Battery recyclers eager to overcome ambiguity

The year 2023 marked an all-time high for EV battery production: global output of EV batteries grew 42% year-on-year. Delegates gathered at last week’s E-waste Expo also heard that Indonesia currently leads in lithium production.

There is generally sufficient material supply for compliance, reports Tim Hotz, analyst at Roland Berger. However, the ‘tight balance’ for nickel and lithium could create an undersupply, potentially leading to a premium on recycled materials in the near to medium future.

Catching up to China

While China has extensive production facilities, many are underutilised due to high feedstock prices and limited profitability, according to Hongqui Su, analyst at Shanghai Metals Market. She observes that Chinese recyclers are ‘betting on future battery demand’, particularly for energy storage. ‘They are hopeful for regulatory changes that could ease import restrictions on black mass.’

‘To use a soccer analogy, I think we are 5-0 behind China,’ observed Nils Steinbrecher, managing director of TES Sustainable Battery Solutions. ‘They have so much know-how when it comes to battery production and recyclers are using that to their advantage. We are still catching up.’

He went on to state: ‘We tend to make things to bureaucratic, too difficult. It will ultimately chase recyclers away from wanting to process material in Europe. The administration of sustainability will also kill us.’

Legal grey area

A persisting issue is the outdated material flow analysis, which often relies on data from as far back as 2016, laments Marius Kern from the Federal Institute for Geosciences in Germany. He called for shorter reporting periods and more granular data to better capture the dynamic nature of the industry.

The European Union is working on establishing waste categories for used lithium-ion batteries and black mass which Kern believes could streamline recycling efforts and clarify legal ambiguities. Currently, the absence of HS codes for these materials creates significant hurdles in international trade, often leaving recyclers in a ‘legal grey area’.