lithium ion battery recycling business plan

Starting a battery recycling business -complete guide

How to start a battery recycling business?

If you want to know how to start a battery recycling business you are at the right place! Battery is one of the most important e waste. E waste stands for electronics waste. There are different types of e waste; batteries are one of the major concerns for the environment. Electronic waste recycling and electronic waste disposal are two major aspects of waste management. There are different e waste recycling processes depending on the different e waste recycling plants. Let’s move further into blog and know about e waste management .

Recycling has become the need of the hour, thus making way for entrepreneurial opportunities. There are battery recycling businesses around, which directly contribute to attaining sustainability and saving our dearest mother earth. Battery recycling business stands as one of the most important parts of the recycling endeavour, in the current state. 

We all know recycling comes into action when we use a commodity to its maximum potential and then discard it. Since India is still transitioning towards EV’s (Electric Vehicles), the use of lithium-ion batteries will tend to increase. Thus battery recycling business will become a necessity. When enough batteries are available for recycling, starting the battery recycling business will take off as soon as there is enough material. Many batteries in devices and EVs have reached or are close to their shelf life.

At this point, you might be wondering how batteries can turn out to be a great option for business. And even if they are, how can one start a battery recycling business? Well, if you wanna know more, and about the battery recycling business, keep reading…..

Why battery recycling business? 

Battery recycling business aims to reduce the number of batteries ending up in landfills. Batteries comprise hazardous elements like cobalt, nickel, and lithium. As a result, it’s a concern for the environment ; when we disposed of batteries like household waste. It is important to conduct several assessments before starting a battery recycling business, even though energy storage may seem like a promising solution to environmental problems.

The challenges in shifting towards battery energy include environmental hazards, geopolitical risks, and limited sources. Thus, a well flourished or well-established battery reuse/recycling ecosystem can tap in as a great option for a circular economy. The government of India’s goal to shift to clean energy brings endless opportunities for energy storage in India.During the last few years, the comprehensive market for cells, especially lithium-ion batteries (LIBs), has grown exponentially, mostly in the automobile industry due to the use of LIBs in electric cars. The lithium-ion battery recycling market is expected to grow at a 35.0% CAGR between 2021 and 2030 due to rising lithium demand.

Different battery types

Before start with battery recycling business one must know the types of batteries and their recycling process. Let’s begin with the types of batteries. 

The batteries are mainly of primary and secondary types.

• Primary batteries : 

Primary batteries are used and throw kind, which means they cannot be recharged with electricity or reused like the secondary batteries. In primary batteries, the photochemical reaction cannot be reversed. Every year around 15 billion batteries are discarded worldwide, whose final destination is the landfill. 

Eg : button cells, AA cells, coin cells. 

• Secondary batteries:  

Also known as a rechargeable battery. Secondary batteries can be used to their maximum potential and yet recharged and used again. Secondary batteries compose of more than one photochemical cell. These batteries are slightly on the pricier end than those disposable batteries. 

Eg : Lithium-ion battery (Li-ion/LIB), Nickel cadmium battery (Ni-Ca), Lead acid battery(LAB), and Nickel metal hydride battery(NiMH).

Recycling Process 

To begin with the battery recycling business one must understand the recycling process. Let us briefly discuss the recycling processes of some of the most commonly used batteries! 

Commonly used batteries are:-

• Lithium-ion battery
• Lead acid battery
• Nickel-cadmium battery 
• Silver oxide batteries

Lithium-ion battery recycling :

Before beginning with the recycling of lithium-ion batteries, one must know what lithium-ion means. Lithium-ion batteries are composed of various chemicals like lithium cobalt, graphite, copper, nickel, steel, aluminum, and electrolyte.

Lithium-ion batteries have a variety of recycling processes i.e pyro metallurgical, hydrometallurgical, and direct recycling. For more information on this, connect with our lithium ion battery recycling consultants here .

The potential recycling process of lithium-ion batteries (LIBs)

Lead acid batteries :

Although lead-acid batteries have a low life span, they are highly rechargeable and recyclable. 90℅ of the components of a lead acid battery can be recovered by using the right recycling technique. Because of these reasons lead acid battery disposal industry has grown in volume. But this definitely does not mean that these batteries can be discarded in household bins. If the components of LAB leak out, after irresponsible disposal, they can cause severe damage to the environment. 

So what happens to these batteries once discarded at their rightful place? 

Once the batteries are collected by the recycling unit, they are sent to a hammer mill, where these batteries are literally crushed. The main components of these batteries are polypropylene (the plastic coating), sulphuric acid, and obviously as the name suggests (lead-acid batteries) lead. Sulphuric acid is converted to sodium sulphate, which is then used as a component in detergents and fertilizers. The lead and propylene are sent furthermore, where polypropylene and lead are separated. The plastic coating and recovered lead are used to make new batteries yet again. 

Nickel-cadmium batteries:  

Nickle cadmium batteries are rechargeable, and we use them in our remote controls, wall clocks, drills, and other small battery-operated devices. These are easy-to-carry batteries. These batteries have high power and low shelf life. Nickle cadmium batteries generally comprise nickel oxide hydroxide and metallic cadmium (electrode). Each battery comes with its unique battery makeup, thus it has a different recycling process. 

Nickel is recycled from the Ni-Cd (Nickel Cadmium) batteries by separating the components of the battery (nickel, acid, plastic) before the metallurgical process. The separation of the components of a Ni-Cd battery is similar to the crushing of the lead-acid battery. Ni-Cd battery can be alternatively recovered entirely through heat treatment in a furnace, with metals recovered at the end of the process. 

Silver oxide batteries: (Primary cell)

These are mostly a form of button cells, which are commonly found in calculators, wristwatches,  toys, etc. These batteries are usually small in size but have long storage and can function even at low temperatures. 

Silver oxide batteries generally have mercury as well, as an element,  which apparently makes their recycling mandatory. Silver oxide batteries are generally shredded during the recycling of heavy metal present in them. These shredded pieces are then sent to the tumbler reactor, after which chemical transformation and drying blending takes place. 

Thus reproducing new silver oxide battery cells. 

Rules and regulations for battery recycler

• The recycler must apply for registration with the Ministry of environment, forest, and climate change . 
• Submit annual returns report to respective state pollution control board by 30th June and 31st December Every year. 
• Submit all available records related to the receipts of the used batteries, sources (from where the batteries came in for recycling), quantity (amount/numbers of batteries that came in for recycling), and the metal yield ; to the respective state pollution control board. 
• Mandatorily mark “recycled” on the recovered metals by recycling. 
• The central recycling unit should be developed with a capacity of more than 10,000 tons/year to make appropriate pollution control. 
• One must ensure strict adherence to the terms and conditions of the registration. 
• Responsible disposal of used batteries means returning batteries only to authorized recyclers 
• Explaining hazards of heavy metals present in batteries. 

Documents required for registration to start a recycle business:

Compliance for battery recycling business is proposed by central pollution control board (CPCB).

Now let’s move on to the must-haves!

Firstly the recycler has to register himself/herself to start a battery recycling business with the Ministry of Environment, Forest and Climate Change. 

• Authorized pan card 
• Valid GST certificate 
• Lease/ proof of ownership of the site of a recycling 
• Detail flow chart of recycling 
• Copy of valid registration certificate with MoEFC 
• Copy of proof of installed capacity as per state pollution control board. 

Machines used for battery recycling: 

• Shredder : The system is employed to crush mostly used lithium-ion batteries to continue the process.
• Granulator : This machine shreds previous batteries into smaller items, creating them easier to move.
• Pyrolysis system: this system is a lot of of a filtration technique that removes diaphragms, electrolytes, organic materials, and alternative contaminants from the cells
• Separator : This machine separates the bimetal element from cells. 
• The tail gas treatment system :Tail gas refers to the air released after an industrial air, this system is used to treat the air effluent formed after the recycling process. 

Expenditure to step up a battery recycling plant: 

Figures mentioned here are rough and might vary depending on the area of the plant, manpower employed, and amount of batteries recycled per year. 

• Expense of the facility will minimally go up to 75,000/- to 85,000/- per month
• Drop off unit charges: 50,000/- to 60,000/-. 

Note: these can be cut off if you can collect it in the form of dumpster, which is comparatively less expensive. 

• Amount of machineries mentioned earlier: 5L to 8L.
• Labour charges: 300 to 400/day  
• Other utilities : 50,000 to 70,000 /month. 

There are various grants and schemes available for small-scale industries from the government, which can reduce the cost of setting up the plant even furthermore. 

Battery recycling companies in India:

Ever since the demand for batteries mentioned above increased,supply of batteries also need to be balanced. If the usage of the core material is not bought to a normalised limit, solving one problem might lead to another. So to make sure that most the batteries dont end up in landfills, certain companies have a step forward for recycling these lifeless batteries.

Some the battery recycling companies are mentioned below.

• TATA Chemicals Limited
• EXIMO recycling and many more.

Challenges in battery recycling:

As much as the battery recycling has its benefits, it comes with its own challenges. Let us briefly discuss the challenges involved in recycling.

• Evolving battery design

The changing designs of the battery cause a lot of problems during recycling. Batteries are now come in various enclosures: cylindrical, prismatic and pouch cells. Cylindrical cells come in various shapes. Prismatic cells come in rectangular and rigid. Pouch cells come in various sizes and do not have a standard size in the industry. These different sizes of batteries cause a considerable problem in disassembling the batteries and  during pre-treatment.

• Evolving battery materials

Constantly changing cathode and anode, due to mixing of 2 or more different types cathode/anode materials to obtain desirable performance from the batteries. Recycling these mixed materials is avoided due to their low added value.

• Economic benefits

Battery recycling mainly rely on the value obtained from cathode, acquired from the batteries. However, the cobalt in the cathode is intentionally degraded to new cathode material chemistries thus making LIB recycling more challenging economically.   

• Recycled Battery materials requirement

It becomes a task to convince the large manufacturers to accept the recycled battery materials into their production system. They need to be assured about the performance of the recycled material is equivalent to that of the virgin material used for production of the batteries.        

Wrapping up:

 It’s time to recharge yourself, and start with the battery recycling business!

The surge in battery production will eventually lead to more batteries ending up in landfills.  This is when battery recycling comes into action. As India is stirring vigorously towards EV, the battery recycling business is sure to flourish.Not only in India but globally the demand for LIB is expected to shoot up by CAGR 36℅ from 2021 to 2030 reaching 38.21 billion. Battery recycling will not only have economic benefits but also environmental benefits, preventing the leakage of heavy metals into the environment. Battery recycling plants will also enhance employment opportunities. With government aid settling up a recycling plant won’t be hefty as well, this surely increases your chance of trying your hand at battery recycling business. Connect with the best battery waste management consultants here .

Also Read about Advantages of recycling e waste

Faq’s .

Ques 1 : Why battery recycling? 

Answer : When there is demand for batteries, the battery production also increases. once these batteries are exploited to their potential they end up into the dumps. If these discarded batteries are not recycled, the heavy metal from these batteries seeps into the ground contaminating ground water and also the soil. Thus battery recycling is quite necessary. 

Ques 2 :  How to start a battery recycling business? 

Answer: Starting a battery recycling business is quite simple only if you have certain things in place. For starting a battery recycling business one must register with MoEFC and state pollution control board. For registration you may need id proof, proof of lease or ownership of the site, detail flowchart of recycling process, and a copy of filled registration form. You also need proper machinery and equipment, and labour. 

Ques 3 :  Can batteries be 100℅ recycled? 

Answer : Lead or lead acid batteries (LAB) have 95℅ of recyling rate among all the batteries. 

LAB recycling is comparatively cheaper, as recovered lead is again used in production of new batteries. 

Ques 4 :  What are the types of batteries? 

Answer : Batteries are mainly of 2 types viz primary batteries and secondary batteries. Secondary Batteries are the ones which can be recharged whereas primary batteries are non rechargeable. 

Ques 5 : What LIB and LAB stand for? 

Answer : LIB stands for lithium ion batteries, which are commonly used in electric vehicles 

LAB stands for lead acid batteriea which recyclable up to 95℅.

Ques 6 :Which machines are used in battery recycling? 

Answer : Machines and equipments like shredder, granulator, pyrolysis system, separator and tail gas system are used in battery recycling process. 

Ques 7 : Which are the commonly used primary batteries? 

Answer : Button cells like silver oxide are the most commonly used primary batteries. These Silver oxide cells are used in wrist watches, calculators, toys etc.

Prajakta Bhujbal is an enthusiastic BSc Environmental Science student. She is a passionate reader and willing to share her thoughts with you. Today, at a peak of climate change, she strongly believes that it's the responsibility of each and every one to show an honest gratitude towards our mother earth.Her blogs aim to teach people about how our environment can become more beautiful with innovative designs of ideas and technology.

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How to Start a Profitable Battery Recycling Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a battery recycling business plan., 3. develop a battery recycling brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for battery recycling., 6. open a business bank account and secure funding as needed., 7. set pricing for battery recycling services., 8. acquire battery recycling equipment and supplies., 9. obtain business insurance for battery recycling, if required., 10. begin marketing your battery recycling services., 11. expand your battery recycling business..

Market analysis is a critical first step when starting a battery recycling business, as it helps understand the demand for recycled materials, the existing competition, and potential customer segments. Here's how to conduct an effective market analysis:

• Identify the types of batteries in demand for recycling, such as automotive, consumer electronics, or industrial batteries, and research their end-of-life disposal rates.
• Analyze the current market size for recycled battery materials and forecast growth, taking into account factors like legislation, technological advancements, and environmental concerns.
• Assess the competitive landscape by identifying other battery recycling companies, their services, market share, and competitive advantage.
• Understand your customer base by segmenting the market into individual groups such as manufacturers, governmental bodies, and waste management companies, and explore their specific needs and willingness to pay for recycling services.
• Examine regulatory frameworks impacting battery recycling, including environmental regulations and international agreements that could affect market entry and operations.
• Explore potential partnerships with manufacturers, retailers, and waste management firms to understand opportunities for collaboration and material sourcing.
• Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to evaluate internal capabilities and external market conditions.

Are Battery Recycling businesses profitable?

Battery recycling businesses can be profitable depending on the size and scope of operations. Businesses that specialize in collecting and recycling batteries can benefit from cost savings associated with reducing waste and reusing materials. Additionally, battery recycling businesses can also generate revenue from the sale of recycled materials.

Embarking on a journey to establish a battery recycling business requires a well-structured plan that outlines the roadmap to success. A comprehensive business plan should not only address the environmental benefits but also ensure profitability and operational efficiency. Here are some critical components to consider when drafting your business plan:

• Analyze the market to understand the demand for recycled battery materials and identify your potential customers.
• Detail the types of batteries you will recycle, such as automotive, industrial, or consumer electronics batteries.
• Outline the processes involved in collection, transportation, sorting, and recycling of batteries.
• Assess the regulatory requirements for battery recycling and how your business will comply with them.
• Develop a financial plan including startup costs, operational expenses, revenue projections, and funding strategies.
• Consider the location and facilities needed for your operations, ensuring they are suitable for handling hazardous materials.
• Describe your marketing and sales strategies to attract customers and establish partnerships.
• Include a risk assessment to identify potential challenges and devise mitigation strategies.

How does a Battery Recycling business make money?

Battery recycling businesses make money by collecting, sorting, and reselling batteries and their component parts. They often charge fees for collection and processing, and then the reclaimed materials can be sold to companies that produce new products. They also generate revenue by selling some of the remanufactured batteries and components.

Creating a strong brand for your battery recycling business is crucial for standing out in the market and communicating your commitment to sustainability. Your brand should reflect your company's values and resonate with your target audience. Here are key steps to guide you in developing a compelling battery recycling brand:

• Define Your Brand Essence: Determine the core values and mission of your brand. What makes your battery recycling business unique? Is it your cutting-edge technology, your commitment to environmental stewardship, or your community engagement?
• Design a Memorable Logo: Your logo should be simple, recognizable, and convey the environmental focus of your business. Consider using colors and imagery that are associated with eco-friendliness and recycling.
• Establish a Brand Voice: How you communicate is as important as what you communicate. Develop a consistent brand voice that reflects your brand personality – whether it's professional, friendly, informative, or inspiring.
• Create a Tagline: A catchy tagline can help summarize your business's purpose and benefits. It should be short, memorable, and encapsulate the essence of your brand.
• Develop Branding Materials: Apply your brand consistently across all materials, including business cards, brochures, your website, and social media platforms. Consistency in branding builds recognition and trust with customers.
• Engage with Your Audience: Build brand awareness and loyalty by engaging with your community and potential customers through social media, educational content, and community events focused on recycling and sustainability.

How to come up with a name for your Battery Recycling business?

Brainstorming a name for a battery recycling business can be difficult. To come up with a creative name, consider the mission and values of your business and how you want to be perceived. Think of words associated with recycling, batteries, and energy, then play around with combinations and see what resonates. Finally, run the name ideas by friends, family, and colleagues to get their feedback.

Starting a battery recycling business requires not only an understanding of the environmental protocols but also ensuring the legal structure of your enterprise is solidly in place. Formalizing your business registration is a critical step to legitimize your operations and protect your interests. Below are the key actions you should take:

• Choose a Business Structure: Decide whether an LLC, corporation, or partnership best suits your needs. Each has different implications for liability, taxes, and ongoing requirements.
• Register Your Business Name: Select a unique name and check its availability. Then, register it with the appropriate state agency to protect your brand.
• Obtain Necessary Licenses and Permits: Research and secure all the required local, state, and federal licenses and permits for operating a battery recycling business. This often includes environmental permits and waste transport licenses.
• Apply for an EIN: Acquire an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan on hiring employees.
• Register for State Taxes: Depending on your location, register for state taxes that may include sales tax, unemployment insurance tax, and others relevant to your business activities.
• File Your Articles of Incorporation or Organization: Submit the necessary documents to your state's business filing agency to officially form your business entity.

