Dead batteries turn to gold

 

Dead batteries turn to gold

 

In a lesser-known provision of the US Inflation Reduction Act, companies are racing to recycle electric vehicle (EV) batteries in North America, setting the stage for a global competition to challenge China's current dominance in this field.

 

The act contains a clause that grants American-made status for EV battery materials recycled in the US, regardless of their origin. This qualification enables automakers using these materials to access incentives for EV production, leading to a surge in US factory construction and driving research into more recyclable battery solutions. The implications of this clause could even impact the purchase of used EVs in developing countries.

 

China currently controls nearly all global EV battery recycling, and the market is projected to grow from $11 billion in 2022 to $18 billion by 2028. The minerals found in these batteries, such as lithium, cobalt, and nickel, are highly valuable, with an average worth of 1,000 to 2,000 euros per car, according to BMW's sustainability chief.

 

Recycling EV batteries is vital, considering the expected increase in EV production, and with these materials being infinitely recyclable without losing their power, they are an invaluable resource. The IRA's treatment of recycled battery materials as "locally urban mined" has spurred US companies to take faster action in recycling efforts compared to their European counterparts.

 

As a result, the US has a head start in building "closed-loop supply chains," where recycled minerals feed directly into locally produced new batteries, reducing reliance on Chinese resources. This move is not without its challenges, as China still maintains a leading position in the EV battery recycling race, with recent announcements of tougher standards and increased research support for recyclers.

 

Globally, the EV recycling industry is growing rapidly, with numerous companies attracting substantial investment from corporate giants, totaling at least $2.7 billion. Experts predict that by 2030, the volume of EV batteries available for recycling will grow over tenfold.

 

While the US is leading the way in recycling, Europe lags behind, currently shredding EV batteries into "black mass" that is sent to China for recycling. However, the EU plans to mandate minimum amounts of recycled battery materials in new EVs within eight years, incentivizing local recycling efforts.

 

As the competition intensifies, industry players aim to achieve the highest yields at the lowest costs, with better recycling processes and improved recovery rates. The focus is on preventing valuable EV batteries from leaving Europe for developing countries, where they become a cheaper transportation source.

 

In this race to recycle, the US is turning dead batteries into gold, transforming the EV landscape and paving the way for a more sustainable and responsible future for the electric vehicle industry.