While we typically think of battery recycling as just an environmental imperative, the opportunities and stakes are far greater. It is a once in a generation opportunity to move in the direction of a truly circular battery supply chain that will foster innovation and value creation for many years to come.
By Leo Raudys
Americans are increasingly relying on batteries to power everything. Batteries are in our cars, in our remotes, phones, e-bikes and just about every electronic device imaginable. Batteries are a mission-critical component of our very portable work and personal lives, making U.S. consumers more reliant than ever on the progressively scarce materials used to make them. The massive consumption of electric mobility products alone will make 2022 a year of transformation in how consumers, industry players and governments think about the lifecycle1 of the once small and insignificant battery.
This reckoning is as much a matter of global public policy as it is of consumer habits. Governments around the world have bet heavily on electrification, particularly e-mobility, as a solution to climate change and are making it an integral part of their efforts to meet national and international commitments on carbon emissions reductions. The European Commission aims to reduce its transport-related greenhouse gas emissions by 90 percent2 by 2030, in part by getting 30 million zero-emission cars on the road. The Biden administration, for its part, hopes to see zero-emission vehicles account for 50 percent of all new car sales in 2030.3
This convergence of consumer demand and political will has created something of a golden goose for businesses in the recycling industry, who will capitalize on the need to sustainably process this glut of new batteries while presenting new, circular solutions to the supply chain challenges already facing battery manufacturers. Allied Market Research projects the lithium-ion recycling market to grow to nearly $40 billion this decade, a figure driven heavily by the adoption of electric transportation options.4
Yet, as the sector grows, so too do the challenges. For governments, a major focus is on the safety concerns of daily battery use, as well as proper disposal. This is resulting in legislative and regulatory protections for communities and waste workers. Consumers are seeing this play out in wait times for devices due to supply chain shortages that cause ripples in the supply chain. For environmentalists, a growing question is what is going to happen to all of these batteries when they reach their end-of-life? And for those in, and involved with, the battery industry, a big question remains to be fully answered: how will they put together the necessary patchwork of relationships and partnerships to ensure a steady and reliable stream of batteries to recycle, while handling the regulatory and safety requirements along the way? These are critical issues that will shape the trends we are already witnessing, and will drive innovation in the battery industry in 2022 and beyond.
New Recycling Plants and Processes
We will continue to witness enormous growth in U.S.-based recycling plants and technologies, marking a departure from the typical practice of having to export batteries overseas for processing. We see new announcements nearly daily as companies like from west coast-based Redwood Materials, Worcester-based Ascend Elements and Canada鈥檚 Lithion Recycling鈥攁ll of whom are not only paving the way for new recycling and reuse options, but also employment opportunities in their host communities.
Why this Trend?
Historically, consumer batteries fit in the palm of our hands. But for EVs, e-bikes, and outdoor power equipment, those batteries are rapidly increasing in size and power, posing technical and logistical complications to safe, efficient and environmentally sound recycling options. If the ultimate impact on the environment is worse thanks to poor recycling, any 鈥済reen鈥� potential of an electrified future is negated. The growth and innovation we are seeing in the battery recycling industry is a trend that should generate optimism that we are quickly moving in the right direction on greener sourcing.
New Legislation and Regulation
The unintended safety implications of improper battery management is becoming more prominent across the U.S. and abroad. A 2021 analysis by the U.S. EPA5 reported 245 fires in 28 states across 64 waste facilities, including MRFs, transportation vehicles, and other waste management industry locations, caused by, or likely caused by, lithium-based batteries between 2013 and 2020. State governments and major cities alike are starting to make battery safety and battery recycling a priority through new legislation and rulemaking. Mandates requiring producers to implement recycling options or take-back programs for single-use and rechargeable batteries of all sizes are already on the books in many states and municipalities. Yet, many will require modernizing, and we are already seeing action on city councils and in state houses to adequately prepare for skyrocketing battery use, while balancing innovation, safety and environmental impacts.
Why this Trend?
Consumer battery laws have helped make communities safer for decades by increasing public awareness about battery safety to lower the likelihood of battery-caused fires. They have also made it easier for residents to recycle batteries and other devices that they might otherwise not know what to do with. In 2022, states like Washington and California are taking a closer look at how to adapt these extended producer responsibility, or EPR, models to address issues related to larger batteries like we are seeing in electric vehicles. This should help 鈥渃lose the loop鈥� for batteries and will complement the Biden administration鈥檚 efforts to enhance electric vehicle production and rollout.
Closing the Loop
Battery recycling will become HOT. With some estimating as little as 15 percent of all batteries in use being recycled, this leaves tremendous room to grow when it comes to truly closing the loop of the battery supply chain. It also creates strong market signals that encourage investment and innovation in the recycling industry.
Why this Trend?
Skyrocketing demand for the precious metals required to make lithium-ion batteries that power most of our devices is set to dramatically outpace supply. This creates a significant barrier for manufacturers relying on foreign mining operations for their supply chain. Companies are betting on increasingly efficient recycling processes to extract and reuse key metals to fill these gaps. In the long run, partnerships across industries between recyclers, industry experts, and manufacturers will bolster this circular economy and reduce the environmental strain of mining for virgin materials.
A Clear Picture
Put together, these trends paint a clear picture: climate action and other market forces are accelerating the adoption of batteries. While we typically think of battery recycling as just an environmental imperative, the opportunities and stakes are far greater. It is a once in a generation opportunity to move in the direction of a truly circular battery supply chain that will foster innovation and value creation for many years to come. | WA
Leo Raudys is CEO and president of Call2Recycle, Inc., a not-for-profit organization operating the country鈥檚 premier battery collection, logistics and recycling program deeply-rooted in its commitment to safety and environmental excellence. Working in partnership with its Board of Directors, Raudys oversees Call2Recycle鈥檚 strategic direction and overall performance of Call2Recycle through innovative, end-of-life solutions that adequately address the responsibility that comes with batteries. For more information, visit .
Notes
www.sciencedirect.com/science/article/abs/pii/S0048969721079493#!
www.ey.com/en_gl/energy-resources/when-does-reinventing-the-wheel-make-perfect-sense
www.axios.com/biden-electric-vehicles-2030-016cfa6b-377a-418b-8f98-6eadc70084fb.html
www.prnewswire.com/news-releases/lithium-ion-battery-recycling-market-to-reach-38-21-bn-globally-by-2030-at-36-0-cagr-allied-market-research-886028135.html
www.epa.gov/system/files/documents/2021-08/lithium-ion-battery-report-update-7.01_508.pdf