Resources to help get you started:

Explore key resources designed to empower battery recycling entrepreneurs with in-depth market analysis, operational excellence tips, and strategies for scalable success:

• International Energy Agency (IEA) Reports: Offers comprehensive global market analysis and forecasts for battery recycling trends. https://www.iea.org/reports
• Battery Recycling World: A specialized newsletter providing the latest news, policy developments, and innovations in battery recycling. http://www.batteryrecyclingworld.com
• The Battery Recycling Market Research Report by Market Research Future: Delivers insights into future market trends, challenges, and opportunities in the battery recycling sector. https://www.marketresearchfuture.com/reports/battery-recycling-market
• Resource Recycling Magazine: Offers insights into the trends in recycling technologies, including batteries, with advice from industry leaders. https://resource-recycling.com
• Sustainable Materials Management (SMM) Web Academy Webinar Series: Provides educational webinars focusing on best practices and innovations in materials management, including battery recycling. https://www.epa.gov/smm/sustainable-materials-management-smm-web-academy-webinar-series
• Journal of Power Sources: Academic journal offering peer-reviewed research articles on the science, technology, and applications related to batteries, supercapacitors, and recycling processes. https://www.journals.elsevier.com/journal-of-power-sources

Starting a battery recycling business requires adherence to various environmental regulations and safety standards. It's crucial to obtain all necessary licenses and permits to operate legally and responsibly. Here's a guide to help you navigate this step:

• Research federal, state, and local regulations: Different jurisdictions have specific requirements for recycling businesses, especially those handling hazardous materials like batteries.
• Environmental permits: Apply for permits related to air emissions, wastewater discharge, and waste handling from the Environmental Protection Agency (EPA) or your state's environmental agency.
• Business licenses: Obtain a general business license from your city or county clerk's office.
• Specialized battery recycling permits: Some areas require a specific permit for battery recycling operations due to the hazardous nature of the materials.
• Transportation permits: If your business involves the transportation of hazardous materials, you may need to secure a permit from the Department of Transportation (DOT).
• Health and safety compliance: Ensure compliance with the Occupational Safety and Health Administration (OSHA) standards to protect your workers from potential hazards.
• Zoning and land use permits: Verify that your facility complies with local zoning laws and obtain any necessary land use permits.

What licenses and permits are needed to run a battery recycling business?

The exact licenses and permits required to operate a battery recycling business will vary depending on the location, as well as the type of batteries being recycled. Generally, some common permits and licenses includes a General Business License, as well as Environmental, Industrial and/or Hazardous Waste Permits. In addition, facilities may also need certain licenses or permits related to the storage and transportation of batteries.

Opening a business bank account and securing funding are crucial steps in establishing the financial foundation for your battery recycling business. These steps not only provide a means to manage your finances effectively but also enable you to cover startup costs and operational expenses. Here's how to get started:

• Choose a bank: Research and compare banks to find one that offers business accounts with favorable fees, services, and lending options.
• Prepare documentation: Gather required documents such as your business registration, EIN, ownership agreements, and identification to open a business bank account.
• Understand your funding needs: Estimate startup costs, including equipment, premises, licenses, and working capital to know how much funding you'll need.
• Explore funding options: Consider traditional loans, investors, grants, crowdfunding, and industry-specific financing options tailored to green businesses or recycling initiatives.
• Prepare a solid business plan: A well-structured business plan is essential when applying for funding as it shows potential lenders or investors the viability and potential profitability of your business.
• Consider credit options: Look into business credit cards or lines of credit for flexible short-term financing options to manage cash flow.

Setting the right pricing for your battery recycling services is crucial for the success of your business. It will ensure that you cover your costs, make a profit, and provide value to your customers. Consider the following factors when determining your pricing strategy:

• Costs: Calculate all your operational costs, including collection, transportation, processing, and any regulatory fees. Ensure your prices cover these expenses.
• Market rates: Research what competitors are charging for similar services. Your prices should be competitive but also reflect the quality and value of your service.
• Value-based pricing: If you offer additional benefits such as environmental reporting or certification, consider incorporating these into your pricing.
• Volume discounts: Offer reduced rates for larger quantities of batteries to attract bigger clients and encourage more recycling.
• Flexibility: Have flexible pricing plans that can accommodate different customer needs, such as one-time pickups or ongoing service contracts.
• Regulations: Stay updated with any government incentives or regulations that might affect pricing, such as subsidies for recycling initiatives.
• Profit margins: Set a reasonable profit margin to ensure the sustainability and growth of your business.

What does it cost to start a Battery Recycling business?

Initiating a battery recycling business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $96200 for launching such an business. Please note, not all of these costs may be necessary to start up your battery recycling business.

Starting a battery recycling business requires careful planning and investment in the right equipment and supplies. This step is crucial to ensure the safe and efficient processing of batteries. Below is a list of essential equipment and supplies you will need to acquire:

• Battery Disassembly Station: Obtain a workstation where batteries can be safely taken apart.
• Personal Protective Equipment (PPE): Stock up on gloves, goggles, and protective clothing to safeguard against hazardous materials.
• Spill Containment Kits: Be prepared for potential leaks or spills with appropriate containment tools.
• Material Handling Equipment: Invest in forklifts, pallet jacks, and conveyor belts to move batteries around the facility.
• Hydrometallurgical or Pyrometallurgical Systems: Choose a processing system to extract valuable metals from the batteries.
• Acid Neutralization System: Ensure you have a system for neutralizing battery acids safely.
• Environmental Control Units: Install air filtration and ventilation systems to maintain a safe working environment.
• Recycling Software: Acquire software for tracking inventory, processing data, and complying with regulations.
• Transportation Equipment: Secure appropriate vehicles for transporting batteries to and from your facility.

List of Software, Tools and Supplies Needed to Start a Battery Recycling Business:

• Battery recycling equipment
• Collection bins
• Safety equipment (e.g. goggles, gloves, boots, etc.)
• Chemical storage containers
• Computer and software
• Inventory management system
• Industrial weighing scales
• Transportation vehicles
• Packaging materials
• Advertising materials

Securing the right insurance is crucial for safeguarding your battery recycling business against potential risks and liabilities. This step will help protect your assets, employees, and clients as you manage the intricacies of recycling potentially hazardous materials. Here's how to obtain the necessary business insurance:

• Identify Potential Risks: Assess the specific risks associated with battery recycling, such as environmental hazards, workplace accidents, and liability for improper disposal.
• Consult with Insurance Agents: Reach out to insurance agents who specialize in industrial or environmental businesses to get expert advice tailored to your needs.
• Compare Quotes: Obtain quotes from multiple insurance providers to compare coverage options and prices, ensuring you find the best fit for your business.
• Consider Comprehensive Coverage: Opt for a comprehensive insurance plan that includes general liability, workers' compensation, environmental liability, and property insurance.
• Review Policy Details: Carefully examine the terms and coverage limits of each policy to understand what is included and any exclusions that may apply.
• Stay Compliant: Ensure that your chosen insurance policies meet all regulatory requirements for battery recycling operations in your area.
• Maintain Records: Keep all insurance documents and proof of coverage easily accessible for inspections, renewals, and in case of any claims.

As you launch your battery recycling business, marketing is a crucial step to increase visibility and attract customers. You need an effective strategy that communicates the benefits of your services and emphasizes the importance of recycling for the environment. Here are some targeted strategies to market your battery recycling services:

• Develop a Strong Online Presence: Create a professional website and active social media profiles to share information about the importance of battery recycling and the specifics of your services.
• Community Engagement: Participate in local events and workshops to educate the public about battery recycling and promote your services face-to-face.
• Partner with Retailers: Collaborate with electronic stores and auto parts shops to set up battery collection points and co-marketing opportunities.
• Offer Incentives: Encourage people to recycle by providing discounts or services in exchange for their used batteries.
• Content Marketing: Publish articles, blog posts, and videos that highlight the environmental impact of batteries and how your recycling services address this issue.
• Public Relations: Generate media coverage by pitching stories about your recycling initiatives and community contributions to local newspapers, radio stations, and TV channels.

Expanding your battery recycling business can significantly increase its reach and profitability. As you look to grow, consider the following strategies to ensure a successful scale-up of your operations.

• Invest in Technology: Upgrade to more advanced recycling technologies to increase processing capacity and efficiency.
• Widen Collection Networks: Establish more collection points and partnerships with retailers, municipalities, and waste management companies.
• Enhance Processing Capabilities: Expand your facilities to handle different types of batteries and increase throughput.
• Diversify Services: Offer additional services such as battery refurbishing or materials recovery to attract a broader customer base.
• Explore New Markets: Research and enter new geographic regions or industries that are underserved in battery recycling.
• Strengthen Compliance: Stay ahead of environmental regulations to ensure your expanded operations remain compliant.
• Increase Brand Awareness: Invest in marketing and outreach to build your brand and educate the public about the importance of battery recycling.
• Secure Funding: Look for grants, investors, or loans that can provide the capital needed for expansion.

How To Start a Battery Recycling Business In 10 Steps

Starting a battery recycling business can be a lucrative endeavor, but it takes some preparation and effort to get started.

Here are the 10 steps you can take to get started on building your very own battery recycling business.

10 Steps to Launching a New Battery Recycling Business

1. choose your type of battery recycling business.

The first step in launching a battery recycling business is to identify the type of battery recycling business you want to launch. You might choose from the following types among others:

• Primary battery recycling businesses gather and recycle all types of batteries, including lead acid, nickel-cadmium, nickel-metal-hydride, and lithium-ion.
• Secondary battery recycling businesses only recycle lead acid batteries .

2. Name Your Battery Recycling Business

Give your battery recycling business an identity so people will think of it as a well-known and respected brand. You can take the name of your battery recycling business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your battery recycling business is to make it sound appealing and trustworthy so customers will want to use your services.

3. Determine Your Battery Recycling Business Model

There are several possible types of business models for a battery recycling business including:

• Pick up and drop off services : You can offer to pick up batteries from businesses and residential areas and then either recycle them on-site or transport them to a recycling facility.
• Recycling center: You can open a battery recycling center where people can bring in their batteries to be recycled.
• Online recycling : You can develop an online battery recycling service where people can mail in their batteries to be recycled.

No matter which model you choose, make sure that it aligns with your business goals and the services you offer.

Read more about choosing the right business model for your battery recycling business.

4. Choose a Legal Form for Your Business

By incorporating your battery recycling business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your battery recycling business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common battery recycling business structures .

5. Write a Battery Recycling Business Plan

All battery recycling business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

When developing your battery recycling business plan and strategy, you should think about the following questions your customers might have:

• What products or services does your battery recycling business offer?
• What type of batteries can I recycle?
• Where can I recycle my batteries?
• How much does it cost to recycle batteries?
• What are the environmental benefits of recycling batteries?

Answering these questions in your business plan will give you a good foundation for developing marketing and sales strategies to attract customers to your battery recycling business.

Read our article about how to write a battery recycling business plan .

6. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your battery recycling business.

For example, you will need to get a Hazardous Materials Transportation license from the Department of Transportation if you plan to transport recycled batteries. You will also need to check with your local government to see if there are any zoning regulations or permits you need to obtain before opening your battery recycling business.

You must also register your battery recycling business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.

Read our article about obtaining the proper battery recycling business licenses .

7. Determine Your Budget & Apply for Funding as Needed

In developing your battery recycling business plan, you will figure out how much funding you need to start and grow your business.

If you have your own funds to invest in your battery recycling business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your battery recycling business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.

Read our article about the costs associated with starting a battery recycling business to help you determine if funding is needed. 

Read our article about how to fund your battery recycling business . 

8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your battery recycling business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues. 

You may also want to invest in a lead management system to track potential customers, as well as a customer relationship management (CRM) system to manage your interactions with current and past customers.

When it comes to recycling batteries, you will need a battery collection strategy and a battery sorting system. You may also want to consider investing in a depollution system to clean the batteries before you recycle them.

9. Market Your Battery Recycling Business to Potential Customers

Before you start selling your services , you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, and Twitter. Also consider networking with other people in the battery recycling industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Battery recycling businesses should consider the following promotional strategies for which you should start getting prepared:

• Develop a comprehensive marketing plan that includes traditional and digital marketing tactics.
• Create a catchy slogan or motto for your battery recycling business that will stick in people’s minds.
• Develop interesting and informative content about battery recycling for your website and blog.
• Create social media profiles for your battery recycling business and actively post interesting content.
• Develop relationships with other businesses in the battery recycling industry and cross-promote each other’s services.
• Attend trade shows, conventions, and other events related to battery recycling so you can network with potential customers and partners.
• Sponsor local events or charity drives that are related to environmental causes to gain goodwill in the community.

Read our article about how to market your battery recycling business for more tips.

10. Get New Customers & Grow Your Business

When you promote your services , you’ll start to get interest from potential customers . 

Make sure you’re ready to serve these customers . Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your battery recycling business.

Read our article about how to effectively grow your battery recycling business to learn more.

Starting a Battery Recycling Business FAQs

Why start a battery recycling business.

There are a few reasons why you might want to start a battery recycling business:

• To help the environment: Recycling batteries reduces the amount of waste that goes into landfills and helps conserve natural resources.
• To make money : There is a growing demand for recycled batteries, so there is good potential for profitability in this industry.
• To make a difference : You can feel good about running a business that is helping to make a difference in the world.

What is Needed to Start a Successful Battery Recycling Business?

To start a successful battery recycling business, you will need the following:

• A detailed business plan
• The right location
• The necessary permits and licenses
• The right technology and equipment
• A solid marketing plan
• The right team of employees
• A passion for helping the environment

How Can I Start a Battery Recycling Business From Home?

To start a battery recycling business from home, you’ll need to establish a workspace and home office. Then, get the appropriate technology and equipment, and the required  permits and licenses. After that, you can start marketing your business to potential customers.

How Can I Start a Battery Recycling Business Online?

You can start a battery recycling business online by developing a website. You can use your  website to promote your battery recycling services and attract new customers. You will also need to create a detailed business plan, research the local market for battery recycling businesses, choose the right location for your business, obtain the necessary permits and licenses, invest in the right technology and equipment, train your team of employees, and launch your website.

What are Some Tips for Starting a Battery Recycling Business?

Here are some tips for starting a battery recycling business:

• Research the market : Before you start your business, it's important to do your research and develop a detailed business plan. This will help you understand the industry, the local market, and what you need to do to be successful.
• Choose the right location : The location of your business is important for two reasons: it needs to be convenient for customers to drop off their batteries, and it needs to be in an area where there is a demand for recycling services.
• Obtain the necessary permits and licenses : Before you can start operating your business, you will need to obtain the necessary permits and licenses from your local government.
• Invest in the right technology and equipment: In order to recycle batteries effectively, you will need to invest in the right technology and equipment. This includes battery separators, chargers, and other specialized equipment.
• Train your team of employees : Once you have the right technology and equipment, you will need to train your team of employees on how to use it. This will ensure that they are able to recycle batteries safely and efficiently.
• Launch your website : You can use your website to promote your battery recycling services and attract new customers. Be sure to include a clear call-to-action on your website so that potential customers know how to contact you.
• Market your business : Once you have launched your website, it's time to start marketing your business. You can do this by creating a marketing plan and implementing various marketing strategies. These might include online advertising, direct mail, and public relations.

Where Can I Find a Simple Checklist for Starting a Battery Recycling Business?

A simple checklist to use when starting a battery recycling business is as follows:

• Choose Your Type of Battery Recycling Firm : This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
• Name Your Battery Recycling Business : This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
• Choose a Legal Form for Your Business : Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
• Determine Your Battery Recycling Business Model : Determine how your business will make money. Will you sell products, services, or a combination of both?
• Write a Battery Recycling Business Plan : Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow .
• Apply for the Necessary Permits and Licenses : In most locations you will be required to apply for a business license and/or permits before you can begin operations.
• Determine Your Budget & Apply for Funding as Needed : You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
• Get the Technology & Software Needed to Run Your Business Efficiently : You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
• Market Your Battery Recycling Business to Potential Customers : A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need. 
• Get Customers & Grow Your Business : Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services . 

Starting a battery recycling business can be a great way to make a difference in your community and help the environment. It’s important to research the market and plan carefully before starting out, but with the right tools and resources you can be on your way to success. Follow these tips to get started and grow your business.

Lithium-ion battery

Li-ion batteries.

• Battery Recycling

The world’s largest battery recycler is opening its first US li-ion recycling factory

Battery recycling giant Ecobat is building its first lithium-ion battery recycling facility in North America – its third li-ion battery recycling facility globally.

It’s a huge international company – it’s got sites in Europe, southern Africa, and the US. It has 12 secondary smelting facilities, a primary smelting facility, three lithium-focused facilities, a collection truck fleet, and 65,000 battery collection points.

Ecobat CEO Marcus Randolph said:

We are thrilled to grow our global lithium-ion battery recycling footprint with a new facility in Casa Grande, Arizona. This facility, like our lithium-ion battery recycling facilities in Germany and the United Kingdom, represents a significant milestone in Ecobat’s strategy to grow our lithium-ion battery recycling business to a scale, similar to our world-leading lead battery recycling business.

The new facility in Casa Grande, Arizona, will initially produce around 10,000 tons of recycled material annually, and there are plans to expand capacity to meet the growing demand in the shift to electrification.

Ecobat Casa Grande will repurpose end-of-life li-ion batteries through diagnostics, sorting, shredding, and material separation. The company says it will launch in the third quarter of this year.

The new factory will be located a mile from the existing Ecobat Resources Arizona facility, which has been making anodes for 15 years.

In 2021, Ecobat’s lead battery recycling business fully recycled 70 million car batteries.

Read more: Here’s why this small battery recycling tech firm just got a $2M DOE grant

Photo: Ecobat

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Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at [email protected]. Check out her personal blog.

