Japan EU battery recycling alliance aims to cut China dependence

Japan, EU battery alliance

Japan EU battery recycling alliance marks a strategic push to reduce reliance on China in battery materials. The new Japan EU battery recycling alliance brings together key industry groups to strengthen recycling, black mass handling and data sharing. As a result, the Japan EU battery recycling alliance targets a more resilient and transparent battery supply chain across both regions.

Japan EU battery recycling alliance links tech strength and market scale

The Japan EU battery recycling alliance is built around three core industry associations. Japan’s Battery Association for Supply Chain, the European Battery Alliance and Brussels based Recharge have signed an initial agreement. Together, they will cooperate on improving recycling processes, materials flows and supply chain governance.

The agreement covers information exchange on issues such as data sharing and regulatory interpretation. It also includes joint studies on black mass classification, a key bottleneck for cross border recycling flows. Black mass refers to shredded cathode material containing nickel, cobalt and lithium from spent batteries. Therefore, clear definitions and standards for black mass are critical for trade, permitting and ESG compliance.

Japanese officials highlight the importance of combining Japan’s technology strength with Europe’s market size. Japan offers advanced recycling technologies and process know how developed over decades of battery manufacturing. Meanwhile, Europe provides a rapidly growing battery market driven by EV mandates and energy storage deployment. This mix gives the Japan EU battery recycling alliance strong industrial foundations.

Reducing strategic exposure to China dominated battery materials

The Japan EU battery recycling alliance clearly responds to geopolitical supply concerns. Officials from Japan’s trade and industry ministry note that the current battery supply chain depends heavily on one country. Although unnamed, the reference clearly points to China’s dominance in processed lithium, nickel, cobalt and anode materials.

By deepening cooperation, Tokyo and Brussels aim to reduce vulnerability to export controls or political friction. Recycling and black mass trade can partially offset primary supply risks from Chinese refineries and processors. In addition, improved data sharing should help track origin, quality and ESG performance of recovered materials. As a result, the Japan EU battery recycling alliance supports compliance with emerging battery passport and due diligence rules.

The initiative also fits within the broader Japan EU competitiveness alliance launched in July. That framework seeks closer coordination on semiconductors, clean energy, critical minerals and industrial standards. Battery recycling now becomes a visible test case for how quickly the partnership can move from statements to practical projects.

The Metalnomist Commentary

This partnership underlines how recycling is moving from a niche activity to a core pillar of battery security strategy. If the Japan EU battery recycling alliance can harmonise black mass standards and data systems, it will lower barriers for serious cross regional recycling investment. Market participants should watch for pilot projects, joint ventures and regulatory tweaks that follow this initial, largely framework level agreement.

Livium LGES battery recycling deal extends Australia’s circular battery value chain

Livium

The Livium LGES battery recycling deal is expanding Australia’s role in the circular battery economy and black mass supply. Under the renewed Livium LGES battery recycling deal, Livium will process both recalled and end-of-life residential batteries. As a result, the Livium LGES battery recycling deal now runs to 2029 and anchors new growth in Australian black mass output.

Black mass volumes rise as Livium expands feedstock

Livium will continue processing LG Energy Solution batteries recalled in Australia and now add end-of-life units from local users. This expanded access to feedstock should increase black mass volumes and stabilise plant utilisation over the medium term.

The recycler sold over 350t of black mass in the 2024-25 financial year to 30 June. Therefore, management expects higher sales in 2025-26 as the Livium LGES battery recycling deal ramps up. Livium channels this black mass to processing partners such as South Korea’s SungEel Hitech. These partners convert black mass into battery chemicals, which return to global cathode and cell producers.

Meanwhile, LGES is building a 20,000 t/yr battery recycling plant in France with Derichebourg. That European joint venture will also produce and process black mass from end-of-life batteries from 2027. Together, these initiatives show how LGES is building regional recycling hubs to secure critical materials.

Livium LGES battery recycling deal supports lithium recovery innovation

The Livium LGES battery recycling deal also complements Livium’s work on recovering lithium from spodumene waste. Livium signed an agreement with Australian producer Mineral Resources in January to optimise this extraction technology. As a result, the partners formed a joint venture in August to commercialise the process at scale.

This positions Livium not only as a black mass producer but also as a technology player in lithium recovery. For LGES, the partnership reduces long-term exposure to mined feedstock volatility and environmental scrutiny. It also aligns with automakers’ and battery producers’ ESG targets on recycling and resource efficiency.

In strategic terms, expanding the Livium LGES battery recycling deal strengthens regional supply security for nickel, cobalt and lithium units locked in black mass. It also supports Australia’s ambition to move up the value chain from raw material supplier to processing and technology hub.

