BREAKING EVEN OR AT BREAKING POINT?

BY HUBAN KASIMI

This Nevada-headquartered company recently qualified for a $2 billion government grant that will enable expansion in Charleston, South Carolina. The US Department of Energy (DOE) approved conditional funding under the Advanced Technology Vehicles Manufacturing loans program.

Redwood Materials is a strong case study proving that with the right strategies, battery-grade material recovery from otherwise defunct resources can work. The company has set its sights on 500GWh worth of anode and cathode foil material to power five million EVs per year by 2030. DOE’s capital infusion will help Redwood achieve that, starting with 100GWh, enough for a million EVs by 2025 in Phase II.

A year in review shows that the company recovered almost 500,000 pounds (226.8 megatonnes) of recycled material, including nickel, copper, and lithium, through 1,268 battery packs. This translates to a nearly 95 percent recovery rate after factoring in damaged components. Redwood’s existing operational capacity is 6GWh or the equivalent of 60,000 EVs. The company has also teamed up with Ford, Toyota, Volkswagen, and Volvo under its recycling initiative. These alliances have been vital for the company in supporting its milestones and future pathways.

Swedish company Stena Recycling will make headway in the European battery recycling scene with a 10,000-mt-per-year plant on Sweden’s west coast. The initial investment for the project is pegged at SEK 250 million ($23.8 million). Of this total, Stena received SEK 70.7 million from the Swedish Energy Agency in 2022 to begin construction. The new facility became operational by the end of March 2023 and has a recovery rate of 95 percent in battery-grade nickel and lithium.

Economies worldwide are beginning to recognize the segment’s potential with new projects about to break ground, or in various stages of testing. However, not all ventures have a smooth lift-off. There are a few that need a little more push than others, one case being U.K.-based Britishvolt, which as of February 2023 was taken over by Australia’s Recharge Industries.

Recharge will continue to use the Britishvolt brand name, but has changed lanes in terms of strategy. The focus will now be on manufacturing batteries for energy storage and high-performance sports cars. Recharge will still carry on with Britishvolt’s initial plan to construct a 38GWh plant in Blyth, Northumberland county. So what changed between 2022 and now?

Britishvolt’s collapse stemmed from a lack of technical expertise and limited funding. The company had set its sights on procuring nearly £4 billion ($4.9 billion) in investments, of which the initial land deal amounted to £2 billion.

Battery recycling is an expensive business, which requires millions, if not billions, per project. Although many industry experts foresee demand growing exponentially, a huge gap remains. Funding and knowledge-sharing are necessary, but so is government support.

Recyclers around the world have called for more legislative changes. These should cover battery pack handling and safety, allow for reduced transportation and energy costs, and strengthen global battery recycling supply chains.

Battery recycling is growing in the U.S., with plans to boost clean energy and e-mobility with a focus on nearshoring. If implemented, the right policies can create thousands of domestic jobs and set in motion significant EV infrastructure development.

HUBAN KASIMI is the editor for the Americas at Davis Index, covering the stainless steel and nickel markets in the U.S. Huban can be reached at huban.kasimi@ davisindex.com.