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UVA Engineering–Darden Team Wins $30,000 for Lithium-Ion Battery Recycling Business Plan

Updated April 11, 2023

The University of Virginia’s team ReLi — chemical engineering Ph.D. students Caroline Morin and Charles Leroux and Darden School of Business MBA candidates Gregory Pilchak and Aman Dar — won second place in the American-Made EnergyTech University Prize, or EnergyTech UP. The group earned $30,000 for their business plan to recycle lithium-ion batteries, reuse critical materials and reduce America’s reliance on foreign suppliers.

As previously reported (see below), EnergyTech UP challenges multidisciplinary student teams to develop a business plan using high-potential energy technologies. The idea is to find ways to commercialize technologies that already exist, including those developed in National Laboratories, and bring them into the mainstream, according to a news release announcing the 2023 winners.

Published March 14, 2023

UVA Engineering–Darden Team’s Lithium-Ion Battery Recycling Plan Advances to the National Round of a U.S. Energy Department Competition

Armed with a business plan to recycle lithium-ion batteries, reuse critical materials and reduce America’s reliance on foreign suppliers, a team of University of Virginia graduate students has won the regional round of the American-Made EnergyTech University Prize, or EnergyTech UP, to advance to the final national event in April.

EnergyTech UP is a collegiate competition sponsored by the Office of Technology Transitions at the U.S. Department of Energy. The program challenges multidisciplinary student teams to develop a business plan using “high-potential energy technologies,” including those developed in a DOE National Laboratory, according to the EnergyTech UP website .

The UVA team’s proposed business, Redox-Targeting Based Lithium-Ion Battery Recycling — or ReLi for short — aims to recycle all forms of lithium-ion batteries to recover critical materials and reintroduce them back into the supply chain, said the team’s captain Caroline Morin, a Ph.D. student in associate professor Geoffrey Geise’s research group in the Department of Chemical Engineering at the School of Engineering and Applied Science.

Morin’s teammates are Darden School of Business MBA candidates Gregory Pilchak and Aman Dar and fellow chemical engineering Ph.D. student Charles Leroux, who works in Geise’s polymer membrane lab and associate professor Gary Koenig’s research group specializing in battery electrode materials.

ReLi’s plan is premised on the accelerating demand for lithium batteries — which the team calculates at a compound annual growth rate of 12% with an expected market value of $1.9 trillion in 2031, translating to a five-fold increase in demand for critical metals used to make the batteries. Today, the United States depends on foreign suppliers for those materials.

At the same time, “11 million metric tons of lithium batteries are expected to reach end of life by 2030,” Morin said.

“The team is addressing a huge issue,” Koenig said. “When large batteries from electric vehicles and utility storage reach end of life, we will need processes to recover the elements they contain — such as lithium, cobalt and copper — economically and efficiently. This plan will help reduce the potential environmental impacts of these batteries and provide a domestically sourced supply chain.”

In the competition’s first round, Team ReLi won $3,000 in the South Atlantic region for its business plan, qualifying the team to move on to the competition’s next phase, the National Pitch Event at the Energy Thought Summit in Austin, Texas, next month. There, they will be vying for a prize worth $50,000, $30,000 or $20,000.

In the regional round, the UVA team also was named a finalist for the National Lab Technology IP Licensing Bonus Prize for its use of National Lab-developed technologies in its business plan. The National Lab Bonus Prize winner, along with bonus prizes in other categories, was announced on March 7.

An Opportunity to Get Battery Technology Right

ReLi’s plan proposes a system that collects spent batteries and, using processes developed at Oak Ridge National Laboratory and Idaho National Laboratory, breaks down and recovers the elements for resale as battery-grade raw materials. These technologies operate with low energy consumption and reduced chemical waste compared with other battery recycling methods, Morin said.

In addition to creating a U.S. supply of raw materials and preventing toxic battery waste from entering the environment, the ReLi plan seeks reduced reliance on mining; lower price points for electric vehicles, which would mean greater accessibility; and new jobs in communities with retired coal plants.

ReLi’s whole-picture approach reflects a choice facing the nation — a kind of do-over moment.

“Since the discovery of petroleum reserves in the United States, domestic energy demand has increased in correlation with economic growth,” Leroux said. “In almost every material aspect, our country is heavily reliant on fossil fuels. As our demand continued to increase, the life cycle of fossil fuels and its effect on our environment was not taken into account.

“Now we have the opportunity to consider the entire life cycle of batteries as we continue to increase our dependence on electrical energy for technological growth.”

Geise and Koenig are proud of the team members, who, they say, seized the initiative and ran with the National Lab technologies. And they’re taking full advantage of the EnergyTech UP program, which provides resources and mentorship to help them succeed.

“We’re excited to see how their analysis and plan develops,” Geise said. “The students are developing skills important to translating their research out of the lab and in quantitatively assessing technology and business opportunities.”

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Battery 2030: Resilient, sustainable, and circular

This work is independent, reflects the views of the authors, and has not been commissioned by any business, government, or other institution.

Global demand for batteries is increasing, driven largely by the imperative to reduce climate change through electrification of mobility and the broader energy transition. Just as analysts tend to underestimate the amount of energy generated from renewable sources, battery demand forecasts typically underestimate the market size and are regularly corrected upwards . In an earlier publication, a joint 2019 report by McKinsey and the Global Battery Alliance (GBA) , and Systemiq, A vision for a sustainable battery value chain in 2030 , we projected a market size of 2.6 TWh and yearly growth of 25 percent by 2030. But a 2022 analysis by the McKinsey Battery Insights team projects that the entire lithium-ion (Li-ion) battery chain, from mining through recycling, could grow by over 30 percent annually from 2022 to 2030, when it would reach a value of more than $400 billion and a market size of 4.7 TWh. 1 These estimates are based on recent data for Li-ion batteries for electric mobility, battery electric storage systems (BESS), and consumer goods.

About the authors

This article is a collaborative effort by McKinsey's Battery Accelerator Team  in cooperation with the Global Battery Alliance and its members. The authors include Jakob Fleischmann, Mikael Hanicke , Evan Horetsky , Dina Ibrahim, Sören Jautelat , Martin Linder , Patrick Schaufuss , Lukas Torscht, and Alexandre van de Rijt.

Although battery growth will confer multiple environmental and social benefits, many challenges lie ahead. To avoid shortages, battery manufacturers must secure a steady supply of both raw material and equipment. They must also channel their investment to the right areas and execute large-scale industrialization efficiently. And rather than just greenwashing—making half-hearted efforts to appear environmentally friendly—companies must commit to extensive decarbonization and true sustainability.

Faced with these imperatives, battery manufacturers should play offense, not defense, when it comes to green initiatives. This article describes how the industry can become sustainable, circular, and resilient along the entire value chain through a combination of collaborative actions, standardized processes and regulations, and greater data transparency. By emphasizing sustainability, leading battery players will differentiate themselves from the competition and generate value while simultaneously protecting the environment. The strategies and goals presented here are aligned with both McKinsey’s battery supply chain vision and the GBA’s principles .

Global market outlook for 2030

Global demand for Li-ion batteries is expected to soar over the next decade, with the number of GWh required increasing from about 700 GWh in 2022 to around 4.7 TWh by 2030 (Exhibit 1). Batteries for mobility applications , such as electric vehicles (EVs), will account for the vast bulk of demand in 2030—about 4,300 GWh; an unsurprising trend seeing that mobility is growing rapidly . This is largely driven by three major drivers:

• A regulatory shift toward sustainability, which includes new net-zero targets and guidelines, including Europe’s “Fit for 55” program, the US Inflation Reduction Act, the 2035 ban of internal combustion engine (ICE) vehicles in the EU, and India’s Faster Adoption and Manufacture of Hybrid and Electric Vehicles Scheme.
• Greater customer adoption rates and increased consumer demand for greener technologies (up to 90 percent of total passenger car sales will involve EVs in selected countries by 2030).
• Announcements by 13 of the top 15 OEMs to ban ICE vehicles and achieve new emission-reduction targets.

Battery energy storage systems (BESS) will have a CAGR of 30 percent, and the GWh required to power these applications in 2030 will be comparable to the GWh needed for all applications today.

China could account for 45 percent of total Li-ion demand in 2025 and 40 percent in 2030—most battery-chain segments are already mature in that country. Nevertheless, growth is expected to be highest globally in the EU and the United States, driven by recent regulatory changes, as well as a general trend toward localization of supply chains. In total, at least 120 to 150 new battery factories will need to be built between now and 2030 globally.

In line with the surging demand for Li-ion batteries across industries, we project that revenues along the entire value chain will increase 5-fold, from about $85 billion in 2022 to over $400 billion in 2030 (Exhibit 2). Active materials and cell manufacturing may have the largest revenue pools. Mining is not the only option for sourcing battery materials, since recycling is also an option. Although the recycling segment is expected to be relatively small in 2030, it is projected to grow more than three-fold in the following decade, when more batteries reach their end-of-life.

Companies in the EU and US are among those that have announced plans for new mining, refining, and cell production projects to help meet demand, such as the creation or expansion of battery factories. Many European and US companies are also exploring new business models for the recycling segment. Together, these activities could help localize battery supply chains.

Today’s value chain challenges

The global battery value chain, like others within industrial manufacturing, faces significant environmental, social, and governance (ESG) challenges (Exhibit 3). Together with GBA members representing the entire battery value chain, McKinsey has identified 21 risks along ESG dimensions:

• Environmental: The extraction and refining of raw materials, as well as cell production, can have severe environmental effects, such as land degradation, biodiversity loss, creation of hazardous waste, or contamination of water, soil, and air. Unprofessional or even illegal battery disposal can cause severe toxic pollution. This is a problem within today’s lead-acid battery value chain.
• Social: Unless strictly managed, operations across the battery value chain could have unfavorable effects on regional communities through violations of labor laws, child and forced labor, and indigenous rights, especially in emerging markets.
• Governance: Businesses in the battery value chain may encounter conflicts of interest or other companies with subpar management practices. To meet longstanding expectations for ethical businesses, companies must avoid financial situations involving corruption, bribery, funding armed conflicts, and tax evasion.

Industry perspectives on sustainability

Here are what some battery industry leaders and experts have to say about sustainability:

“Our Battery 2030 report, produced by McKinsey together with the Global Battery Alliance, reveals the true extent of global battery demand – and the need for far greater transparency and sustainability across the entire value chain. The lithium-ion battery value chain is set to grow by over 30 percent annually from 2022-2030, in line with the rapid uptake of electric vehicles and other clean energy technologies. The scaling of the value chain calls for a dramatic increase in the production, refining and recycling of key minerals, but more importantly, it must take place with ESG considerations at front and center. It is time we transition to a more circular, sustainable, and just value chain that protects our planet’s biodiversity, resources, and ensures that human rights are respected globally. We can achieve the sustainable future we all desire, but only if we work together for it.” — Benedikt Sobotka, CEO, Eurasian Resources Group

“The transformation towards battery electric mobility is a gigantic challenge for industrial structures and workers. The social impact will depend on the application of a just transition concept: investment in skills, creation of new and decent jobs, social dialogue/collective bargaining and a more balanced value creation model between the Global North and the Global South.” — Atle Høie, IndustriALL General Secretary

“Umicore is a proud founding member of the Global Battery Alliance and a strong supporter of its Battery Passport project, as they align with our ambition to roll out a decarbonized and responsible battery supply chain. Acceleration in EV sales will go hand in hand with unprecedented growth in the production of rechargeable batteries that are sustainably sourced, manufactured, used and recycled. By sharing our longstanding industry expertise in battery materials and battery recycling through partnerships like the GBA, we aim to raise the bar to reach true clean mobility.” — Mathias Miedreich, CEO of Umicore

“When we published our first GBA Vision for Sustainable Batteries 2030, with McKinsey in 2019, we understood and laid out the dramatic shift in the demand for batteries, critical minerals and assurances of sustainable and ethical practices that would be required. What we did not predict was how the scale and urgency of that demand would escalate so quickly and at a pace rarely seen in history. This updated report brings essential and timely new data to inform the actions needed going forward. Given this shift and pace, now more than ever, our work as the Global Battery Alliance, and the importance of collaborative, multi-stakeholder action has never been more relevant or needed.” — Gillian Davidson, Sustainability Advisor, Eurasian Resources Group, GBA Chair of the Board of Directors

“The members of the Global Battery Alliance are committed to achieving sustainable, circular, and responsible battery value chains by 2030. The results of the McKinsey analysis underline both the continued relevance and highlight the sense of urgency with which we need to achieve this vision. The GBA battery passport is a key tool to enhance transparency in battery value chains and enhance sustainability impacts including the progressive reduction of greenhouse gas emissions within battery value chains.” — Inga Petersen, Executive Director, Global Battery Alliance

“Three years ago McKinsey supported GBA and demonstrated the importance of a pre competitive transparent battery value chain to drive the energy transformation, today’s updated report magnifies not only the importance but also the magnitude and urgency.” — Guy Éthier, Past Chairman of the Board of Directors, Global Battery Alliance

To conduct business in a socially and ecologically responsible way, it is crucial for stakeholders in the battery value chain to consider and address these ESG risks. (See sidebar, “Industry perspectives on sustainability” for more information on priorities). Success will likely depend on deploying sufficient resources as well as greater transparency and better mitigation measures—regulations and early planning could help ensure that companies alleviate risks along the entire value chain. Further, compliance and corporate risk will have to include ESG issues in their operational risk-management practices and processes to tackle them holistically. Many companies, however, still see mastering ESG as a cost and a burden. We strongly believe they need to embrace this challenge and view it as one of the greatest business opportunities of the century . It’s time to stop playing defense and start playing offense .

Besides the much-publicized ESG challenges, GBA members have pointed out that the battery value chain confronts massive economic barriers (Exhibit 4). Historic price peaks and extreme volatility, as well as quickly changing national regulations, can massively affect the economic viability of projects. Higher battery prices also make some green applications far less attractive than they were previously, which could delay much-needed attempts to accelerate decarbonization. Although economic viability is the most urgent issue for leaders, a more complex challenge involves the industrialization and historic scale-up of the battery industry.

Dealing with shortages

Shortages of manufacturing equipment, construction material, and the skilled labor required to ramp up production are a few reasons why many battery-cell factories experience significant delays. Vertical supply-chain integration and long-term contracts, as well as greater collaboration, could mitigate some of these issues. Additionally, open dialogue and education with local communities and stakeholders are likely key to achieving more widespread acceptance and support for the battery industry.

The metals and mining sector will supply the high quality raw materials needed to transition to greener energy sources, including batteries. If companies can provide sustainable materials—those with a low CO 2 footprint—they might capture a green premium , since demand is ramping up for such products. It may be difficult to provide sustainable materials in the quantities needed to meet demand, however.

Producers and purchasers could mitigate potential shortages of raw materials by redefining their strategies and operations to be economic, transparent, sustainable, and circular. For instance, producers need to build or re-create a growth agenda based on economic viability to ensure execution. Further, they need to strive for continuous innovation in productivity and decarbonization of operations while simultaneously pursuing diverse partnerships that will embed them in downstream supply chains. Purchasers, on the other hand, must adapt technology rollout plans—for instance, by increasing flexibility regarding battery technologies and raw-materials requirements—and accelerate innovation on product design and material usage. They must also send clear signals about long-term demand. to decrease the uncertainties about market size that often deter producers from undertaking multi-billion dollar mining and refining projects, which often have 20 to 30 year lifetimes.

Would you like to learn more about the Battery Accelerator Team ?

Purchasers should aim for strategic-green-procurement excellence by identifying potential mines and refineries across different geographies and then assess their volume, quality, environmental impact (looking not just at greenhouses gases but all planetary boundaries). It will also be important to evaluate the societal risks involved in securing an adequate supply. Last, the entire value chain needs to step up their game in enabling true circularity with tight loops like life extension, rather than just the wide loop of recycling.

This article and the underlying data and analytics can help promote better planning by the relevant stakeholders in the private and public sectors, as well as by investors. These stakeholders require a reliable fact-base and transparency on raw-material demand and supply imbalances to de-risk their investments.

Batteries require a mix of raw materials, and various pressures currently make it difficult to procure adequate supplies. McKinsey’s MineSpans team , which rigorously tracks global mining and refining capacity projects, has created several future scenarios based on available information. The base-case scenario for raw-material availability in 2030 considers both existing capacity and new sources under development that will likely be available soon. The team’s full potential scenario considers the impact of pipeline projects that are still in the earlier stages of development, as well as the effect of technology innovation and the potential addition of new mining and refining capacity.

While some battery materials will be in short supply, others will likely experience oversupply, making it more difficult to plan. The success factors for ensuring a sufficient global supply include obtaining greater transparency on supply and demand uptake, proactively identifying the need for new mining and refining capacities to avoid bottlenecks, channeling investments into new capacity, and improving investment returns and risk management.

Almost 60 percent of today’s lithium is mined for battery-related applications, a figure that could reach 95 percent by 2030 (Exhibit 5). Lithium reserves are well distributed and theoretically sufficient to cover battery demand, but high-grade deposits are mainly limited to Argentina, Australia, Chile, and China. With technological shifts toward more lithium-heavy batteries, lithium mining will need to increase significantly. Meeting demand for lithium in 2030 will require stakeholders to strive for the full potential scenario, which factors in the impact of almost every currently announced project in the pipeline and will require significant additional investment in mining projects. The full potential scenario also involves putting greater emphasis on smart product technology choices , such as the use of silicon anodes instead of Li-metal.

Nickel reserves are dispersed across various countries, including Australia, Canada, Indonesia, and Russia (Exhibit 6). In our base scenario, there would only be a small shortage of nickel in 2030 because of the recent transition to more lithium iron phosphate (LFP) chemistries and plans to increase mining capacity. Although McKinsey’s full potential scenario projects a significant oversupply of nickel if stakeholders achieve their planned mining and refining potential, companies could still have difficulty acquiring sufficient quantities because of quality requirements (for instance, the need for class 1 nickel rather than class 2 nickel in the form of ferroalloys) and the limited geographic distribution of mines. No matter how supply evolves, the industry will need to consider one critical question: How to find sustainable nickel for batteries ? In answering this question, companies must consider CO 2 intensity differences across assets.