The Metalnomist Commentary

This partnership illustrates how structured offtake agreements can accelerate the build-out of regional battery recycling ecosystems. For metals markets, increasing black mass flows from deals like this will gradually reshape demand for primary material and reward recyclers with robust technology and downstream access.

Colorado Battery Recycling Law Sets Mandatory Lithium Recovery Targets

Colorado Battery Recycling

Colorado battery recycling law introduces mandatory recovery targets for lithium, nickel and cobalt from electric and hybrid vehicle batteries. The measure creates a more structured framework for recovering critical minerals from end-of-life batteries.

Colorado battery recycling law requires recyclers to recover 50% of lithium from spent batteries by 2031 and 80% by 2035. Nickel and cobalt recovery must reach 90% by 2031.

Colorado battery recycling law will also prohibit landfilling of EV batteries from July 2029. This should push more used packs toward reuse, dismantling and materials recovery.

The legislation strengthens the commercial case for domestic battery recycling by creating clearer collection obligations and long-term recovery requirements.

Mandatory Recovery Targets Support Secondary Battery Materials

The Battery Stewardship Act requires battery stewardship organizations to submit plans covering collection, transportation, processing and recycling.

The lithium target is particularly important because recovering lithium economically has historically been more challenging than recovering nickel and cobalt.

A 50% recovery requirement by 2031 gives recyclers time to improve process efficiency before the threshold rises to 80% in 2035.

The 90% recovery requirement for nickel and cobalt sets an even higher standard. Both metals remain valuable inputs for several lithium-ion battery chemistries.

Recovering these materials can reduce dependence on newly mined supply and create more domestic secondary feedstock for battery manufacturers.

The landfill ban reinforces that objective by keeping valuable battery materials inside the industrial supply chain.

Producer Fees Could Improve Battery Collection and Recycling Economics

Battery providers will fund part of the system through fees linked to their share of battery vehicles registered in Colorado.

An initial programme fee will support implementation. Annual payments beginning by July 2030 will cover administration, enforcement and regulatory costs.

This shifts more responsibility for end-of-life batteries toward companies placing battery vehicles into the market.

The framework could also improve feedstock certainty for recyclers. Reliable access to spent batteries remains one of the biggest challenges facing the emerging US battpery recycling industry.

Over time, the legislation may encourage better pack design for dismantling, reuse and materials recovery.

If similar policies spread to other states, US battery recycling could develop around mandatory recovery standards rather than voluntary collection alone.

The Metalnomist Commentary

Colorado is turning battery recycling into a regulated critical minerals supply chain. The most important benefit may be feedstock certainty, because recyclers need predictable battery volumes as much as better recovery technology.

Brunp Battery Materials Project Expands CATL’s Recycling and LFP Supply Chain

Brunp Battery Materials

Brunp battery materials project development has advanced in Yichang, Hubei province, as Guangdong Brunp Recycling Technology broke ground on a 500,000 t/yr production complex. The project carries total investment of 6.1bn yuan, or about $840 million.

The new plant is designed to produce 300,000 t/yr of iron phosphate, 180,000 t/yr of nickel sulphate and 12,000 t/yr of cobalt sulphate. Construction is scheduled for completion in the second half of 2027.

Brunp battery materials project investment strengthens the upstream materials platform behind China’s battery industry. Brunp is a controlling subsidiary of CATL, the country’s largest battery producer, and focuses on recycling, resources and battery materials.

Yichang Base Builds Scale Across LFP and Recycling

The Yichang base will become a major integrated battery materials hub once the new project is operational. It will have 750,000 t/yr of iron phosphate capacity, 450,000 t/yr of lithium iron phosphate capacity and 500,000 t/yr of battery recycling capacity.

Brunp has already made several investments in Yichang since entering the city in 2021. The company launched a 450,000 t/yr LFP factory in December, reinforcing the site’s role in China’s expanding phosphate-based battery supply chain.

This matters because LFP batteries continue to gain share in electric vehicles and energy storage systems. Large-scale iron phosphate and LFP capacity gives CATL-linked supply chains stronger control over cost, material availability and recycling integration.

Recycling Capacity Deepens China’s Battery Materials Control

Brunp Recycling processed more than 200,000t of power batteries in 2025. The company now plans to raise total recycling and processing capacity to more than 1mn t/yr by 2030.

The strategy reflects a wider shift in battery materials sourcing. Recycling is becoming a strategic source of nickel, cobalt, lithium and other battery inputs, especially as governments and manufacturers seek lower-carbon and more secure supply chains.

The Yichang project also adds nickel sulphate and cobalt sulphate capacity, linking recycling with precursor material production. However, weaker upside in metals prices has limited buyer appetite in China’s black mass market, even as NCM payables edged higher in early March.

