Striking gold with EV battery recycling Flashcards
What is the recycling value chain for end-of-life EV batteries
The recycling value chain for end-of-life EV batteries can be broken down into four steps: (1) battery collection, logistics, and sorting; (2) battery discharge and dismantling; (3) pretreatment with battery shredding and black mass production; and (4) battery materials recovery with chemical processes. The last step, which includes refining and possibly blending with primary materials to deliver attractive volumes of battery grade content, is critical to closing the circularity loop
What percentage of projected global car sales by 2030 will be electric
40%
What are some uncertainities with EV uptake
Securing sufficient battery materials—especially for the cathode of Lithium-Ion (Li-Ion) batteries. Potential supply chain disruptions and price volatility that reduce the availability of these materials or make them overly expensive are worrisome roadblocks to a fast expansion in EV battery production.
Moreover, the carbon footprint of EV batteries is a concern for environmentally conscious potential buyers, which could also negatively impact EV uptake.
Why do value chain activity such as battery shredding face over capacity
Low Barriers to Entry: Activities like shredding are relatively easy and inexpensive to set up compared to other parts of the recycling process. This ease of entry leads to more players in the market, resulting in a crowded sector.
Lack of Scrap for Recycling: Despite the growing market for electric vehicles, the volume of end-of-life batteries currently available for recycling is relatively low. This is because many of the electric vehicles sold in recent years are still in use and their batteries haven’t yet reached the end of their life.
Overcapacity Issue: The combination of a growing number of companies involved in shredding and the scarcity of end-of-life batteries leads to an overcapacity in this sector. In simple terms, there are more facilities and resources available for shredding than there is actual battery scrap to process.
What is success tied to in the EV battery recycling business
Success Tied to Ecosystem Creation: The success of companies in this industry will depend on their ability to effectively integrate these various stages into a cohesive and efficient closed-loop system. This includes establishing reliable supply chains for collecting end-of-life batteries, efficient recycling processes, and partnerships with battery manufacturers to reuse the recovered materials.
Collaboration and Integration: Success in creating such ecosystems will likely require collaboration among different players in the value chain, including battery manufacturers, recycling companies, material suppliers, and possibly even end-users and government entities.