Approximately 75 percent of today’s mined cobalt originates from the Democratic Republic of Congo (DRC), largely as a by-product of copper production (Exhibit 7). The remainder is largely a by-product of nickel production. The share of cobalt in batteries is expected to decrease while supply is expected to increase, driven by the growth in copper mining in the DRC and of nickel mining, primarily in Southeast Asia. While shortages of cobalt are unlikely, volatility in supply and price may persist because it is generally obtained as a by-product.

Supply of manganese should remain stable through 2030 since no announcements of additional capacity are expected (Exhibit 8). Demand for manganese will likely slightly increase and, thus, our base scenario estimates a slight supply shortage. The industry should be aware that some uncertainty surrounds manganese demand projections because lithium manganese iron phosphate (LMFP) cathode chemistries could potentially gain higher market shares, especially in the commercial vehicle segment.

Mitigating emissions

Battery electric vehicles (BEVs) often are criticized for their greenhouse-gas footprint throughout their life cycle. However, although results vary significantly depending on factors such as milage, production, and electricity grid emissions, our models clearly indicate that BEVs are the most effective decarbonization option for passenger cars.

Our calculations show that total emissions are much lower today for BEVs than vehicles with internal combustion engines (ICE), because BEVs emit lower emissions during the use phase (the time that vehicles are on the road) (Exhibit 9). In the worst case scenario, with no low-carbon electricity, total life-cycle emissions for BEVs are about 50 percent lower in Europe and 72 percent lower in the United States compared with ICE vehicles. Once recharged with low-carbon electricity during the use phase, BEVs achieve even better life-cycle carbon footprints than ICE vehicles, with about 77 percent lower emissions in Europe and 88 percent lower emissions in the United States. Although BEVs are superior in life-cycle emissions, their material and manufacturing emissions per vehicle are double those of ICE vehicles. These greenhouse-gas emissions before the use phase are responsible for 40 to 95 percent of total life-cycle emissions of BEVs, depending on the grid electricity used for charging. Decarbonizing production, primarily for battery, aluminum and steel , is therefore much more critical for BEVs than it has been for ICEs.

In the next five to seven years, ambitious players might cut the carbon footprint of battery manufacturing by up to 90 percent, but this would call for changes throughout the whole value chain.

Different tactics can aid in abatement. In the best-case scenario, some of these would result in cost savings, while others would entail large expenditures. Under the most beneficial circumstances, companies might potentially decarbonize up to 80 percent of emissions at a minimum additional cost (Exhibit 10). The site of manufacturing and the intended market, including its carbon price, customer demand, and willingness to pay potential green premiums, will help determine how cost competitive low-carbon batteries may be.

The most effective decarbonization levers include the use of circular materials and low-carbon electricity. Their economic attractiveness may vary, however, primarily because of local issues, such as electricity feed-in-tariffs, subsidies, and available materials.

Technological advances

Some recent advances in battery technologies include increased cell energy density, new active material chemistries such as solid-state batteries, and cell and packaging production technologies, including electrode dry coating and cell-to-pack design (Exhibit 11).

When making investments decisions, battery manufacturers could find these rapid advances challenging. After choosing the battery technology that fits their application needs best, they should then quickly secure the required raw material upstream, acquire the capable machinery mid-stream to suit the battery chemistry and application, and recruit the indispensable talent required for those projects.

The uncertainty about cell technologies and form factors supplied by different producers also imposes significant complexity costs and risks to the after-sales, repair, and maintenance of batteries. Vehicle OEMs need to ensure that EV battery modules and packs can be replaced at a low cost long after the typical eight-year warranty period.

To manage uncertainty, battery cell manufacturers need to plan their target investments carefully and scout for external funding opportunities, such as green bonds or subsidies in relevant regions. Simultaneously, they should accomplish several other important tasks: plan their manufacturing plants, optimize short- and long-term costs to ensure agility and adaptability of production lines, and steer investments into new technologies.

Unlocking growth in battery cell manufacturing for electric vehicles

Battery 2030: resilient, sustainable, and circular.

The 2030 outlook for the battery value chain depends on three interdependent elements (Exhibit 12):

• Supply-chain resilience. A resilient battery value chain is one that is regionalized and diversified. We envision that each region will cover over 90 percent of local cell demand, over 80 percent of local active material demand, and over 60 percent of refined materials demand. In addition, by recycling raw materials that are primarily found in one location (such as cobalt), countries can reduce their dependency on others. A recycling target of 80 percent, as recently specified in the EU battery directive, could become an aspiration for 2030 for all regions globally. Across the entire value chain, the industry could contribute to up to 18 million jobs in 2030 by securing existing positions and creating new ones. The number of projected jobs—80 percent higher than in our 2019 report —relates to the higher expected battery demand estimates for 2030.
• A focus on sustainability. Batteries are a major tool in the challenge to decarbonize the mobility sector and other industries—a task that is essential to avoid triggering irreversible climate tipping points. The battery revolution could reduce cumulative greenhouse-gas emissions by up to 70 GtCO 2 e between 2021 and 2050 in the road transport sector alone. However, the battery industry will need to prioritize the decarbonization of its own industry to maintain its credibility. Our analysis suggests that material and manufacturing emissions could fall 90 percent per kWh battery on the cell level by 2030. Further pack level emissions will mostly depend on achievements in decarbonizing aluminum, steel, and plastic production. The industry could also benefit from setting ambitious improvement targets in the nine planetary boundaries that the Stockholm Resilience Center defined and quantified. These include freshwater change, stratospheric ozone depletion, atmospheric aerosol loading, ocean acidification, biogeochemical flows, novel entities, land-system change, biosphere integrity, and climate change. Significant improvements for all social and governmental challenges mentioned earlier are also necessary to achieve true sustainability.
• Creation of a circular value chain. The battery industry has to move from a linear to a circular value chain —one in which used materials are repaired, reused, or recycled. This transformative approach may also create huge economic potential, with some opportunities already available today (for instance, scrap recycling). A large cross-industry effort and coordination will be needed for stakeholders to achieve the full potential of a circular value chain. Companies could benefit from investigating sustainable and economically viable applications that would increase circularity, or by leveraging technological advances that contribute to this goal.

At a minimum, the battery industry’s growth must help fulfill basic human, product, and economic needs. Important goals include social welfare, inclusive value creation, adherence to international law, emphasis on human rights, creation of durable and performing products, and economic viability for businesses. To create a well-functioning value chain, companies should attempt to avoid any shortcomings in these areas. For sustainability, the battery industry can only achieve true sustainability if it does not overshoot any of the nine planetary boundaries that the Stockholm Resilience Center defined and quantified.

Based on our extensive experience in the global battery value chain, we have identified ten transformational success factors that will pave the way for our 2030 vision in which batteries power a resilient, sustainable, and circular future (Exhibit 13).

Establishing value chain circularity. Achieving circularity along the entire value chain could increase resilience against supply shortages and price volatility. It will also mitigate risks related to battery-waste disposal. Companies could gain additional value by adopting circular business models , such as battery as-a-service or mobility as-a-service, repair, refurbishment and second-life applications. If none of these options is available, then battery recycling is essential. Circularity will necessitate cross-industry collaboration and partnerships, as well as data transparency and harmonized standards.

Increasing energy efficiency and electrification share. Most large-scale battery factories that will be operational in 2030, and for many years beyond, are now being built. As such, mastering energy efficiency —for instance, via building insulation or heat recovery—is key.

Minimizing environmental impacts beyond climate A truly holistic approach will have to go far beyond producing low- carbon batteries. Stakeholders will have to take into account other planetary boundaries to ensure the global battery industry has a truly positive environmental impact along the entire value chain. Adhering to the 2022 Kunming-Montreal biodiversity agreement (which includes a target to protect 30 percent of Earth’s surface by 2030) is especially important as it is a landmark in the global effort to safeguard natural habitats . It can be viewed as the equivalent to the Paris agreement for fighting climate change.

Creating positive, just, and inclusive social impact. By ensuring health, safety, fair-trade standards, human rights, and inclusive dialogues , the battery industry could provide a positive impact on many local communities around the globe as it scales up. The GBA has published various rulebooks on these dimensions.

Sourcing 24/7 low-carbon electricity and heat. A 2022 report by the Long Duration Energy Storage Council and McKinsey showed that traditional clean power purchase agreements only enable a 40 to 70 percent decarbonization of buyers’ electricity consumption while exposing them to market price risks stemming from renewables variability. Companies might achieve better results with time-matched green energy solutions, enabled by long-duration storage technologies , which can help match supply and demand for electricity and heat during every hour of the year. The battery industry could become a frontrunner in accelerating deep decarbonization of the grid, despite its additional energy demand, if companies procured time-matched clean energy to meet all their needs.

Establishing full supply-chain transparency and compliance. Data availability and transparency are fundamental requirements to ensure that the industry achieves its growth and ESG targets. This will require harmonized, credible, and trusted data. The Global Battery Alliance’s Battery Passport may be a resource here.

Embracing technology innovation and flexibility. For cell manufacturers and OEMs to become leaders in technology, process optimization, and modularity, they could aim to understand market dynamics, be flexible, and adopt promising innovations .

Securing raw material and machinery supply. Companies could explore long-term agreements, and co-funding, acquisition, and streaming arrangements with raw material and equipment machinery companies to ensure adequate supplies. This might help avoid supply shortages in construction materials, skilled labor, and machinery and thus mitigate the significant delays that often occur in new production capacity projects today. Further, companies could consider securing access to capital, rigorously plan and execute complex permitting processes, and navigate import and export bureaucracy to ensure a scheduled execution.

Excelling in cost and regional execution. There have been tremendous improvements in battery costs, manufacturing efficiency, and required capital expenditures over the past decade. Companies will need to continue excelling in these dimensions to remain competitive.

Harmonizing international standards and regulations. Diverging manufacturing standards and local regulations increase costs and pose barriers to faster scale-ups. GBA members see harmonization as one of the most critical goals to achieve around the globe. Private-public partnerships, as well as industry alliances, could help significantly in orchestrating the alignment process by fostering dialogue in multi-stakeholder environments.

In many respects, the current battery industry still acts as a linear value chain in which products are disposed of after use. Circularity, which focuses on reusing or recycling materials, or both, can reduce GHG intensity while creating additional economic value (Exhibit 14).

A circular battery value chain can effectively couple the transport and power sectors and is a foundation for transitioning to other sources of energy, such as hydrogen and power-to-liquid, after 2025 to achieve the target of limiting the increase in emissions to 1.5° C above pre-industrial levels. Despite the accelerated emphasis on sustainability during the COVID-19 pandemic, global CO 2 emissions reached an all-time high in 2021 and 2022—meaning that just over six years are left before the 1.5°C carbon budget is depleted. This requires the highest urgency to act.

Current regulations encourage circularity, and a shift to this model could bring many benefits. For instance, companies would encounter fewer supply bottlenecks resulting from the limited availability of raw materials. Circularity could benefit the environment since companies would less frequently engage in virgin raw material mining and refining. On the financial side, companies might capture additional value if they reuse raw materials contained in end-of-life batteries.

Digital technology could increase circularity by providing the transparency and data management required to create an efficient ecosystem in which batteries and critical materials can be traced through end-of-life.

Improving recycling

Battery manufacturers may find new opportunities in recycling as the market matures. Companies could create a closed-loop, domestic supply chain that involves the collection, recycling, reuse, or repair of used Li-ion batteries. The recycling industry alone could create a $6 billion profit pool by 2040, by which time revenue could exceed $40 billion—more than a three-fold increase from 2030 values (Exhibit 15).

Current recycling business models are costly and heavily dependent on various factors, including battery design, process quality, and shifts in market supply or raw-material demand. In addition, operational challenges, such as limited access to battery materials, inefficient processes, and low yields resulting from immature technologies, remain persistent problems in the recycling sector.

Regulatory incentives, as well as corporate sustainability goals, provide companies with strong reasons to improve their recycling efforts by optimizing access to feedstock, technological processes, and strategic partnerships throughout the battery value chain. Companies could also improve recycling by drawing on knowledge gained from lead acid battery recycling.

Regional variations in the value chain

Value chain depth and concentration of the battery industry vary by country (Exhibit 16). While China has many mature segments, cell suppliers are increasingly announcing capacity expansion in Europe, the United States, and other major markets, to be closer to car manufacturers. Partially because of recent regulatory changes, these new locations could provide almost 40 percent of global capacity in 2030. Although current globally-announced nameplate capacity of Li-ion cell factories exceeds our market demand projections, there are several reasons why it will likely remain a supplier’s market with temporary supply bottlenecks: not all announced projects will be executed, not all will operate at full capacity, and many will be delayed. Further, battery cells are not sold on a free-floating spot market but via long-term supplier contracts. Despite rising local demand, China will likely continue to have significant overproduction capacity, while Europe and North America might not be able to meet their own local demand for cell production.

Although companies in many locations are still announcing new capacity, local growth comes with challenges. Management of the upstream supply chain will remain critical given the nature of regional raw material availability . Players in the battery value chain who want to localize the supply chain could mitigate these risks through vertical integration, localized upstream value chain, strategic partnerships, and stringent planning of manufacturing ramp-ups.

The battery value chain is facing both significant opportunities and challenges due to its unprecedented growth. It is probably one of the most ambitious scaling and ESG transformations that this highly complex and global product value chain has seen. It will require stringent efforts, cross-industry collaboration, technological disruptions, public-private-partnerships and increased research activities to succeed. If mastered, however, the industry scale-up will potentially create more than $400 billion in value-chain revenues by 2030, contribute to up to 18 million jobs along the entire value chain and around 70 GtCO 2 e avoided cumulative road transport emissions from 2021 to 2050.

We strongly believe that a resilient, sustainable, and circular global battery value chain is not only possible but also admirable to achieve sustainable inclusive growth.

Jakob Fleischmann and Patrick Schaufuss are partners in McKinsey's Munich office, where Martin Linder is a senior partner; Mikael Hanicke is a senior partner in the Gothenburg office; Evan Horetsky is a partner in the Stockholm office; Dina Ibrahim is an consultant in the London office; and Sören Jautelat is a partner in the Stuttgart office, where Lukas Torscht is a consultant and Alexandre van de Rijt is an associate partner.

The authors wish to thank the Global Battery Alliance and its members for providing deep real-life insights and expertise to this article. McKinsey's Battery Accelerator Team has collaborated with the Global Battery Alliance since their inaugural report in 2019, A Vision for a Sustainable Battery Value Chain in 2030: Unlocking the Full Potential to Power Sustainable Development and Climate Change Mitigation . Further, the authors wish to thank Marcelo Azevedo, Nicolò Campagnol, Bernd Heid, Russell Hensley, Patrick Hertzke, Evan Horetsky, Raphael Rettig, Daniel Schmid, Markus Wilthaner, and Ting Wu for their contributions to this article. They also wish to thank the broader Automotive, Sustainability, Global Energy and Materials Practice partnership and their solution colleagues at MineSpans, Battery Insights, Sustainability Insights, the McKinsey Platform for Climate Technologies, and the McKinsey Center for Future Mobility for their input and guidance.

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Lithium-Ion Battery Recycling Frequently Asked Questions

On this page:

Are lithium batteries hazardous waste?

Does universal waste cover batteries with lithium chemistries, what are the universal waste requirements for lithium batteries, what are the federal regulations for generators of very small amounts of hazardous waste batteries, how does the household hazardous waste exemption apply to batteries, are electric vehicle batteries considered household hazardous waste, can a damaged, defective, or recalled battery be managed under universal waste, what are some additional best management practices for safely storing collected end-of-life lithium batteries, what waste management activities are allowed under universal waste for handlers of batteries, can universal waste handlers process universal waste batteries by shredding them to make black mass, when do the universal waste standards no longer apply to a battery being processed at end of life, does a battery recycler have to get a rcra part b permit for hazardous waste treatment, storage, or disposal, is a lithium battery a solid waste when it is reused, repurposed, or repaired or when it is sent for evaluation for reuse, repurposing or repair, do smelters that process batteries qualify for the smelting, melting, refining exclusion from the rcra boilers and industrial furnaces requirements in 40 cfr part 266 subpart h, is black mass a hazardous and/or solid waste when sent or received for further reclamation.

• Can you recycle lithium batteries using the definition of solid waste transfer-based exclusion at 40 CFR 261.4(a)(24) and (25)?

When are materials from lithium batteries that are being recycled sufficiently processed to no longer be considered waste?

Can lithium batteries be managed under the scrap metal exclusion, additional resources.

When they are disposed of, most lithium-ion (secondary batteries) and lithium primary batteries in use today are likely to be hazardous waste due to ignitability and reactivity (D001 and D003). With the exception of households, generators of lithium battery hazardous waste are responsible for determining whether the spent lithium batteries they generate are hazardous waste and, if they are, the generators need to manage the batteries accordingly under hazardous waste requirements. (Refer to Question #5 for information on safe household battery management.)

There are a wide variety of lithium battery chemistries used in different applications, and this variability may impact whether a given battery exhibits a hazardous characteristic. Lithium batteries with different chemical compositions can appear nearly identical yet have different properties (e.g., energy density). In addition, other aspects of a battery’s design beyond simply the chemistry can also impact its likelihood to be ignitable and/or reactive and pose a hazard during end-of-life management. Some discarded lithium batteries are more likely to have hazardous characteristics if they contain a significant charge, yet such batteries can appear to the user to be completely discharged.

In addition, the design of advanced batteries used in electronics, energy storage, and electric vehicles will continue to evolve and may result in new chemistries that become common in use and that will have to be evaluated for potential hazards at end of life.

