With the rapid development of electromobility in recent years, a wave of discarded batteries is imminent. In addition, as the capacity of Li-ion batteries increases, the amount of waste batteries in battery production is also increasing rapidly, making battery recycling a focus for the market.
Interact Analysis’ upcoming Li-Ion Battery and Manufacturing Equipment report provides an in-depth analysis of the current battery recycling market and provides insight into some of the key themes covered in the report.
Li-ion companies are leaders in battery recycling
Manufacturers setting up recycling companies come from the entire battery industry chain, including upstream raw material and material suppliers, medium-sized battery manufacturers, vehicle OEMs, and companies specializing in battery recycling. In China, there are fewer large-scale companies specializing in lithium battery recycling, and the companies with battery recycling facilities currently tend to be manufacturers from other areas of the lithium battery industry chain.
In contrast, the lithium-ion battery recycling market in other major countries is dominated by large recycling manufacturers that specialize in the recycling business, such as Li-Cycle. Other companies in the lithium battery industry chain participate in the battery recycling market mainly through cooperation with recycling companies.
Collaboration on battery recycling
In addition to signing research cooperation agreements, battery recycling cooperation between companies in the lithium battery industry chain is usually carried out by signing supply agreements. These can be divided into directed supply and the establishment of a closed recycling ecosystem. In directed supply, original equipment manufacturers and battery manufacturers supply waste batteries or waste materials to recycling companies, and recycling companies supply the recycled materials obtained from the processing of waste batteries to raw material manufacturers.
In contrast, some companies are collaborating with the aim of creating a closed recycling ecosystem. Take the cooperation with Mercedes-Benz China, Catl and Brunp announced by GEM in February 2023 as an example: Mercedes-Benz China’s end-of-life batteries will be reprocessed by GEM and Brunp, with the recycled key raw materials such as nickel, cobalt, manganese and lithium being supplied to Catl’s supply chain and used to manufacture new batteries for Mercedes-Benz. Battery recycling cooperation between upstream and downstream companies in the lithium battery industry chain not only meets the requirements of environmental protection, but also maximizes the value of batteries and reduces the cost of battery production.
More companies are exploring the battery recycling business
Some companies whose main business is not directly related to batteries are also exploring the battery recycling market, such as sanitation companies and other recycling companies (including those specializing in metal recycling and solid waste recycling). Typically, these companies conduct battery recycling in cooperation with companies involved in lithium batteries, with the recycling companies supplying the products of their recycling plants to raw material manufacturers for further use in the lithium battery industry and for use in other industries. For example, the recycled nickel, cobalt and tungsten powder can be used to make hard alloys instead of directly using it to make lithium battery products.
Conclusion
With the rapid expansion of lithium battery capacity and the impending wave of discarded energy batteries, recycling has become a safe, environmentally friendly and economical way to dispose of waste batteries and raw materials. As the relevant policies and regulations are continuously improved and implemented by various countries, the battery recycling market is entering a new stage of professionalization and scale, with market opportunities continuously developing. While a restructuring of the industry ecosystem is taking place, optimizing resource allocation, strengthening technological research and development, accelerating upstream and downstream cooperation and promoting the integration of the industrial chain may become the key to success.
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