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EV Expansion Means Growth for Battery Industry, Too

Several companies are announcing new operations related to electric car battery recycling and manufacturing, taking a lead in a nascent industry for the U.S.

Disassembling an electric vehicle battery.
Shutterstock
As the electric vehicle market expands in the United States, so does the battery industry. That expansion is taking the form of not only developing the technologies that go into new batteries, but recycling them later.

Redwood Materials has a lithium-ion battery recycling operation in Nevada, and just announced the development of another location in Charleston, S.C. The company participated in a pilot project in California which involved partnering with several top automakers to help establish the logistics around battery recycling.

Redwood was an active participant in the CalEPA’s Lithium-ion Car Battery Recycling Advisory Group, helping to put together a set of policy recommendations for California and other states to consider as they navigate the new industry of electric vehicle car batteries.

“The structure and logistics of this industry are still very much in formation,” said Daniel Zotos, senior manager for public affairs and advocacy at Redwood Materials. “That is a big reason why this pilot program was important and compelling. We found that unlike various longstanding e-waste frameworks, there is a strong demand for EV battery packs given their size and value. The key to this pilot was having the comprehensive recycling solution available for dealers and dismantlers.”

Another company, the American Lithium Energy Corp. (ALE), received $13.2 million in funding from the California Energy Commission to help ramp up the development of batteries to be used by EVs of all types.

“ALE is aiming to manufacture 1.5 million lithium-ion battery cells over the next 18 months, using this new funding,” said Jiang Fan, CEO of ALE. “Our new equipment and manufacturing process will include automation and allow for the development of up to 60 cells per minute.”

ALE participated in Hyundai’s annual Mobility Innovators Forum event in September 2022. The company has a flexible EV business model, including licensing and joint development, which could be attractive to foreign car companies, given requirements in the recently passed Inflation Reduction Act, which mandate that at least 40 percent of battery materials come from North America or a U.S. trading partner in order for the car to qualify for incentives. That percentage goes up to 100 percent from North America by 2029.

And about a year ago, Battery Resourcers (now Ascend Elements) announced it would invest $43 million in a battery recycling operation in Covington, Ga., to be operational by August 2022. The facility is expected to process 70,000 EV batteries a year, and return “battery grade lithium, cobalt, and nickel back into the battery supply chain,” according to a press release by the Georgia Department of Economic Development.

ALE is “actively collaborating with recycling companies,” said Fan, to create a comprehensive “cradle-to-grave approach” for all of the lithium-ion batteries the company produces.

“The proposed concept emphasizes the responsibility of manufacturers to take charge of the battery lifecycle, from the initial production of battery cells using sustainable materials to the end-of-life disposal of used batteries,” said Fan. “This approach aligns with the principles of a circular economy and reinforces ALE’s commitment to sustainable practices. We also plan to source California local lithium and raw materials for the production of our cells.”

Redwood’s work with Volvo, Volkswagen, Toyota and Ford has helped to develop best practices around the dismantling of the battery units, and the public policy needed to ensure the batteries are adequately recycled. The one-year pilot in California collected nearly 1,300 battery packs.

Automakers should have a plan in place to ensure their batteries are responsibly recycled, say Redwood and other officials in the battery industry. And the more streamlined this process, the better.

“Case in point of our pilot program was the industry wanted to and did collaborate effectively, and the value of these packs coupled with partnership between dismantlers and capable recyclers worked,” said Zotos.
Skip Descant writes about smart cities, the Internet of Things, transportation and other areas. He spent more than 12 years reporting for daily newspapers in Mississippi, Arkansas, Louisiana and California. He lives in downtown Yreka, Calif.