For these reasons, it can be difficult for a generator to identify which of its used lithium batteries are hazardous waste when disposed of. Therefore, EPA recommends that all lithium batteries be managed with care during use and at end of life and that businesses consider managing all of their used lithium batteries as hazardous waste under the federal “universal waste” regulations in Title 40 of the Code of Federal Regulations Part 273 .

Yes. Both rechargeable lithium-ion and single use lithium primary batteries can be managed as universal waste. The universal waste definitions describe batteries as devices consisting of one or more electrically connected electrochemical cells which are designed to receive, store, and deliver electric energy ( 40 CFR 273.9 ). While the universal waste battery regulations were developed before lithium-ion and lithium primary batteries were a common technology, the definition of a battery in these regulations broadly captures batteries that would be hazardous waste. 

The universal waste regulations provide a streamlined set of requirements under RCRA for generators and other handlers of specific types of common hazardous wastes from a wide variety of commercial settings (e.g., batteries, recalled pesticides, mercury-containing equipment, aerosol cans). Requirements differ depending on whether the handler accumulates more or less than 5,000 kilograms of total universal wastes on site at one time, but include how to manage the waste, how to label containers, how long the waste can be accumulated on site, where the waste can be sent, and other aspects of end-of-life battery management. Universal waste regulations do not require shipment using a hazardous waste manifest but do require that the waste be sent to a permitted hazardous waste disposal facility or a hazardous waste recycler as the final destination. International shipments of lithium batteries managed as universal waste must also comply with RCRA requirements for export and import of universal waste. EPA’s universal waste battery regulations do not mandate use of a uniform hazardous waste manifest or shipment using a hazardous waste transporter, but Department of Transportation regulations for shipping lithium batteries do apply.  EPA recommends that businesses consult their state solid and hazardous waste agencies for additional information on applicable universal waste regulations. Given the number of fires from lithium batteries, EPA is evaluating the universal waste battery management standards.

A non-household that generates fewer than 100 kilograms (about 220 pounds) of lithium batteries and all other hazardous waste in a month is a “very small quantity generator” under the federal RCRA regulations and is subject to reduced hazardous waste management requirements that include a limit on how much hazardous waste can be accumulated at any one time and certain requirements regarding where the waste can be sent for disposal. Check with your state regulatory program, as some states are more stringent and may have different requirements.

Under RCRA, household hazardous waste—waste generated by normal household activities such as routine house and yard maintenance—is excluded from the definition of hazardous waste and is not regulated by federal hazardous waste rules as long as it is not mixed with non-household waste. Wastes covered by the household hazardous waste exclusion must satisfy two criteria:

• The waste must be generated by individuals on the premise of a temporary or permanent residence, and
• The waste stream must be composed primarily of materials found in wastes generated by consumers in their homes.

EPA interprets this exclusion to include waste generated in household-like areas, such as bunkhouses, ranger stations, crew quarters, campgrounds, picnic grounds, and day-use recreation areas.

However, EPA always recommends that household hazardous waste be segregated from the municipal waste stream to avoid introducing hazards to workers and communities. Specifically, lithium batteries pose a fire hazard to waste management workers and collection facilities when disposed of in the municipal waste stream. EPA recommends that households who generate used lithium batteries treat them with care, isolate the terminals (e.g., cover the terminals with non-metallic tape while keeping the label legible, or individually bag batteries), and protect the batteries from damage. Do not place the waste lithium batteries in the household trash or in curbside recycling bins. Instead, EPA recommends that all household lithium batteries be dropped off at battery collection sites (e.g., often located at electronics retailers) or household hazardous waste collection facilities for proper management. The EPA Used Lithium-Ion Batteries web page offers resources to find a battery recycling location near you.

Household hazardous waste is regulated on the state and local level and state regulatory requirements for batteries may be more stringent than those in the federal program. Be sure to check your state's battery waste policies.

Electric vehicle batteries removed at a dealership, an auto shop, a scrap yard, or similar type of facility are not household hazardous waste.

A handler of universal waste may only manage broken or damaged hazardous waste batteries as universal wastes if the breakage or damage does not constitute a breach in an individual cell casing. The definition of battery in 40 CFR 273.9 does not explicitly state that all batteries must be whole; however, the definition includes an intact, unbroken battery from which the electrolyte has been removed ( 60 FR 25492, 25504; May 11, 1995 ). Additionally, the requirements for handlers of universal waste allow certain management activities, such as sorting and mixing batteries, provided the batteries or cell casings are not breached and remain intact (sections 273.13(a)(2) and 273.33(a)(2) ). The disassembly of a battery pack into individual modules or cells with no damage done to the cell casing does not make a battery damaged or defective.

Damaged, defective, or recalled batteries may not be transported by air. In addition, they must comply with specific Department of Transportation packaging requirements found at 49 CFR 173.185(f) .

EPA recommends that beyond following the universal waste standards for storage and DOT’s transportation standards for lithium batteries, handlers of end-of-life lithium batteries take additional precautions to protect against the chance of thermal runaway and fire. These include:

• safety training for all employees removing, disassembling, or handling the batteries;
• isolating the terminals of the batteries with non-conductive tape, plastic bags, or other separation techniques, keeping the label legible;
• preventing damage to batteries;
• storing batteries in climate-controlled spaces with good ventilation;
• storing batteries in a separate building away from other flammable materials and occupied spaces when possible;
• storing batteries that have been identified as damaged, defective, or recalled separately from non-DDR batteries in appropriate containers;
• installing advanced fire detection and suppression equipment;
• conducting frequent visual and thermal inspections of batteries;
• having ongoing communications with local fire marshals and first responders about materials and processes happening on site; and
• maintaining a plan for how to respond and evacuate in case of an emergency.

The Bipartisan Infrastructure Law of 2021 directed EPA to develop best practices for the collection of batteries for recycling. Check our website for updates on that initiative.

Universal waste handlers can conduct certain activities when managing all chemistries of batteries. These activities are sorting batteries by type, mixing batteries in one container, discharging batteries to remove the electric charge, regenerating used batteries, removing batteries from products, and removing electrolyte from batteries.

Due to the high energy density of lithium batteries, handlers may choose to discharge them before shipping them for recycling. EPA recommends that handlers ensure that any discharge is done with all appropriate safety measures in place to prevent fires and protect the health of workers and communities. Lithium batteries may remain hazardous waste after being discharged because they contain ignitable solvents.

The universal waste regulations allow handlers to remove electrolyte from batteries as long as the battery cell is closed immediately after electrolyte is removed, but this is not a likely management scenario for lithium batteries. With the exception of removing electrolyte in this way, universal waste handlers may not breach or open cells).

Refer to section 273.13 for small quantity handlers of universal waste or section 273.33 for large quantity handlers of universal waste.

What is black mass?

Black mass is the term the battery recycling industry uses to describe the filter cake-like material made up of the anode and cathode materials when lithium batteries are shredded. The constituents and properties of black mass will depend on the inputs to the shredding process as well as the specifics of the shredding process itself. Black mass is not a universal waste and is no longer a battery.

No. Shredding batteries is not an allowable waste management activity for universal waste handlers under part 273 regulations. Batteries can be shredded for recycling at a destination facility, either a hazardous waste recycler with no storage before recycling or a RCRA-permitted treatment, storage, and disposal facility.

Once a battery has arrived at the destination facility (i.e., a permitted treatment, storage, or disposal facility or a hazardous waste recycler) for recycling or disposal, it is no longer a universal waste, but a fully regulated hazardous waste. Likewise, after pretreatment for recycling (often shredding), the separated components of the battery are no longer universal waste.

Removal of hazardous waste batteries from devices, sorting, battery discharge, and disassembly of batteries into cells or modules prior to recycling would not require a RCRA hazardous waste treatment permit when performed in preparation for recycling because these activities would be considered part of an exempt recycling process per 261.6(c)(1). Likewise, shredding of batteries to produce black mass and separate foils and other materials for recycling are also part of an exempt recycling process. However, these activities should always be performed with caution and while using all appropriate best practices for safety and fire prevention. States may have battery management requirements or recycling permitting requirements that are more stringent than the federal RCRA regulations.

A battery recycler that stores hazardous waste (e.g., ignitable/reactive batteries and/or black mass that exhibits one or more characteristics of hazardous waste) before recycling must obtain a RCRA Part B permit. Federal regulations do not specify an allowable “holding time” prior to the waste being introduced to the recycling process; however, the appropriate EPA Regional office or authorized State regulatory agency may specify such a holding time on a site-specific basis, defining a time at which storage begins.

In addition, the recycling units at these facilities otherwise subject to RCRA permitting must comply with the air emission standards in part 264/265 subparts AA and BB (per section 261.6(d)), if applicable. Aside from the air emission requirements, the recycling process itself is exempt from Subtitle C requirements (section 261.6(c)(1) ).

The RCRA hazardous waste requirements for owners and operators of facilities that recycle materials without prior storage are outlined in 261.6(c)(2). Owners and operators of these facilities must obtain an EPA ID number and follow guidelines for the use of the manifest and the reporting of manifest discrepancies (section 261.6(c)(2)(i)–(ii)).

Note that universal waste handlers are prohibited from recycling their universal wastes because recycling is not allowable treatment by universal waste handlers. Thus, a battery recycler that is producing black mass from batteries cannot be a universal waste handler and must be a destination facility.

A battery that is removed from one device or application and is legitimately reused in another similar device or repurposed into another application is not a solid waste under the use/reuse exemption in section 261.2(e)(1)(ii) . In addition, as EPA has stated for electronics in general and for cathode ray tubes specifically, repairing electronics before resale is not considered reclamation, and such repair and replacement activities do not constitute waste management ( RCRA Online Document #14668 and 71 FR 42929–30; July 28, 2006 ). Therefore, electronics from a business are not considered solid wastes when sent to resellers for reuse, repurposing, and/or repair and would not be subject to RCRA requirements.

A battery being evaluated for use or reuse becomes a solid waste when a handler determines that it cannot continue to be used or reused and makes the decision to discard it. This determination can be done off site, but there has to be a reasonable expectation of reuse. From the point the decision is made to discard the battery, it must be managed under the universal waste requirements in part 273 or the hazardous waste requirements in parts 262 through 268.

Legitimate use or reuse of batteries must comply with the legitimate recycling factors in section 260.43 . Factors 1 through 3 must be met and a recycler must consider factor 4 in ensuring the use/reuse is legitimate. In the context of lithium batteries, these factors would be as follows:

• The battery provides a useful contribution to a product—when removed from service, it still has the potential to continue to operate effectively and safely as a battery in a device or piece of equipment that requires a battery.
• The reused battery is a valuable product—the product can be sold to a third party or used by the recycler as an effective substitute for a battery they would otherwise purchase.
• The battery is managed as a valuable commodity—between removal from service and reuse, it is managed with appropriate safety and tracking procedures similar to newly manufactured inventories of batteries.
• The reused battery does not contain hazardous constituents or exhibit hazardous characteristics that an analogous product does not—a battery that is damaged or otherwise not safe could be more likely to be reactive and go into thermal runaway than a healthy battery and should not be reused or sold for reuse.    

Certain furnaces that process hazardous waste lithium batteries or hazardous waste black mass solely for the purpose of recovering metal(s) may qualify for this exemption, providing they meet all of the requirements for the exemption. Treatment of non-metals, or of metals that will not be recovered via smelting, in these units could constitute a violation of RCRA.  States may also have their own regulations for the containment building in which the smelting occurs.

As described above, black mass is the term industry uses to describe the filter cake-like material made up of the anode and cathode materials when lithium batteries are shredded. The constituents and properties of black mass will depend on the inputs to the shredding process as well as the specifics of the shredding process itself. Black mass is not a universal waste and is no longer a battery. A hazardous waste remains a hazardous waste until, per 40 CFR 261.3(d) , it doesn’t exhibit any hazardous waste characteristic, and, if it has been listed, it undergoes a delisting ( 40 CFR 261.3(c) ).

Black mass could exhibit one or more characteristics of hazardous waste, but it is not derived from a listed waste. Therefore, it is not a hazardous waste once it no longer exhibits a characteristic. Until the recycling process is complete, it would remain a solid waste that may be regulated under state and local solid waste requirements. 

If black mass does not exhibit a characteristic of hazardous waste, it would not be a hazardous waste. Though the most common metals used in lithium batteries do not appear on the list of contaminants that can make a waste exhibit the toxicity characteristic found in 40 CFR 261.24 , contamination from other chemistries of batteries could result in black mass exhibiting the toxicity characteristic for a hazardous constituent such as cadmium. EPA recommends careful sorting of battery chemistries to avoid contamination. In addition, the composition of the electrolytes, binders, and other additives to batteries can vary significantly by manufacturer and between generations of batteries. Under the RCRA regulations, it is the generator’s responsibility to make an accurate hazardous waste determination of any waste stream and manage the waste accordingly.   

In addition, note that wastes that exhibit a characteristic at the point of generation may still be subject to the RCRA land disposal restrictions of part 268 , even if they no longer exhibit a characteristic at the point of land disposal ( 40 CFR 261.3(d)(1) ). Therefore, if the black mass is being disposed of instead of recycled, or if it is managed on the land prior to recycling, then the land disposal restrictions would apply.

Can you recycle lithium batteries using the definition of solid waste transfer-based exclusion at 40 CFR 261.4(a)(24) and (25) 1 ?

Yes, lithium batteries can be recycled under the definition of solid waste recycling exclusion at 40 CFR 261.4(a)(24) and/or 40 CFR 261.4(a)(25) (for recycling occurring domestically and after export, respectively) as long as (1) both the state that the batteries are generated in and the state in which the recycling takes place have adopted this exclusion and (2) all of the conditions of the exclusion ( 40 CFR 261.4(a)(24) and/or 40 CFR 261.4(a)(25) ) are being met by all applicable parties.  Note that these requirements have implications for both the recycler (e.g., financial assurance or a RCRA storage permit) and the generators of the batteries (e.g., generators must conduct a “reasonable efforts” audit on the recycler if the recycler does not have a RCRA permit).

In addition, if a shipment of hazardous secondary material is being transported through a state that has not adopted the exclusion, that transit state’s hazardous waste regulations could apply once the shipment reaches the border of that state. We encourage companies to contact all states through which interstate transport of your hazardous secondary materials may occur to ensure compliance with each state's regulations.

1 The definition of solid waste exclusion found at 40 CFR 261.4(a)(24) is either called the transfer-based exclusion or the verified recycler exclusion depending on whether states adopted the 2018 or 2015 version of the Definition of Solid Waste Rule, respectively. For more information on implementation of this exclusion, refer to the Definition of Solid Waste implementation guide (pdf) . For a map of which states have adopted the Definition of Solid Waste Rule, refer to the Definition of Solid Waste Rule webpage .

Materials derived from recycling lithium batteries, such as black mass and other intermediates, are no longer wastes when they do not need to be reclaimed further before being used as an ingredient in a process to make a new product. That is, for example in lithium battery recycling, reclaimed metals that are suitable for direct use, or that only have to be refined to be usable are now products and no longer considered wastes.

Batteries are specifically not included in the scrap metal exclusion (50 FR 624), so this exclusion is not applicable to the management of end-of-life lithium batteries.

For more information on lithium-ion battery recycling, please visit the following resources:

• Lithium-ion Battery Recycling.
• Used Lithium-Ion Batteries.
• Frequent Questions on Lithium-ion Batteries.
• Universal Waste webpage: Batteries section.
• Workshop on Lithium-Ion Batteries in the Waste Stream.
• Battery Collection Best Practices and Battery Labeling Guidelines.
• Department of Energy ReCell Center for Advanced Battery Recycling webpage.
• National Renewable Energy Lab report: A Circular Economy for Lithium-Ion Batteries Used in Mobile and Stationary Energy Storage.
• Hazardous Waste Home
• Learn the Basics of Hazardous Waste
• Identification
• Definition of Solid Waste
• Characterization
• Transportation
• Land Disposal Restrictions
• Requirements for Importers
• Requirements for Exporters
• Regulations for Certain Wastes
• EPA Hazardous Waste Initiatives
• SW-846 Test Methods
• State Authorization
• A to Z Directory of Topics

The Precourt Institute for Energy is part of the Stanford Doerr School of Sustainability .

Stanford team wins 2022 EnergyTech University prize with battery recycling business plan

In late February, Stanford University juniors Lyna Kim and Evan Baldonado, and sophomore Patrick Kim zoomed into the California regional competition for the U.S. Department of Energy’s inaugural EnergyTech University Prize to present their commercialization idea before a panel of judges.

They were up against mostly graduate students with more industry experience than they had, so the team's expectation of winning was low. They didn't even come up with a snappy name.

Snappiness may be overrated. The team won their regional and its $2,500 award. And, a month later at the national competition, they took home first place and $50,000.

The  EnergyTech University Prize  challenges teams of college students to develop and present business plans for commercializing sustainable energy technologies to a panel of judges. The teams must identify a high-potential energy technology, conduct a market analysis to determine commercialization opportunities, and create a business plan.

Recalled Baldonado, “Lyna reached out and said ‘Hey, do you want to form a team?’ I’d done a lot of sustainability-related things, but I thought it would be cool to learn more about energy.”

First-place Stanford team presents at EnergyTech University Prize nationals.

The format of the competition gave the team, “Mechanochemical Recycling of LCO Batteries,” confidence that they could be serious competitors despite having less experience than most of their competitors.

“One of the cool things about the contest was that it was based on the strength of the pitch, not necessarily the experience of the team,” said Baldonado in an interview after the competition.

The technology

The Stanford team developed a plan to commercialize the recycling of lithium cobalt oxide batteries, which is the most common type of rechargeable lithium-ion battery. LCO batteries are used in most small portable electronics such as mobile phones, tablets, laptops, and cameras. According to the team, while lithium-ion batteries are revolutionizing energy storage, demand for them will soon outstrip the materials available to build them. With expanding battery use in electric vehicles, consumer electronics, and energy infrastructure, the team saw an opportunity to market the gap between needed and available materials.

