companies, and waste management companies.

Major driving factors for recycling development

While Li-ion batteries can be recycled using the traditional smelting methods common for other battery chemistries, many players in the value chain have moved to establish specific technologies to recover a larger percentage of the battery at a higher quality. Supply chain constraints are only a very small portion of what’s driving today’s battery recycling industry; Lux has identified the top three factors contributing to its accelerated development:

Policy is emerging as an important safeguard against environmental hazards associated with battery disposal. In most geography, end-of-life Li-ion batteries are categorized as hazardous materials. Only in the past decade have countries begun to outline more specific regulations for Li-ion waste disposal and recycling.

Economic development of recycling will benefit almost all players along the battery value chain. Regions without access to raw materials can take advantage of battery recycling by capturing waste batteries and re-injecting them into local battery ecosystems. Recycling activates involvement with various types of companies, which encourages further battery production network development.

Lux believes that the existing battery recycling infrastructure is not optimized to handle end-of-life battery capacity.

Technology for Li-ion battery recycling has improved in recent years, such that recyclers claim recovery rates upward of 98%. Companies are filing patents at an accelerated rate, and startups with improved recycling technology are raising substantial funding to scale up.

Key questions to be address

In order to explore opportunities in the Li-ion battery recycling industry, Lux has raised some key questions that are needed to be addressed.

For example, what technologies are needed to build effective battery recycling streams? Although battery recycling is not a new technology, the innovation space for Li-ion battery recycling is active. Developers are primarily working to increase the recovery rates of battery materials and recovering higher-purity materials to maximize the value of recycled products.

How are companies utilizing and scaling new recycling technologies? With the growing options of recycling technology, each will require its own path to market. Companies developing recycling processes must consider which chemistries can be recycled and what the resulting product will be.

Also, "What business strategies should companies consider for entry into commercial battery recycling?" For companies eager to join the battery recycling industry, there are multiple possibilities for entry. Partnerships are required for all players along the battery value chain, and that remains for entrants in battery recycling.

Additionally, recycling Li-ion batteries is a higher-stakes business than previous battery recycling efforts. Policy will promote high collection rates and assign responsibility for recycling to product integrators. Li-ion batteries will remain valuable throughout their entire lifetime, so recyclers are tasked with optimizing recovery.

According to Lux, strengthened partnerships across the battery industry value chain, quality of recovered materials and economical material recovery outline what are mostly needed for success in battery recycling.