Report: Lithium-Ion Battery Recycling is an Economic and Environmental Win
Lithium-ion batteries represent over 50% of the rechargeable battery market and are on track for complete market dominance. However, the finite supply of lithium and other rare materials and the environmental impact of mining presents a serious challenge. One solution is battery recycling. Saoradh Enterprise Partners (SEP) analyzes the research, technology, and investment opportunities in this growing cleantech space in a new three-part report.
Lithium-ion batteries (LIBs) are widely used in consumer electronics, electric and hybrid vehicles, stationary energy storage, and other applications. Future demand for LIBs will be driven by the adoption of electric vehicles, with the global EV fleet projected to expand from 11 million in 2020 to almost 145 million vehicles by 2030. LIB recycling could mitigate supply chain risks, reduce the need for mining new materials, and avoid toxic waste streams. The market is early-stage, so significant investment is needed.
“The EV market is predicted to grow exponentially, and the already strained battery supply chain has become a serious constraint for vehicle manufacturers. EV makers need robust and sustainable solutions. As SEP’s report shows, there’s a strong case – both economically and environmentally – for battery recycling to be one of those solutions, and investors should pay attention.”
Technology
The three main LIB recycling methods are pyrometallurgy, hydrometallurgy, and direct recycling. SEP analyzed the environmental impact of each method across several green metrics and found that all were favorable to using virgin materials. SEP also compared the cost metrics and found that recycling is cost-competitive with using virgin materials.
SEP performed these analyses using Argonne National Laboratory’s EverBatt model in consultation with the model’s developers.
Pyrometallurgy is an established method with a short reaction time and high productivity, but it emits toxic gases and is the least favorable environmentally. Most pyrometallurgical processes cannot recover lithium. Pyro has similar cost metrics to using virgin materials.
Hydrometallurgy requires less energy than pyro and can recover lithium, but it is time-intensive and produces a high volume of waste. Hydro is favorable to pyro in four of six green metrics and usually has a slight cost-benefit over virgin materials.
Direct recycling recovers active materials essentially intact. It is highly dependent on pretreatment processes, and most innovations in this area relate to new pretreatment methods. Direct recycling has the best metrics on all fronts, with the lowest environmental footprint and the best economics.
Market & Companies
The global lithium-ion battery market was valued at $41.1 billion in 2021 and is projected to grow to $116.6 billion by 2030. SEP used the National Renewable Energy Laboratory’s LIBRA model to forecast the minerals needed for LIB production and the portion of those minerals that can be supplied through LIB recycling. Based on the forecast, battery recycling will likely supply 10% of metals (raw or as healed cathodes) globally by 2030 and 25%-30% by 2050.
“The NREL team was pleased to provide SEP access to the online interface of the Lithium-Ion Battery Resources Assessment (LIBRA) model for their analysis of the evolving battery supply chain. The model and interface continue to be updated with the latest industry and investment data to support the urgent work of building a sustainable future.”
SEP identified 64 core startup and growth companies. Of these, SEP found 13 to be most interesting to investors. The commercial readiness of battery recycling varies greatly, with some companies partnering with battery producers and preparing for commercialization and some still in R&D or at lab scale. The complete database of companies is available upon purchase of Module 2 of the report.
*Note: For additional information on NREL’s battery supply chain analysis, including the latest version of the LIBRA Model, contact Dustin.Weigl@nrel.gov.
PURCHASE THE REPORT
The BattRe report has three modules.
Module 1: Overview & Metrics Modeling is 186 pages and includes supporting data from Argonne National Laboratory’s EverBatt model.
Module 2: Existing Players is 94 pages and includes a global database of notable companies (with a US focus).
Module 3: Researchers & Market Modeling is 157 pages and includes a database of researchers and supporting data from NREL’s LIBRA model.
Each module includes one hour of individualized support from the SEP team.
The modules are available individually or in a discounted package. Find more details and purchase the reports on the SEP Marketplace.
ABOUT TOPIC REPORTS
Topic reports explore cleantech investment spaces with the aim to calibrate investors, uncover opportunities, and identify possible solutions to Solving Climate+ by 2050. SEP produces topic reports twice per quarter to gather data and insights important to evaluating key cleantech investment spaces as part of our Innovation Flow Reporting (IFR) service. Recent and upcoming reports include BattRe (lithium-ion battery recycling), Biochar, Bioplastics, Clean Food, Concrete and Cement, Desalination, and Refrigerants.
ABOUT INNOVATION FLOW REPORTING
SEP’s Innovation Flow Reporting (IFR) service is designed to illuminate innovation hubs and identify and capture the best cleantech commercialization opportunities for SEP and our corporate clients. More than just market research, Innovation Flow Reporting delivers actionable information. IFR uncovers new cleantech opportunities for corporate venture capital offices, innovation programs, product development teams, and R&D departments. We know it works because we use it to drive our investing.
ABOUT SAORADH ENTERPRISE PARTNERS
Saoradh Enterprise Partners (SEP) is a cleantech venture capital and research firm based in Boulder, Colorado. SEP partners with innovators, entrepreneurs, and corporations to find solutions at the magical intersection of science (what’s possible), finance (what’s bankable), industry (what’s needed), and planet (what matters). Learn more at www.saoradh.com.