As the first generation of electric vehicle (EV) batteries come to the end of their lives, a scrap market could open for different battery materials by 2025.
The amount of material available for recycling is expected to increase from a negligible amount today to about 86,000 t/yr in 2025. Further than that, the volume of recyclable battery material emerging on the global market is expected to reach 790,000t by 2030 and 2.593mn t by 2035.
The cumulative amount of recyclable battery material in the market today is also negligible, but is expected to reach 219,000t by 2025, 2.161mn t by 2030 and 10.947mn t by 2035, according to forecasting from Strategy Engineers.
Most material will come from li-ion batteries, which contain lithium, manganese, cobalt, nickel and graphite. All of these metals are extractable in some form from batteries, some more easily than others.
Extraction for re-use
Some companies are already extracting metal from batteries to re-use in new battery materials.
Belgian chemical company Umicore's processes break down the battery to extract its metals. Most of the metal extracted is purer than the form in which it entered. The company recently agreed to a closed-loop recycling scheme with Audi for its e-Tron batteries.
It is expected that many car manufacturers and cell makers will do the same, to boost environmental credentials and maximise profits. Swedish battery maker Northvolt recently has announced plans for a pilot recycling plant in the country.
There are some companies in the US already shredding and powdering batteries down to a product called black mass, which makes extraction easier. In the future, this product could be openly traded as a form of scrap, in a similar way to shredded steel. A US battery market analyst said he knew of at least one company selling black mass in the hundreds of tonnes.
Millions of used batteries also open the possibility of a market for scrap batteries in their entirety. This could take the form of batteries priced by type and chemistry type, or by battery chemical composition. Argus already prices several complex grades of scrap steel and aluminium containing several metals and alloying elements.
The most common battery cells would be those produced by large manufacturers like China's CATL or South Korea's LG Chem.
Second life, new technology could limit recycling outlook
Battery makers are increasingly looking to second-life applications to increase the sustainability of their batteries.
Instead of being broken down into their raw materials, used batteries would be utilised in low-energy applications such as home energy and solar storage.
The first life of a typical li-ion battery ends at 8-12 years. After that, it has degraded to about 80pc of its original capacity. A second life will extend the overall lifetime of a battery by 5-10 years.
Battery makers are also developing technology that will allow longer-life batteries and easier recycling. It is expected that the second and third generation of EV batteries will be easier to recycle into their component parts and designed for closed-loop recycling by the original manufacturer.