“The cool part about this was that you were able to find existing research, and figure out how to turn it into a business plan,” said Baldonado. “This is not a concept that we came up with, but we made a pitch to commercialize that research.”

According to the group, cobalt is the primary resource in rechargeable batteries that will cause a strain on supply, but an opportunity lies with recycling spent batteries and reusing their materials. Citing the diminishing market share of LCO batteries due to high cobalt costs and relatively short battery lifespans, Baldonado argued in front of judges that the batteries should be recycled to recover their valuable contents.

“Currently, only 5 percent of batteries are being recycled, so there’s a ton of room for growth to parallel the lithium-ion battery market,” said Baldonando.

The technical recycling process involves three simple steps, a streamlined process developed by the Department of Energy’s  Ames Laboratory  to reduce the number of steps needed for the current recycling process.

“A steel mill ball grinds up the batteries to gather material such as aluminum,” said Baldonado. “Later, magnets are used to remove the cobalt, and the separation and purification process yields lithium carbonate.”

Business plan

Today’s methods of recycling involve burning and melting, or using acids, which are expensive, according to the team’s presentation. Current methods also fail to recover some material, are environmentally suspect due to the abrasiveness of the chemicals, and “are just plain inefficient,” according to Baldonado. The team’s plan aims to reduce all of these negative variables.

“Phase one is partner acquisition, where we aim to gain end-of-life battery feedstock to recycle,” said Baldonado.

Next, the group proposed acquiring pre-existing recycling plants rather than constructing new ones. And lastly, the group would sell their collected materials to raw metals customers. Using the  EverBatt  model from Argonne National Lab, the team estimated that their plan would bring in over $28 million in annual profit. Additionally, due to consumer pressure to create sustainable supply chains, the group thinks rising costs of cobalt will bump up their profit.

“Major lithium-ion battery consumers are willing to pay a green premium for recycled cobalt,” said Lyna Kim.

The business would reduce the need for mining, slash chemical leakage as a result of improperly disposed batteries, and support the EV transition.

“I think participating in this competition has taught me more about the business side of things,” said Baldonado, who in 2021 researched public opinion about climate change with Stanford’s  Political Psychology Research Group  through the  Summer Undergraduate Program on Energy Research  at Stanford’s Precourt Institute for Energy. “Learning how to make a pitch, how to really sell it, and some basic economics behind running a business was very eye-opening for me.”

The team is not sure where they will go with their idea. At the end of the day, however, Kim said they met their goal.

“We wanted to work together to bring new tech to light and make waves in climate,” she said.

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Battery Recycling Technology & Business Opportunity

Over the last two decades, national governments, advocacy groups, policymakers, and environmentalists have been pushing the needle forward with a long-term vision of making the world a greener planet to live in. These goals have given rise to a thriving industry that continues to grow in leaps and bounds. So if you had plans to start a battery recycling business, the time has never been brighter.

With affordable technologies and expanding opportunities, the industry landscape offers new entrants better opportunities than ever before. In this article, we will show you the key steps you need to take to start a battery recycling business. We will also throw more light on the potentials for growth and the trends driving the growth of the industry.

An Overview 

Battery recycling is not a new practice but has existed for as long as batteries became useful for powering our gadgets and appliances. However, in recent times, the importance of battery recycling has gained widespread significance. In the US alone, the population uses millions of electronic gadgets all powered by different types of batteries, and these batteries often end up in dumpsites. From tiny ones like torchlight batteries to larger ones like electric vehicles and heavy machinery, they come in different shapes and sizes.

Unfortunately, these batteries contain toxic materials that are not biodegradable. When dumped, they contaminate the soil, and the contamination spreads far and wide. The poisonous acids in these batteries expose humans to diverse risks, which is why safely dispensing batteries is an all-important policy for many governments.

So, if you decide to go into battery recycling, you will not only make good money for yourself, you will also be contributing to the conservation of our planet.

What is Battery Recycling?

Battery recycling is simply the process of converting a used battery into a useful battery through the means of electrochemical conversion. Batteries contain chemicals, and these chemicals generate energy that powers our appliances and gadgets. Unfortunately, the more we use the batteries, the more the chemicals deplete up to the point when the materials are no longer generative.  

When you recycle a battery, you don’t necessarily tamper with the structure if the electrolyte is not damaged. All you do is recycle the chemical components of that battery. Furthermore, you need to know that 

• Not all batteries can be recycled 
• Not all recyclable batteries are profitable 
• Not all profitably recycled batteries are effective 

With these in mind, you should know that only very few batteries can be recycled efficiently and earn you a profit. Fortunately, there are so many batteries that fall under the categories of recyclable, efficient, and profitable.

Li-ion Battery Recycling – EV Battery

As of now you cannot recycle Lithium-ion batteries to the full strength like new ones because fast charging reaction rate and slow discharging reaction rate makes the electrolyte weak.

Lithium-ion batteries are used in Tesla electric vehicle. The materials of Li-ion batteries are highly recyclable but the cost of recycling and weak electrolyte at the end makes it not profitable. 

Many startups are working on the Li-ion battery recycling process in a cost effective manner. Li-ion battery recycling is not successful in the United States because we do not have a profitable recycling process yet.

Lithium-ion Batteries Recycling Process

• Discharge the battery
• Disassembly of batteries(ev batteries)
• Mechanical process like crushing and sorting
• Electrolyte recovery process
• Hydrometallurgy process – extraction of metals
• Pyrometallurgy process – Using heat to purify metals

The Battery Production Industry 

Most manufacturers focus mainly on the current usage of the batteries that they produce. What happens to them afterward does not fall within their purview. This best explains why there is so much environmental contamination and why there is such a large market for battery recycling. However, before you take the first steps to start your battery recycling business, you need to know which batteries will earn you the most profits.

• Lithium-ion batteries are very expensive, so demand for them is not as high as other batteries for recycling.
• Lead-acid batteries are highly demanded and represent about 90% of the global recycled volume.
• Other battery types have varying degrees of profit margins.

Note: Recycling of lead acid batteries is most profitable as compared to others. The battery recycling industry is dominated with lead acid battery.

Types of Batteries

Another thing to take note of to guide your business decisions is the type of batteries you want to recycle. In the recycling industry, batteries are classified under three categories.

• Rechargeable Batteries – Lithium-Ion, Nickel Metal Hydride, Nickel Cadmium, 
• Non-Rechargeable Batteries – Zinc Air, Mercury, Carbon Zinc, Alkaline, Lithium, Silver Oxide 
• Industrial Batteries – Steel Case, Wet Cadmium – Nickel Iron – Large Flooded Cell – Absolute – UPS – Car and Marine batteries 

Do note that not all batteries can be recycled profitably. Therefore, the responsibility lies with you to identify the ones you can recycle at the least cost to make the most profits.

Lead-Acid Battery Recycling Process

Lead-acid batteries recycling is the most profitable business. You should know that the new lead-acid battery contains up to 85% recycled plastic and lead.

The process of Lead-Acid Battery recycling are as follows:-

• Collection of lead acid batteries
• Hammer mill is used to break the battery into pieces
• Process the broken batteries in a rotary furnace where lead and other heavy metals get collected at the bottom and plastic on the top of the furnace.
• Plastic collection and melting is done to make new battery cases.
• The lead and other metal components are physically and chemically processed into new battery components.

Equipment you will need for Lead-Acid Battery Recycling Plant

The most important component required to start your battery recycling business is the set of equipment you need to recycle the batteries. Your plant will require several machines depending on the kind of battery you intend to recycle. Here are some of the general equipment and tools found in recycling plants.

• Blast Furnace
• Ingot casting furnace
• Rotary furnace
• Lead smelting pot
• Tools for breaking the batteries like removers, box crusher, lock cutter, etc
• Pollution control systems and tools

How many of these tools you need will depend on the type of battery you wish to recycle and your operation scale.

Cost of Setting up a Battery Recycling Plant

The cost of setting up a battery recycling plant is relative. Micro plants will cost less than small plants. Setting up a medium plant will cost less than a big plant. So, therefore, the scale of operation will determine the size and number of tools in the plant and the number of workers required. What it will take to set up a micro-business run by one man will be far less than the cost to set up a business run by dozens of workers.

However, depending on your capacity and investment, expect to spend about 15%-20% of your investment on machinery and installation. You will also need to buy some work tools as well. Furthermore, you may spend between 3%-7% of your investment on machinery maintenance. Then employees will be required to man the machinery if you operate a plant that you can not run on your own. Overall, expect the following 

• Machinery and Tools – 15%20% of investment 
• Maintenance – 3%-7%
• Business property (Rental/Lease) -20%-25%
• License/Registration/Legal fees – 2%-3%

Expect extra costs like

• Water bills
• Electricity 
• General infrastructure 
• Transportation 
• Workers’ wages (if needed)
• Office equipment 
• Account 

What is the Value of the Battery Recycling Industry?

The battery recycling industry is growing, and the prospects are brighter by the day. For example, in 2019, the value of the Lithium-ion industry was valued at $1.3 billion, and Statistica estimates that the global industry will hit $11 billion by 2027 . Also, the report shows that between 2002-2027, the market will grow by 32%.

In another report published by Market Research Future (MRF), they estimate that the global industry will hit $16.8 billion with a 9.1% annual growth until 2027. MFR also claims that the industry was worth $1.75 billion in 2020. So regardless of the estimate differentials, we all can agree that the prospect for the industry is indeed bright. Moreover, the factors and key market indicators driving the growth of the industry remains very strong as cities and nations adopt climate-friendly policies and technologies.

At this juncture, let us now review some of the steps to take to start a successful battery recycling business.

How to Recycle Battery – Business Plan

Find below some of the things you need to put in place to establish your own battery recycling business.

1. Write a Business Plan

The first important step to take is to write a business plan. Remember that a recycling business is a very serious investment, so you want to make sure that you don’t go into it blindly; otherwise, you will lose your investment. Creating a plan will prove to investors and partners that you have a full grasp of all that the business entails. Your business plan should contain information about 

• Sources of funds
• Operating costs
• Overhead costs
• Marketing plan
• Sources of raw material 
• Break down analysis
• Projected income

If your plan covers every aspect of the proposed business, you will be in a much better position to draw action plans to cater to challenges and opportunities as they arise.

2. Business Registration 

The next thing you should do will be to register the business. Will it be a partnership, a single proprietorship of a corporation? The structure of the business will show up in the registration documents. You also have to register the business in the state you plan to operate in through the office of the Secretary of State. 

Establishing contact with the agency responsible for regulating battery recycling activities in your area is also very important to avoid environmental violations.

3. Identify your Target Market 

You now have to identify your target market. Who are you going to sell to? Where are the buyers located, and what is it going to cost you to get the product to them? This is an essential piece of your plan that should be taken seriously. If you get this right, you are already halfway on your journey to success. If you have enterprises that are willing to accept your recycled materials, your turnover rate will increase quickly.

4. Devise a Collection Plan 

Sourcing batteries haphazardly will take you more time and increase your running cost. This is why you need to devise a collection plan. Having a target source will help you gather significant volumes that you can recycle for a profit. There are various ways to do this. For example, you may choose to build a network of independent collectors who will bring them to your plant, or you can go the least expensive route of installing bins at strategic locations to collect them and schedule a pickup at regular intervals. You may even have customers who wish to dispose of old batteries ship theirs to your plant directly.

There is no golden rule about how to go about it; just make sure the plan you initiate is efficient and cost-effective.

5. Choose a Battery Niche

Another very important decision you will have to make is to pick a battery niche you wish to recycle. Will you be recycling lithium batteries, nickel-cadmium, or alkaline batteries? Will it be rechargeable batteries or industrial batteries? This is one decision you cannot afford to take lightly. Let the batteries you choose be the ones that you

• Have ready buyers for
• Can recycle for a profit
• Can recycle efficiently
• Have access to the supply chain

If the above elements are in place, your chances of succeeding will improve significantly. For example, having a collection pipeline to gather waste batteries is a great way to start. Also, scheduling regular pickups and dropoffs is another thing to plan for.

6. Promotion Plan

No matter how solid your business plan may be, you will not grow as fast as you wish if it does not include a promotion plan. This is because the industry is very competitive, and you need to put your brand out there for suppliers and buyers to see. Implementing a winning strategy will bring both parties to you rather than going to them. To be fair, at the initial stage, you will have to spend money to promote your brand, but the long-term benefits of doing so will impact your balance sheet favorably at the end of the day.

7. Plan for Challenges

As with every line of business, the battery recycling industry has its own unique set of challenges. Challenges may include

• Sourcing old batteries in commercial quantities
• Interactions with government authorities
• Price changes 
• Keeping your plant operational
• Miscellaneous issues

To be a successful entrepreneur, you need to have a plan in place to deal with these challenges and more because they are inevitable.

8. Have an Active Health Insurance Policy

Last but not least is to have a health insurance policy that is active. Although you may have all the protective gear you need, you need to plan for the potential hazards associated with dealing with radioactive materials like battery handling. In fact, in many cities, having such a plan is part of the requirements involved before you will be granted a license. If you plan to have workers on-site, they also need to have health insurance plans too.

This list is by no means exhaustive but the points discussed are some of the important components involved in setting up a battery recycling business.

Recycling technology refers to the application of scientific and engineering principles to the creation and use of materials that are derived from recycling existing objects, such as paper, plastic, rubber, electronics, and metals.

The primary benefit of recycling technology is that it helps to reduce the amount of waste that ends up in landfills and the environment by reusing existing materials. Additionally, it helps to lessen the environmental impact of manufacturing new materials and reduces the need to use natural resources.

Some of the risks associated with recycling technology include improper disposal, air and water pollution, increased energy costs due to processing, and health and safety hazards.

The cost of recycling technology depends on several factors, including the type of technology being used, the complexity of the process, and the amount of materials being recycled. Generally, recycling technologies cost more than traditional manufacturing processes.

There are numerous business opportunities available for those interested in recycling technology. These include industries related to sorting, processing, and manufacturing of recycled materials, as well as research and development in the area of recycling technology.

Yes, recycling technology is a profitable business opportunity. Companies that reuse material can save money from input costs and can also sell back some recyclable materials to third parties.

Some of the challenges businesses involved in recycling technology face include high labor costs, limited infrastructure development, and low market prices. Additionally, recycling technology can encounter unexpected costs associated with storage, disposal, and transport.

The regulatory environment for recycling technology varies by location. In the United States, legislation is in place to minimize recyclable material being sent to landfills and to encourage using recycled material.

Yes, there are various financial incentives available for businesses involved in recycling technology, such as grants and tax incentives. Furthermore, various organizations offer resources and information about recycling technology, which can be beneficial for businesses looking for funding or research.

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US dives into lithium battery recycling: 2023 preview

An intense interest in lithium battery recycling in the us has grown in the past few years, driven by concerns over supply chains, national security, the environment and a growing interest in electric vehicles (evs).

Market participants and analysts agree that the industry is still in its infancy, with innovative ways to gain more efficiency being explored.

The US government also announced investments in the field through the Bipartisan Infrastructure Law, with the Department of Energy declaring nearly $74 million in funding for 10 projects to advance EV battery recycling and reuse . The Energy Department said it was “committed to using a whole-of-government approach to securing a reliable and sustainable supply chain to improve America’s energy independence, strengthen national security and lower costs for working families.”

The limited availability in the US of raw materials used in EVs is one of the main concerns behind the rush for recycling and reusing these materials.

According to the International Energy Agency (IEA), sales of EVs in the US reached 630,000 in 2021, which would require more than 7,560 tonnes of lithium .

At present, there is only one active lithium mine in the country. Silver Peak, owned by Albemarle , produces about 5,000 tonnes of lithium carbonate equivalent (LCE) per year. This is only around two-thirds of the amount needed to power the EVs currently sold in the US.

Meanwhile, the US government announced in August 2021 that it aims for half of the vehicles sold in the country to be EVs by 2030, which would require 90,000 tonnes of lithium by 2030.

This is 1700% more than the lithium currently mined in the US.

While there are a number of lithium mine projects in the country, the fact that it takes between four and 20 years for a lithium mine to begin commercial production after an extractable source is identified is a big challenge in the rush to satisfy the needs of the rapidly growing EV industry.

“We expect the market to be undersupplied with battery raw materials,” Julia Harty , Fastmarkets battery recycling analyst, said.

China leads in all stages of EV battery lifecycle

According to the IEA, China dominates production at every stage of the EV supply chain, including raw materials , refining of raw materials, battery cell production, cathode and anode production, as well as battery and EV production.

The country also accounts for half of the 200,000 tpy global lithium battery recycling capacity, according to the IEA.

“China is an amazing example of recycling because there are recycling regulations and grants. It sets a good template of what can be done in the US and Europe,” Harty said.

She also pointed out that there are different approaches between lithium battery supply chains in China and the rest of the world.

“In China, battery recycling companies are more likely to be vertically integrated compared with Europe and North America, where there are often different companies doing each step of the process; battery collection, black mass production, black mass refining and production of CAM (cathode active material) and batteries,” Harty said.

In the US, many companies are interested in lithium battery recycling to increase the security of supply of the battery raw materials needed to accelerate the energy transition , according to Harty.

Learn how companies are helping to accelerate the energy transition by visiting our dedicated battery materials page.

End-of-life battery scrap remains limited

In North America, there are a handful of companies that are working in lithium battery recycling.

Most of the lithium battery scrap in the US comes not from end-of-life used EV batteries — EV adoption remains fairly new in the country — but in the form of manufacturing scrap from battery producers.

“Today, the biggest source of recyclable lithium battery material is gigafactory manufacturing scrap,” Thomas Frey, director of communications for lithium battery recycler Ascend Elements , told Fastmarkets.

“There is a lag between when EVs are produced and when they reach end-of-life. Generally speaking, each lithium-ion battery gigafactory has an 8-10% scrap rate. That material needs to be recycled now,” he added.

