When EV battery packs can't be refurbished or repurposed or have served their second-life application, it's time to recycle them. As with repurposing, since most EV battery packs are still powering vehicles, recycling battery packs is done on a small scale for now. EV battery packs are very complex, and they contain various metals, a liquid electrolyte, circuitry, sensors and more. But what battery recyclers want are the metals, specifically lithium, cobalt, and nickel.
Those metals have considerable value and can be used to produce new EV batteries.
When EV batteries are manufactured, most of their metals are sourced from mining operations in foreign countries. In some cases, these countries have poor human rights records, or the mining operation negatively impacts the local environment. Reducing dependence on foreign countries is just one reason why the U.S. needs its own source of metals needed for EV battery production. Currently, battery recycling in North America doesn't produce enough raw materials for EV battery production, but the hope is that it will in time.
In a Wired article, Alissa Kendall, a professor of civil and environmental engineering at the University of California, Davis, said, "Recycled materials could supply more than half of the cobalt, lithium, and nickel in new batteries by 2040, even as EVs get more popular." If battery recycling provides a significant amount of the needed raw materials in the future, then it can also help reduce potential future supply shortages and help keep the price of raw materials from skyrocketing if there is a supply chain disruption.
There are other reasons why EV battery recycling is crucial. The Biden administration's Inflation Reduction Act of 2022 encourages sourcing raw materials from the U.S. or from a country that has a free-trade agreement with the U.S. If automakers want their EVs to qualify for the tax credit, then a certain percentage of the rare earth metals in the battery packs must come from the U.S. or a free-trade country. And battery recycling companies are among automakers' sources for the raw materials.
A more obvious reason is the need to keep battery packs out of landfills because they can leak hazardous materials into the ground and cause fires. The EPA states that lithium-ion batteries from small electronics caused more than 240 fires at 64 waste management facilities between 2013 and 2020.
EV battery recycling locations
According to Wired, most lithium-ion battery recycling is currently done in China, where 70% of lithium-ion batteries are made. However, the lithium-ion battery recycling industry is quickly growing in North America. Tesla's former CTO, JB Straubel, founded Redwood Materials, one of North America's largest lithium-ion battery recycling companies. According to Redwood Materials, the company will produce enough anode and cathode (components of battery cells) for 1 million EVs annually by 2025. The company says it recovered 1,268 battery packs from a one-year pilot program in California. Redwood Materials works with several automakers including Ford, Volvo, Volkswagen, and Toyota.
Li-Cycle, a Canadian lithium-ion battery recycling company, is another major player in the industry. The company says it currently has four recycling facilities in North America that can process 51,000 tons of lithium-ion battery materials a year. A new facility will open this year in New York, and the company has plans to expand to Europe. According to the New York governor's office, Li-Cycle's "spoke" facilities break down batteries into a black mass consisting of lithium, cobalt, and nickel. Then a "hub" facility will convert the black mass into battery-grade materials. Li-Cycle has partnered with many companies around the world including General Motors and LG Energy, one of the largest EV battery manufacturers in the world.
EV battery recycling methods
There are three methods of EV battery recycling. Pyrometallurgy is a common technique that melts the battery in a furnace to separate unwanted materials and extract valuable metals. It's not a sustainable method because it's energy-intensive and creates air pollution.
Hydrometallurgy is becoming increasingly popular. This method dissolves the batteries in acid, and the metals are then extracted using solvents. Hydrometallurgy is more environmentally friendly and can extract more raw materials than pyrometallurgy. Direct recycling is an emerging method that's currently being done on a small scale. The battery is mechanically separated, but the wanted components aren't destroyed and can be reused with less refining. This technique is the least energy-intensive and creates less pollution, but it needs to be improved for large-scale use.
In summary
While the production of raw materials that make EV battery packs isn't environmentally sustainable yet, the result is a product that can be initially used for over 10 years in an EV, then potentially be put to use in a second-life application for several more years, then finally be recycled to make a new generation of batteries. That's the goal, at least. Companies that repurpose and recycle EV batteries are still in their infancy, but as more EV batteries come to the end of their life, that won't be the case anymore. According to Precedence Research, the EV battery recycling market is already worth about $2 billion, and it's projected to be worth $19.3 billion by 2030. Transparency Market Research says the value of the EV battery repurposing or second-life industry is expected to reach $9.9 billion by 2031. EV battery recycling and repurposing are crucial to help make the future of transportation more sustainable.
This story was produced by Edmunds and reviewed and distributed by Stacker Media.