The battery recycling market is entering a new stage of professionalisation and scale, says Renee Ju.

With the rapid development of the EV industry in recent years, a wave of retired power batteries is imminent. Additionally, as the capacity of li-ion batteries increases, the amount of scrap batteries in battery production is also rising fast, making battery recycling a focal point for the market.

Interact Analysis’ upcoming report “Li-ion Battery and Manufacturing Equipment” provides a deep analysis of the current battery recycling market, and this insight explores some of the key themes in the report.

Li-ion companies are leading the battery recycling market

Manufacturers that establish recycling businesses come from across the battery industry chain, including upstream raw mineral and material suppliers, midstream battery manufacturers, vehicle OEMs and businesses specialising in battery recycling. In China, there are fewer large-scale companies that specialise in lithium battery recycling and currently companies with battery recycling plants tend to be manufacturers from elsewhere in the lithium battery industry chain. In contrast, in other major country markets the li-ion battery recycling market is dominated by large-scale recycling manufacturers that specialise in recycling businesses, such as Li-cycle. Other companies in the lithium battery industry chain predominantly participate in the battery recycling market through collaboration with recycling companies.

Aside from signing cooperative research agreements, cooperation on battery recycling among companies in the lithium battery industry chain usually takes the form of signing supply agreements. These can be divided into directional supply and establishing a closed-loop recycling ecosystem. Directional supply involves OEMs and battery manufacturers supplying scrap batteries or scrap materials to recycling companies, and recycling companies supplying recycled materials obtained from processing scrap batteries to raw material manufacturers.

In contrast, some companies collaborate with the aim of establishing a closed-loop recycling ecosystem. If we take the collaboration announced by GEM in February 2023 with Mercedes-Benz China, CATL, and Brunp as an example: Mercedes-Benz China’s retired waste batteries will be processed by GEM and Brunp, with the recycled key raw materials such as nickel, cobalt, manganese, and lithium supplied to CATL’s supply chain and used to produce new batteries for Mercedes-Benz. The cooperation in battery recycling between upstream and downstream companies in the lithium battery industry chain not only meets environmental protection requirements but also maximises battery value and reduces battery production costs.

Some non-lithium battery-related companies are also exploring the battery recycling business

Some companies whose main operations are not directly related to batteries are also exploring the market for battery recycling, such as sanitation companies and other recycling enterprises (including those specialising in metal recycling and solid waste recycling). Typically, these companies run the battery recycling businesses through collaboration with lithium battery-related companies, with the recycling business supplying the products of their recycling plants to raw material manufacturers for further application in the lithium battery industry and for use in other industries. For example, the recycled nickel, cobalt, and tungsten powders can be utilised in the production of hard alloys, rather than being directly used in the production of lithium battery-related products.

Final thoughts

With the rapid expansion of lithium battery capacity and the imminent wave of retired power batteries, recycling has become a safe, environmentally friendly, and economical way to dispose of scrap batteries and raw materials. As relevant policies and regulations are continuously improved and implemented by different countries, the battery recycling market is entering a new stage of professionalisation and scale, with market opportunities continuously emerging. As a restructuring of the industry ecosystem takes place, optimising resource allocation, strengthening technological research and development, accelerating upstream and downstream collaboration, and promoting the integration of the industrial chain may become the keys to success.

Renee Ju is Research Associate at Interact Analysis. Renee focuses on lithium battery and hydrogen research, assists commercial vehicle teams in database setup, and conducts both primary and secondary information research for data and industry analysis.

Amara Raja inaugurates Battery Pack Plant at its Gigacorridor

Amara Raja Advanced Cell Technologies (ARACT), a wholly owned subsidiary of the Amara Raja Energy & Mobility Limited (ARE&M), one of India’s leading industrial and automotive battery majors, held a grand groundbreaking ceremony for their Customer Qualification Plant (CQP) for cell manufacturing and the foundation stone laying ceremony at Divitipally, Mahabubnagar district.

The event was attended by distinguished guests, including Steven Cai, Board member and President EMEA; Diego Graffi, CMD Piaggio Vehicles India, Ashish Jangale, VP and Head SSU Mahindra & Mahindra, Swapnil Jain, Co-founder Ather Energy, Jayadev Galla, Chairman and Managing Director, ARE&M; and Harshavardhana and Vikramadithya Gourineni, Executive Directors of ARE&M; along with other dignitaries from the government and industry.

Phase 1 of the battery pack plant was inaugurated with a current capacity of 1.5 GWh. The plant makes Li-ion battery packs specifically suited for Indian conditions and will be supplying to major EV OEMs along with being used for stationary energy storage requirements. The CQP, which is all set to be operational by Q1 of the next financial year, can produce various cell types for customer testing and validation. The project recently received a fillip after ARE&M’s collaboration with Gotion Inobat (GIB) for technology, manufacturing and customised solutions.

The Giga Corridor which is spread across 260 acres of land will entail an investment of Rs 9,500 crore till 2031 and will include the advanced cell manufacturing Gigafactory along with battery pack facility. In addition, the company is also building a first-of-its-kind advanced energy research and innovation center in Hyderabad, dubbed the ePositive Energy Labs.

Along with the battery pack plant inauguration and foundation stone laying ceremony of the CQP, Amara Raja signed a Memorandum of Understanding (MoU) with Piaggio. As part of this agreement, Amara Raja will collaborate with Piaggio Vehicles Private Limited to develop and supply LFP (Lithium Iron Phosphate) Lithium-Ion (Li-ion) cells and chargers for its EV 3 Wheelers along with developing cells and battery packs for their upcoming 2-Wheeler offerings, produced locally. It had recently signed a MoU with Ather Energy as well.

On the occasion, Mr Jayadev Galla, Chairman & Managing Director, Amara Raja Energy & Mobility said "At Amara Raja, our mission has always been to build institutions that provide better opportunities for more and more people. Today's groundbreaking ceremony signifies the start of a transformative journey for this region. This is not just a ceremonial milestone but the beginning of our strategic initiative to create sustainable, non-migratory job opportunities for local youth through the Gigacorridor. We are profoundly grateful for the unwavering support of the Telangana Government in this venture."

"We anticipate this initiative will play a crucial role in advancing India's energy transition. Having always been pioneers in adopting new technologies, we take great pride in establishing world-class manufacturing units. The CQP is first of its kind in India and will help us develop the perfect cell chemistry for each customer’s requirement," added Vikramadithya Gourineni, Executive Director, ARE&M. 

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