Hydro and pyro: the most widely used methods

The most prevalent method in the US to extract black mass from lithium batteries is the hydrometallurgical method, which requires aluminium and copper current collectors to be removed before using an acid-rich aqueous solution to extract the battery materials. Once the metals have been extracted into solution, they are then precipitated as salts or extracted using organic solvents.

Ontario, Canada-based Electra uses the hydrometallurgical method in its black mass recycling demonstration plant in Toronto. The company started commissioning the plant, which Electra said could “pave the way toward the buildout of a 5,000 tonne per annum black mass processing facility,” in October.

Another company using the hydrometallurgical process is Surrey, British Columbia-based RecycLiCo , who commissioned its demonstration plant in Vancouver, Canada, in 2022. The company continues to test “feedstock materials such as different cathode production scrap and black mass” at the plant.

RecycLiCo also anticipates expanding its offering of battery-ready cathode precursor and lithium products “to supplement RecycLiCo’s current lineup of unique products, which continue to be shipped to potential partners for advanced product qualification and assembly in battery cells.”

Toronto-based LiCycle currently produces black mass in its spoke facilities in Ontario, New York, Arizona, and Alabama. Combined, these four spokes have the capacity to recycle 30,000 tpy of lithium-ion batteries.

The company’s Ohio Spoke, which will have the capacity to recycle 15,000 tpy of lithium-ion batteries, is expected to become operational in 2023.

LiCycle will also commence commissioning its Rochester Hub in phases in 2023. The Hub will be recovering battery grade materials from black mass, with a capacity to process 35,000 tpy of black mass.

Reno, Nevada-based American Battery Technology Company has started construction of its Fernley, Nevada lithium-ion battery recycling pilot plant and expects to ramp up operations in 2023. The plant is designed to process 20,000 tpy of feedstock.

The company expects to reach 320,000 tonnes of processing capacity in its pilot plant and three additional plants by 2027.

Reno, Nevada-based Aqua Metals announced on December 21 that it has started operations at its pilot recycling plant, extracting battery metals, including lithium , manganese , cobalt , and nickel . Aqua Metals said it “is poised to initiate sales of recycled materials in the first quarter 2023.”

The company uses a version of the hydrometallurgical process that it has named “Li AquaRefining.”

The other commonly used method to recycle lithium batteries is the pyrometallurgical method, which requires a simpler pretreatment consisting mainly of crushing or shredding. It can also be used to recycle a wider range of lithium battery compositions, shapes and sizes.

Elwood City, Pennsylvania-based Inmetco uses the pyrometallurgical method, with the capacity to recycle 6,000 tpy of lithium batteries.

Milford Township, Michigan-based Cirba Solutions uses both the hydrometallurgical and pyrometallurgical methods to extract black mass from various lithium battery chemistries, with the company’s Trail, British Columbia facility recycling lithium-ion, lithium primary and lithium metal batteries.

“We are one of the largest producers of black mass from recycled batteries,” Danielle Spalding, Cirba Solutions vice president of marketing and communications, told Fastmarkets.

Cirba Solutions has two other plants in North America, in Lancaster, Ohio, and Eloy, Arizona — the latter of which the company is expanding to process end-of-life lithium-ion batteries to produce raw materials for new battery cathodes.

“This [facility] is estimated to be operational by the end of 2023,” Spalding said. The company expects to produce enough battery material for 50,000 EVs when the facility reaches full capacity, which the company expects to be able to do “quickly.”

Cirba Solutions was also the recipient of a $75 million grant from the Department of Energy for the expansion of their Lancaster, Ohio facility, which is expected to produce enough battery-grade salts to provide for 200,000 EVs per year when it reaches full capacity in 2026.

Another company using both methods is Redwood Materials , which recycles more than 6 GWh of lithium-ion batteries annually in its Nevada facility.

The ‘direct method’: from batteries to precursors

A third method, called the “direct method,” does separate black mass into its components, but requires the addition of materials to reach the optimum chemistry.

While it is a much faster and more cost-effective way to recycle lithium batteries that requires less energy, the direct method also requires separate disassembly and material separation of lithium batteries.

In North America, the direct method is used by Princeton-based NuEnergy ; Westborough, Massachusetts-based Ascend Elements (formerly Battery Resourcers); and Bend, Oregon-based OnTo Technology LLC.

Ascend Elements extracts black mass from lithium nickel manganese cobalt (NMC) batteries at its Covington, Georgia facility, which became operational in August 2022. It is ramping up to full capacity, which is expected to be reached in March 2023.

Instead of extracting metals from black mass, the company’s hydro-to-cathode process extracts the impurities, leaving the metals in the solution as cathode molecules. Ascend Elements then adjusts the metal or elemental composition of the solution, providing a precursor that is ready to be made into cathodes, Frey explained.

The company is applying this process in two demonstration-scale facilities in Massachusetts and Michigan.

“We need to recover critical battery materials used in lithium-ion batteries and gigafactory scrap. As a country, we need to build an extensive lithium battery recycling infrastructure and make cathode material in the US,” Frey said.

The next step

The past year also saw companies in the lithium battery recycling field in the US announce investments in the next step of EV battery production: CAM precursor and CAM manufacturing.

At present, there are no facilities in the US that manufacture CAM, which means the product obtained from recycling has to be shipped overseas, and then returned as CAM components.

“Currently, anode and cathode components are not produced in North America, and battery cell manufacturers have to source them via a 50,000+ mile global supply chain,” Redwood Materials said on December 14, announcing that the company will be building their next Battery Materials Campus in South Carolina.

The facility will recycle, refine and manufacture anode and cathode components. Redwood plans to break ground on the facility in the first quarter of 2023 and anticipates the start of operations by the end of the year.

The company expects to produce 100 GWh of cathode and anode components per year when the facility reaches full capacity.

Redwood is not the only recycler to invest in this next step of EV battery manufacturing. Ascend Elements announced in August that it would build a battery cathode manufacturing facility in Hopkinsville, Kentucky.

Frey said the company expects the facility to become operational in the first quarter of 2024, ramping up in the following four quarters to reach full capacity serving 250,000 EVs per year.

Ascend Elements also received two grants from the Department of Energy, totaling $480 million. The company plans to use these funds to support an increased investment — to $1 billion — in the Hopkinsville facility.

“Localizing the production of critical battery components and ensuring these materials are recycled is the only way to drive down costs, emissions and geopolitical risks while meeting US battery and electrification demand,” Redwood said.

Visit our dedicated battery raw materials page to discover more insights on the factors at play in the industry in 2023 and beyond. Find out more about our lithium prices.

We’re Hiring!

The Current

• Aqua Metals: Funding to Fuel the Future of Sustainable Lithium Battery Recycling
• June 4, 2024

At Aqua Metals, our commitment to revolutionizing lithium battery recycling through sustainable and innovative technology is unwavering. Recent fundraising efforts have not only provided essential capital but have also underscored the strong confidence that the investor community has in our vision. As we continue to drive forward with our mission, we are pleased to share some exciting updates and insights into how these investments are propelling us toward a more sustainable future.

Strengthening Our Financial Position

In a significant move to bolster our financial health, Aqua Metals recently closed an oversubscribed public stock offering , raising $8.05 million. This successful fundraising effort is a testament to the investor community’s belief in our transformative technology and robust business model. The raised capital will ensure we have sufficient cash on hand, a crucial requirement to secure an up to $33 million loan from one of the world’s largest companies, which is a pivotal step in our journey.

This strategic loan agreement is a non-dilutive financing option that underscores the confidence and validation from major global investors. The due diligence conducted by the lender included a comprehensive review of our intake and offtake contracts, financial model, and the independent engineering study by ICF International. This rigorous review process confirms the feasibility and sustainability of our operations and our potential for substantial growth in the clean energy sector.

Advancing Our Mission with Strong Investor Confidence

The overwhelming response to our public offering highlights the growing recognition of Aqua Metals as a leader in the lithium battery recycling industry. Investors are increasingly aware of the critical role our technology plays in creating a circular economy for battery materials. By utilizing our proprietary AquaRefining™ process, we can recover valuable metals from spent lithium-ion batteries with minimal environmental impact, significantly reducing waste and emissions compared to traditional recycling methods.

This influx of capital not only secures our financial footing but also enables us to accelerate the buildout of our Sierra AquaRefining Recycling Campus (ARC). The Sierra ARC will be the first commercial-scale facility of its kind in North America, designed to process black mass from spent lithium batteries efficiently and sustainably. The completion of this facility is a critical milestone in our strategic plan to scale our operations and meet the increasing demand for recycled battery materials.

Pursuing Additional Funding Opportunities

While the recent capital raise and loan agreement are significant milestones, Aqua Metals remains committed to exploring diverse funding avenues to further accelerate our growth. We are actively pursuing grant opportunities from the federal government, including those focused on clean energy and sustainable technologies. Securing these grants will provide additional resources to enhance our technological capabilities and expand our operational footprint.

Federal grants are particularly important as they align with our mission to support the national agenda for clean energy transition and economic sustainability. By leveraging these opportunities, we aim to reinforce our leadership position in the industry and contribute to the broader goal of achieving a carbon-neutral future.

Vision For the Future

At Aqua Metals, our vision extends beyond financial success; we are driven by the goal of creating a sustainable and circular supply chain for lithium batteries. The investments and support we have garnered are not just a vote of confidence in our current capabilities but also a recognition of the potential impact we can have on the global clean energy landscape .

Our innovative approach to lithium battery recycling addresses the critical need for sustainable solutions in the face of increasing environmental challenges. By providing a cleaner, more efficient method of recovering valuable materials from spent batteries , we are paving the way for a greener future. This aligns with the growing demand for sustainable practices across industries and supports the transition to a low-carbon economy.

The recent fundraising efforts and strategic loan agreement mark a pivotal moment for Aqua Metals. These achievements are a testament to the strong confidence the investor community has in our vision and technology. With the necessary capital secured, we are well-positioned to advance our mission of sustainable lithium battery recycling and contribute to the broader goal of a circular economy.

As we continue to innovate and expand, we remain focused on our core mission: to provide sustainable, high-purity battery materials that support the global clean energy transition. Aqua Metals is committed to leading the way in creating a more sustainable future, and we are grateful for the continued support and trust from our investors, partners, and stakeholders.

For more updates and information, stay tuned to our press releases ( https://ir.aquametals.com/press-releases ) and follow our journey as we make strides towards a cleaner, greener world.

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Li-Cycle Partners with Daimler Truck North America on Recycling Lithium-ion Batteries

Li-Cycle continues to support DTNA on its goal of integrating a comprehensive circular economy approach across its operations

Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Company”), a leading global lithium-ion battery resource recovery company, is proud to support Daimler Truck North America (DTNA) on its goal to integrate a comprehensive circular economy approach across its operations to reduce its carbon footprint.

Li-Cycle and DTNA have a partnership to recycle lithium-ion batteries from DTNA electric vehicles that reach the end of their life cycle. Recycling lithium-ion batteries is part of DTNA’s plans to maximize battery lifespans and reduce material waste to tackle global sustainability challenges. DTNA’s strategy emphasizes repairing, remanufacturing, repurposing, and recycling lithium-ion battery materials.

“We are proud to partner with companies such as DTNA to support their sustainability and carbon reduction goals,” said Ajay Kochhar, Li-Cycle President and CEO. “Our environmentally friendly and safe recycling technologies can recover critical materials to help create a domestic closed-loop battery supply chain, giving new life to these battery materials and helping power the world’s transition to clean energy.”

About Li-Cycle Holdings Corp.

Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company. Established in 2016, and with major customers and partners around the world, Li-Cycle’s mission is to recover critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. The Company leverages its innovative, sustainable and patent-protected Spoke & Hub Technologies™ to recycle all different types of lithium-ion batteries. At our Spokes, or pre-processing facilities, we recycle battery manufacturing scrap and end-of-life batteries to produce black mass, a powder-like substance which contains a number of valuable metals, including lithium, nickel and cobalt. At our future Hubs, or post-processing facilities, we plan to process black mass to produce critical battery-grade materials, including lithium carbonate, for the lithium-ion battery supply chain. For more information, visit https://li-cycle.com/ .

About Daimler Truck North America

Daimler Truck North America LLC, headquartered in Portland, Oregon, is a leading provider of comprehensive products and technologies for the commercial transportation industry. Daimler Truck North America designs, engineers, manufactures and markets medium- and heavy-duty trucks, school buses, vehicle chassis and their associated technologies and components under the Freightliner, Western Star, Thomas Built Buses, Freightliner Custom Chassis Corp and Detroit brands. Daimler Truck North America is a subsidiary of Daimler Truck Holding AG (DTG), one of the world’s leading commercial vehicle manufacturers.

Forward-Looking Statements

Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as “believe”, “may”, “will”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “could”, “plan”, “potential”, “future”, “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: Li-Cycle continued support for DTNA on its goal of integrating a comprehensive circular economy approach across its operations and DTNA’s plans to maximize battery lifespans and reduce material waste to tackle global sustainability challenges. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the processing capacity and production of Li-Cycle’s facilities. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.

These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.

Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle’s inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle’s inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub as anticipated or at all, and other future projects including its Spoke network expansion projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle's history of losses and expected significant expenses for the foreseeable future as well as additional funds required to meet Li-Cycle’s liquidity needs and capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; risk and uncertainties related to Li-Cycle’s ability to continue as a going concern; uncertainty related to the success of Li-Cycle’s Cash Preservation Plan and related past and expected near-term further significant workforce reductions; Li-Cycle's inability to attract, train and retain top talent who possess specialized knowledge and technical skills; Li-Cycle’s failure to oversee and supervise strategic review of all or any of Li-Cycle’s operations and capital project and obtain financing and other strategic alternatives; Li-Cycle’s ability to service its debt and the restrictive nature of the terms of its debt; Li-Cycle's potential engagement in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle's current or future facilities becoming inoperative, capacity constrained or disrupted, or lacking sufficient feed streams to remain in operation; the potential impact of the pause in construction of the Rochester Hub on the authorizations and permits granted to Li-Cycle for the operation of the Rochester Hub and the Spokes on pause; the risk that the New York state and municipal authorities determine that the permits granted to Li-Cycle for the production of metal sulphates at the Rochester Hub will be impacted by the change to MHP and the reduction in scope for the project; Li-Cycle's failure to materially increase recycling capacity and efficiency; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to maintain and increase feedstock supply commitments as well as secure new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for “green” energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle’s products; changes in the volume or composition of feedstock materials processed at Li-Cycle’s facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle’s expected revenues for the Rochester Hub are expected to be derived significantly from a limited number of customers; uncertainty regarding the sublease agreement with Pike Conductor Dev 1, LLC related to the construction, financing and leasing of a warehouse and administrative building for the Rochester Hub; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavorable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle’s intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle may be subject to cybersecurity attacks, including, but not limited to, ransomware; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or its failure to develop and maintain a proper and effective internal control over financial reporting; the potential for Li-Cycle’s directors and officers who hold Company common shares to have interests that may differ from, or be in conflict with, the interests of other shareholders; and risks related to adoption of Li-Cycle’s shareholder rights plan and amendment to the shareholder rights plan and the volatility of the price of Li-Cycle’s common shares. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the section entitled "Item 1A. Risk Factors" and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation—Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement.

Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle’s assessments as of any date subsequent to the date of this press release.

Investor Relations & Media

Louie Diaz Sheldon D'souza

Investor Relations: [email protected] Media: [email protected]

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530143182/en/

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Atoka gains a new business, but is 'black mass' it processes at recycling plant safe?

A "green" company based in Singapore has opened in southeast Oklahoma what it says is North America's first commercial-scale lithium-ion battery recycling plant with no need to export depleted material, so-called "black mass" , to China or elsewhere overseas for processing first.

Green Li-ion, which also has offices in Houston, Australia, Germany and South Korea, called it an "historic breakthrough in battery recycling." It uses the company's patented Green-hydrorejuvenation technology , which it offers as a service and also intends to license to manufacturers and other battery recycling businesses.

The company said the plant in Atoka is expected to produce recycled material equal to 72,000 smartphone batteries per day, and to quadruple production within a year.

“Green Li-ion’s installation closes a critical gap in the North American battery recycling supply chain,” Leon Farrant, CEO and co-founder, said in a news release. “Electrification will require manufacturers to exert greater control over their critical mineral supplies. We aim to show American companies the benefits of a customizable and fully vertically integrated battery recycling solution when operating as part of an existing manufacturing process.”

Farrant told The Oklahoman that Atoka, 130 miles southeast of Oklahoma City, was the right place for it.

Why did Green Li-ion in Singapore pick Atoka, Oklahoma, for a lithium-ion battery recycling plant?

Farrant said Atoka is a hub for industrial metals recycling, but Oklahoma's business climate made the city of 3,200 more inviting.

"Oklahoma’s business-friendly policies and its position at the center of the country’s resurging manufacturing industry align perfectly with Green Li-ion’s technology design for integration within existing facilities and our focus on onshoring the battery recycling industry in the U.S.," he said. "Green Li-ion chose Atoka as the location of its first North American operation because of the city's background as a hub for industrial metals recycling, which aligned with our company's mission."

The plant is in Atoka's Heavy Industrial Park, operated by the Atoka City Industrial Development Authority , which said Green Li-ion is creating 17 jobs paying from $35,000 to $120,000 annually, and is poised for rapid growth.

Atoka is benefiting from federal spending and Oklahoma's business climate, said Stephen Hayward, vice president of operations at Green Li-ion.

“Our plant in Atoka is a glimpse into the future of the battery recycling industry in North America,” he said. “The Inflation Reduction Act and business-friendly policies in Oklahoma have spurred innovation, and the state is proving to be the center of the re-growing manufacturing industry in the U.S.

"We aim to show original equipment manufacturers, diversified industrials with a battery recycling business unit, and pure-play recyclers how working with Green Li-ion technology can help them capitalize on the trend toward electrification.”

Green Li-ion is seen as a community partner in Atoka Heavy Industrial Park, said Carol Ervin, director of the Atoka City Industrial Development Authority.

