Ecobat Sells European Battery Distribution Business to Refocus on Recycling

Ecobat

Strategic Shift Toward Core Battery Recycling Operations

Ecobat, a Texas-based battery recycler, has sold its European battery distribution arm to UK private equity firm Endless as part of a strategy to divest non-core assets. The divested division supplied a broad range of batteries for automotive, commercial, marine, leisure, and industrial markets. While financial terms remain undisclosed, the move underscores Ecobat’s intent to prioritize its core battery recycling operations across the US, UK, and Germany.

Market Pressures and Recycling Industry Challenges

Ecobat’s three lithium battery recycling facilities have a combined processing capacity of up to 10,000 metric tonnes per year. However, the battery recycling sector faces significant headwinds. Slower-than-expected electric vehicle (EV) adoption has limited the availability of end-of-life battery feedstock, while a growing shift toward lithium iron phosphate (LFP) batteries — which contain fewer high-value metals like cobalt and nickel — has reduced the economic incentive for recycling. This market pressure has already impacted competitors, as demonstrated by Canadian recycler Li-Cycle’s recent bankruptcy protection filing in both Canada and the US.

The Metalnomist Commentary

Ecobat’s divestment aligns with an industry trend of focusing resources on profitable, technology-driven recycling operations rather than lower-margin distribution businesses. As the EV market evolves and LFP battery adoption accelerates, recyclers will need to adapt their business models to remain competitive. Partnerships with battery producers and innovation in material recovery technology may be crucial for long-term success.