2023-08-22 19:27:00
According to a study, it would take more than 9 billion euros by 2035 to set up a satisfactory sector in the European Union to recycle lithium-ion batteries.
570,000 tonnes of materials per year
This estimate is due to a collaboration between the Production Engineering of E-Mobility Components (PEM) chair at RWTH Aachen University and the consulting firm PwC Strategy&. The results of the study on the European battery recycling market were released shortly before the entry into force of the updated EU Battery Regulation.
The authors assert that in Due to high investment costs, the current structure of the value chain will evolve into large recycling centers “. After an initial overcapacity phase, “ the recycling market will be fully exploited from 2030 ».
The amount of the investment is estimated at more than 2.2 billion euros to deal with the annual treatment of approximately 570,000 tons of battery materials. Director of the PEM, Professor Achim Kampker is convinced: “ The general increase in electrification and growing production of batteries due to electric mobility will drive the recycling market in Europe ».
2.2 + 7 billion euros
With such a program, however, Europe is not a pioneer in the field. This title goes to South Korea and China, which adopted regulations on this subject in 2013. They therefore have a ten-year head start. From this year 2023, the EU should create legal framework conditions applicable to the whole territory through its revised directive on batteries.
The new text fixes “ higher recovery targets and recycling efficiencies, as well as a minimum proportion of recovered materials in new batteries “. To the 2.2 billion euros will have to be added another seven billion by market players to be able to process all the recyclable materials of lithium batteries from 2035.
One analysis, however, points out that further technological specialization might reduce the overall envelope by regarding half in the best of cases.
Profitability before 2035
A value chain is currently being built, consisting of three segments: preparation, pre-treatment and main processing of battery materials.
By 2035, the forecasts give a share of up to 30% of recycled materials in the demand for lithium, nickel and cobalt. It might be doubled by 2040. On the other hand, the profitability of the activity might occur before 2035.
Follow this link to download the study.
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