“By using local suppliers and vendors and working with the (Kiamichi) Technology Center, they have made a substantial contribution to the expansion of the private sector and job opportunities in Atoka,” she said.

Atoka's Heavy Industrial Park received $3 million of nearly $250 million in state and federal funding granted by the Legislature in 2022 for economic development. The allocation included money from the state PREP fund, for Preserving Rural Economic Prosperity, and ARPA, the American Rescue Plan Act.

Atoka City Industrial Development Authority responds to concerns over the environmental impact of GreenLi-ion battery recycling plant

In response to residents' concerns over potential impact on the environment, expressed on Facebook, the Atoka City Industrial Development Authority said that Green Li-ion's processes require the lowest level of regulation by the Environmental Protection Agency.

"We strive to keep our EPA permits at or below EPA Tier 1 at our Heavy Industrial Park, which is the lowest EPA permit," the authority said. "Green Li-ion's process has passed all permits and their process does not require additional air-quality permits.

"Keep in mind that almost every town has a Tier 3 permit. They are required for processing solid waste sludge (sewage). Green Li-ion's goal is to reduce pollution and they are doing that in Atoka while bringing in jobs."

How GreenLi-ion's battery recycling process is different from current practices

Green Li-ion explained its process and how it's different from current industry practices.

"The current recycling process for spent lithium-ion batteries in North America includes sorting batteries before shredding, which are then processed into 'black mass' and further into sulfates," the company said in a news release. "The material is then exported overseas, most often to China and South Korea, for further processing.

"Green Li-ion’s patented technology utilizes a novel and advanced hydrometallurgical approach that closes the recycling loop by directly converting recycling scrap into battery-grade precursor cathode active material — pCAM — without being exported for further processing."

Chemical giant BASF explains the "black mass" process :

"Lithium-ion batteries are composed of metals including lithium, manganese, cobalt, and nickel. Once a battery reaches the end of its useful life, the battery pack can be collected, dismantled, and shredded. The shredded material is then processed to produce so-called 'black mass,' which consists of high amounts of lithium, manganese, cobalt, and nickel metals. These critical materials can then be extracted from the black mass and re-used in new battery production."

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This article originally appeared on Oklahoman: Atoka gains a new business, but is 'black mass' it processes at recycling plant safe?

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LITHION TECHNOLOGIES COMPLETES THE CONSTRUCTION OF ITS FIRST COMMERCIAL PLANT

AND CONFIRMS THE SIGNING OF STRATEGIC MULTI-YEAR COMMERCIAL AGREEMENTS

MONTREAL (Quebec), June 3 rd , 2024 – Lithion Technologies (Lithion), a company that develops, deploys, and operates sustainable and innovative patented technologies to recycle lithium-ion batteries and create a circular supply of their strategic materials, announces the completion of the construction of its first commercial critical mineral extraction plant, Lithion Saint-Bruno, located in St-Bruno-de-Montarville, near Montreal, in Canada.

Over the past several months, its team worked tirelessly to build the first lithium-ion battery critical mineral extraction plant in North America’s north-east. Every piece of equipment has been installed, many of which were tailor-made to suit its unique technologies and processes. The company is now in the commissioning phase to ensure its innovative and patented processes operate safely and effectively. Lithion Saint-Bruno has a team of 20 Lithioneers, with the company’s mission to heart, to complete this important step. At full capacity, the plant will employ 60 people.  

During the plant construction, Lithion’s commercial activities progressed significantly with the signing of multi-year battery feedstock agreements, and the receipt of several batteries. The first battery treatment steps, such as dismantling, have also started. These strategic agreements involve local partners as well as large Canadian, American, and international corporations, all part of the electric vehicle ecosystem. More partnership discussions, as well as the continuous influx of recycling demands, confirm the critical and essential need Lithion meets.

This facility is the first of many to be built to make Lithion’s vision of enabling the whole world to be powered by the greenest batteries available a reality. The opening of a storage facility based in the USA will soon follow and discussions are underway between Lithion and business partners to deploy plants like Lithion Saint-Bruno in that country. Thanks to its expertise in transborder transportation and logistics, Lithion will supply its plants from that storage location while providing its partners a turnkey service, solving for them a complex and costly facet of lithium-ion battery recycling. A similar strategy is in action in Europe.

To create the circularity of battery materials, Lithion has developed a two-step recycling process with an environmental impact significantly smaller than mining. The first step, performed at Lithion Saint-Bruno, is the extraction of the critical minerals concentrate, or black mass, from batteries and non-conforming products from their production. Black mass is made of lithium, nickel, cobalt, manganese, and graphite.

The second step is a hydrometallurgy process to separate and purify the black mass to produce strategic materials of the highest purity so they can be looped back into the production of new batteries. We are currently in the process of selecting the site for this plant.

“What an exciting achievement to have completed the construction of our first commercial plant”, expressed Benoit Couture, President and CEO of Lithion. “It’s a major milestone towards the realization of our dream of sustainably closing the loop of battery materials. And this is just the beginning. We will build more recycling plants, supplied by a network of battery collection and storage facilities, across Canada, the United States, and Europe to ensure the energy transition is a sustainable solution for the generations to come.”

“Today, we’re adding a new link to our integrated battery value chain. From mining to recovery, Québec stands out for producing the greenest battery in the world. The inauguration of the first commercial plant for Québec-based Lithion Technologies strengthens our industry and opens the door to a battery circular economy in Québec,” stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region.

“To ensure circularity and reduce pressure on resources and the environment, the energy transition underway in Quebec requires the creation of a value chain for our critical materials. I am happy to see the end of the construction phase of Lithion’s factory, which will ensure the recovery of electric batteries, and also salute the innovation demonstrated by the company » said Benoit Charette, Minister of the Environment, the Fight Against Climate Change, Wildlife and Parks, and Minister responsible for the Laurentides Region

“Thanks to its strategic location, Saint-Bruno-de-Montarville has become a central hub in the North American supply chain, attracting innovative and ambitious companies, such as Lithion Technologies, that bring high-quality jobs here,” shared Ludovic Grisé Farand, Mayor of Saint-Bruno-de-Montarville.

About Lithion Technologies

Lithion has developed a sustainable, robust, and safe solution to produce strategic materials from end-of-life lithium-ion batteries and non-conforming products from their production. Lithion’s technologies enable the recovery of up to 95% of battery components, with an environmental impact significantly smaller than that of mining, to loop them back into the battery supply chain. Using Lithion’s sustainable technologies and processes reduces the demand for natural resource extraction, making the energy transition a sustainable solution. Lithion’s objective is the global deployment of its solutions via strategic partnerships. For more information, visit: www.lithiontechnologies.com .

Source: Lithion Technologies

For more informations:

Casacom, Public relations

Mathilde St-Vincent, Senior Director business communications & Associate

514-242-6852

ESF and ReMA Partner to Promote Lithium-Ion Battery Recycling

ARLINGTON, Va., June 04, 2024 (GLOBE NEWSWIRE) -- The Electrical Safety Foundation (ESF) and the Recycled Materials Association (ReMA), formerly the Institute of Scrap Recycling Industries (ISRI), are partnering on a campaign to promote lithium-ion battery recycling. The goal of the campaign is to educate the public on how to purchase, use, and recycle lithium-ion batteries safely.

Materials created for the campaign include:

• ESF & ReMA Damaged EV Battery: Lithium-Ion Battery Safety
• ESF & ReMA First Responder Safety - How to Extinguish: Lithium-Ion Battery Safety
• ESF & ReMA First Responder Safety: Lithium-Ion Battery Safety
• ESF & ReMA How to Recycle Batteries: Lithium-Ion Battery Safety
• ESF & ReMA How to Spot Battery Problems: Lithium-Ion Battery Safety
• ESF & ReMA How to Store and Charge Batteries: Lithium-Ion Battery Safety
• ESF & ReMA Importance of Proper Recycling: Lithium-Ion Battery Safety

Lithium-ion batteries power countless devices in our homes and workplaces. They can be found in cell phones, tablets, laptops, toothbrushes, electric bikes, and electric scooters, along with other regularly used devices. When purchased and used correctly, lithium-ion batteries are safe, but there is a risk of fire and injury if uncertified batteries or chargers are used.

ESF and ReMA are educating consumers about the importance of recycling lithium-ion batteries at the end of their lifecycle. There has been a 41% increase in catastrophic losses at recycling facilities. These batteries must be recycled safely, rather than placed in regular waste and recycling bins, as they will likely catch fire. Recycling helps the environment and is the safest and most efficient way to process a battery at its end of life.

“ESF is proud to partner with ReMA on this important initiative,” said ESF President Brett Brenner. “The distribution of the resources for this campaign will help to put a stop to unnecessary fires from occurring at material recovery facilities.”

Also included in the campaign materials is an infographic for transportation professionals to assist with electric vehicle battery identification and transportation after damage, as well as infographics for first responders to assist them in identifying lithium-ion battery fires and how to safely extinguish them.

“Batteries are everywhere - and so is the potential for serious fire,” said ReMA Senior Director of Safety Jerry Sjogren. “With proper labeling, consumer education and a clear and easy path to the specialized recycling facilities, lithium-ion batteries can be safely handled and recycled.”

By recycling lithium-ion batteries, the valuable materials in them will be reused and prevent avoidable fires from occurring. For ESF’s complete collection of free lithium-ion battery safety materials, visit  esfi.org . For more information on ReMA, visit recycledmaterials.org . To find a lithium-ion battery recycling location nearest you, visit Call2Recycle.org .

ABOUT ESF The Electrical Safety Foundation (ESF) is the trusted voice for electrical safety. The mission of ESFI is to prevent electrically-related injuries, deaths, and fires; saving lives and property through public education and outreach. For free workplace safety materials, you can share throughout your community, visit  esfi.org .

ABOUT ReMA The Recycled Materials Association (ReMA) represents more than 1,700 companies in the U.S. and 40 countries around the globe. Based in Washington, D.C., ReMA provides advocacy, education, safety and compliance training, and promotes public awareness of the vital role recycled materials play in the U.S. economy, global trade, the environment and sustainable development. For more information, visit recycledmaterials.org .

Brianne Deerwester Electrical Safety Foundation 703.841.3295 [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8bc98750-a269-4a5c-87a3-6f678db7e28d

Governor Katie Hobbs Visits Li-Cycle’s Lithium-Ion Battery Recycling Facility in Arizona

Li-Cycle Holdings Corp. (NYSE: LICY) (“Li-Cycle” or the “Company”), an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, was honoured to host Katie Hobbs, the Governor of Arizona, at the Company’s lithium-ion battery recycling facility located in Gilbert, Arizona.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230629351795/en/

Arizona Governor Katie Hobbs and Li-Cycle Co-Founder and Executive Chair Tim Johnston at the company’s Spoke facility in Gilbert, Arizona discussing Li-Cycle’s sustainable and safe process to recycle lithium-ion batteries. (Photo: Business Wire)

During the visit, the Governor was joined by Tim Johnston, Li-Cycle’s co-founder and Executive Chair, for a tour of Li-Cycle’s Spoke facility, which leverages innovative technology to recycle lithium-ion battery materials. The Company’s proprietary submerged shredding recycling process has the capability to process full electric vehicle (EV) and energy storage battery packs without any manual disassembly or discharging, and can recycle all types of lithium-ion battery materials regardless of chemistry or form factor.

Li-Cycle’s Arizona Spoke facility, which can recycle up to of 18,000 1 tonnes of lithium-ion battery material per year, is expected to play a key role in building a clean energy future in the U.S. and support the continued growth of the expanding lithium-ion battery supply chain in the state. During the visit and tour, the leaders exchanged views on the importance of safe, efficient, and environmentally friendly battery recycling and the clean tech industry in Arizona.

"Li-Cycle's lithium-ion battery recycling is critical to powering our future economy, and their Gilbert facility is a large part of our blossoming clean tech and manufacturing ecosystem in the East Valley,” said Governor Katie Hobbs. “This company is yet another example of how Arizona is a leader in green manufacturing, and is building a robust clean energy economy.”

“We were delighted to have the opportunity to host Governor Hobbs at our Spoke facility in Gilbert, Arizona and showcase our safe, sustainable and innovative technology for recycling lithium-ion battery material,” said Tim Johnston, co-founder and Executive Chair of Li-Cycle. “Li-Cycle continues to play a key role in driving the growth of a more sustainable battery ecosystem and EV supply chain in Arizona and across the U.S. We are excited to continue working closely with the local community to build a cleaner, domestic supply chain of key battery-grade materials to support the transition to electrification.”

About Li-Cycle Holdings Corp.

Li-Cycle (NYSE: LICY) is a leading global lithium-ion battery resource recovery company and North America’s largest pure-play lithium-ion battery recycler, with a rapidly growing presence across Europe. The Company leverages its innovative, sustainable and patented Spoke & Hub Technologies ™ to provide a safe, scalable, customer-centric solution to recycle all different types of lithium-ion batteries. Established in 2016, and with major customers and partners around the world, Li-Cycle recovers critical battery-grade materials to create a domestic closed-loop battery supply chain for a clean energy future. For more information, visit https://li-cycle.com/ .

Forward-Looking Statements

Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U.S. Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements may generally be identified by the use of words such as “believe”, “may”, “will”, “continue”, “anticipate”, “intend”, “expect”, “should”, “would”, “could”, “plan”, “potential”, “future”, “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements in this press release include but are not limited to statements about: the expectation that Li-Cycle’s Arizona Spoke facility will play a key role in building a clean energy future in the U.S. and support the continued growth of the expanding lithium-ion battery supply chain in the state; the expectation that Li-Cycle will continue to play a key role in driving the growth of a more sustainable battery ecosystem and EV supply chain in Arizona and across the U.S.; and the expectation that Li-Cycle will continue working closely with the local community to build a cleaner, domestic supply chain of key battery-grade materials to support the transition to electrification. These statements are based on various assumptions, whether or not identified in this communication, including but not limited to assumptions regarding the timing, scope and cost of Li-Cycle’s projects; the processing capacity and production of Li-Cycle’s facilities; Li-Cycle’s ability to source feedstock and manage supply chain risk; Li-Cycle’s ability to increase recycling capacity and efficiency; Li-Cycle’s ability to obtain financing on acceptable terms; Li-Cycle’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners; general economic conditions; currency exchange and interest rates; compensation costs; and inflation. There can be no assurance that such estimates or assumptions will prove to be correct and, as a result, actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements.

These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.

Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle, and are not guarantees of future performance. Li-Cycle believes that these risks and uncertainties include, but are not limited to, the following: Li-Cycle’s inability to economically and efficiently source, recover and recycle lithium-ion batteries and lithium-ion battery manufacturing scrap, as well as third party black mass, and to meet the market demand for an environmentally sound, closed-loop solution for manufacturing waste and end-of-life lithium-ion batteries; Li-Cycle’s inability to successfully implement its global growth strategy, on a timely basis or at all; Li-Cycle’s inability to manage future global growth effectively; Li-Cycle’s inability to develop the Rochester Hub, and other future projects including its Spoke network expansion projects in a timely manner or on budget or that those projects will not meet expectations with respect to their productivity or the specifications of their end products; Li-Cycle’s failure to materially increase recycling capacity and efficiency; Li-Cycle may engage in strategic transactions, including acquisitions, that could disrupt its business, cause dilution to its shareholders, reduce its financial resources, result in incurrence of debt, or prove not to be successful; one or more of Li-Cycle’s current or future facilities becoming inoperative, capacity constrained or if its operations are disrupted; additional funds required to meet Li-Cycle’s capital requirements in the future not being available to Li-Cycle on acceptable terms or at all when it needs them; Li-Cycle expects to continue to incur significant expenses and may not achieve or sustain profitability; problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect Li-Cycle’s operations; Li-Cycle’s inability to maintain and increase feedstock supply commitments as well as securing new customers and off-take agreements; a decline in the adoption rate of EVs, or a decline in the support by governments for “green” energy technologies; decreases in benchmark prices for the metals contained in Li-Cycle’s products; changes in the volume or composition of feedstock materials processed at Li-Cycle’s facilities; the development of an alternative chemical make-up of lithium-ion batteries or battery alternatives; Li-Cycle’s revenues for the Rochester Hub are derived significantly from a single customer; Li-Cycle’s insurance may not cover all liabilities and damages; Li-Cycle’s heavy reliance on the experience and expertise of its management; Li-Cycle’s reliance on third-party consultants for its regulatory compliance; Li-Cycle’s inability to complete its recycling processes as quickly as customers may require; Li-Cycle’s inability to compete successfully; increases in income tax rates, changes in income tax laws or disagreements with tax authorities; significant variance in Li-Cycle’s operating and financial results from period to period due to fluctuations in its operating costs and other factors; fluctuations in foreign currency exchange rates which could result in declines in reported sales and net earnings; unfavorable economic conditions, such as consequences of the global COVID-19 pandemic; natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, cyber incidents, boycotts and geo-political events; failure to protect or enforce Li-Cycle’s intellectual property; Li-Cycle may be subject to intellectual property rights claims by third parties; Li-Cycle’s failure to effectively remediate the material weaknesses in its internal control over financial reporting that it has identified or if it fails to develop and maintain a proper and effective internal control over financial reporting. These and other risks and uncertainties related to Li-Cycle’s business are described in greater detail in the section entitled “Risk Factors” and “Key Factors Affecting Li-Cycle’s Performance” in its Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada. Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Actual results could differ materially from those contained in any forward-looking statement.

Li-Cycle assumes no obligation to update or revise any forward-looking statements, except as required by applicable laws. These forward-looking statements should not be relied upon as representing Li-Cycle’s assessments as of any date subsequent to the date of this press release.

______________________ 1 Total processing capacity includes main line and ancillary processing.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230629351795/en/

Investor Relations Nahla A. Azmy Sheldon D’souza [email protected]

Media Louie Diaz [email protected]

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