The Metalnomist Commentary

Brunp’s Yichang expansion shows how CATL is tightening control over the full battery materials loop, from recycling to LFP and sulphate production. The project also underlines China’s advantage in building scale across both primary materials processing and circular battery supply chains.

ACE Green Recycling to Expand LFP Battery Recycling Capacity in India

ACE Green Recycling

ACE Green Recycling, a US-based battery recycling company, has announced plans to significantly expand its lithium-iron-phosphate (LFP) battery recycling capacity in India. The company aims to increase its recycling capacity to 10,000 tonnes per year by 2026.

Expansion Details and Location

The expanded facility will be located near the port of Mundra in northwest India, building upon ACE's existing operations in the country. The strategic location near the port is expected to optimize the transportation of both feedstock and offtake products, improving efficiency and reducing costs.

Technology and Recovery Rates

ACE Green Recycling claims its proprietary technology can recover lithium from LFP batteries at levels of around 75%, producing lithium carbonate with a purity exceeding 99%.  In addition to lithium, the technology can also recover other valuable materials, including graphite, iron phosphate, steel, and copper. This comprehensive recovery process maximizes resource utilization and minimizes waste.

Market Outlook and Future Plans

ACE's chief executive officer, Nishchay Chadha, highlighted the expected dominance of LFP batteries in the lithium battery market by 2030, stating that the company is strategically scaling its LFP battery recycling capacity to meet the anticipated demand and support its growing customer base.  This expansion in India is a key part of ACE's broader growth strategy.

ACE also has plans to launch another LFP battery recycling plant in Texas, USA, in the second half of 2026. This plant is projected to have a processing capacity of 5,000 tonnes per year of scrap batteries.  In 2022, ACE signed a 15-year supply agreement with Switzerland-based Glencore for all recycled products from four of ACE's planned lead-acid battery and lithium-ion battery recycling facilities in the US, India, and Thailand, demonstrating strong market demand for recycled battery materials.

Hubei STR anode recycling plant will start in March 2026 as China’s battery scrap accelerates

Lithium-Ion Battery

Hubei STR will start the Hubei STR anode recycling plant in March 2026. The project targets 50,000 t/yr of recycled anode materials for lithium-ion batteries. The company began site construction in January 2022. As a result, the facility enters the market as battery recycling volumes rise sharply.

Battery scrap volumes will surge as China’s first NEV wave reaches end-of-life. Lithium-ion batteries usually retire when capacity falls to 80%. The US Advanced Battery Consortium links this threshold to an 8–12 year service life. Therefore, post-2025 retirements should expand the available feedstock for anode material recycling.

China’s EV scale is turning recycling into a supply chain priority

China’s EV scale is making the Hubei STR anode recycling plant strategically timed. China pushed NEV output above one million units in 2018. NEVs reached 40.9% of total auto sales in 2024. Meanwhile, October NEV sales hit 1.72mn units and took 51.6% market share.

Recycling capacity must follow that growth curve. China Association of Automobile Manufacturers forecasts NEV sales near 16mn units in 2025, up from 12.86mn in 2024. China Automotive Engineering Society estimates retired power batteries exceeded 580,000t in 2023. It expects retirements to reach 6mn t by 2030. Consequently, anode recycling becomes a cost, ESG, and security lever for battery makers.

Graphite recovery and copper foil separation define the value capture

Graphite recovery drives much of the anode recycling economics. The lithium-ion battery recycling process starts with dismantling and material separation. Recyclers can recover plastics and the diaphragm from anode-side components. They can also extract aluminium foil from cathode materials.

Graphite recovery then becomes the key upgrade step. Recyclers separate graphite from copper foil in spent anodes. They purify the graphite and sell it back into the battery materials chain. Therefore, the Hubei STR anode recycling plant can support a more circular anode supply. It can also reduce exposure to price swings in battery-grade inputs.

The Metalnomist Commentary

China’s recycling race is shifting from metals recovery to materials performance. Therefore, graphite purity and consistent output will decide who wins long-term contracts. However, recyclers must prove traceability and ESG compliance to unlock premium pricing.

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.

Toyota Secures $4.5 Million DOE Funding for EV Battery Recycling Technology

Argonne National Laboratory

Toyota, a global leader in automotive innovation, has received $4.5 million from the US Department of Energy (DOE) to advance cutting-edge electric vehicle (EV) battery recycling technology. This initiative aims to address critical bottlenecks in battery recycling, including automating pack disassembly, improving battery identification and sorting with data-driven methods, and mitigating challenges posed by cell degradation.

The Toyota Research Institute of North America will spearhead this project by developing autonomous robotic systems to disassemble EV batteries, an essential step toward enhancing sustainability and efficiency in the battery supply chain.

Efforts to Build a Sustainable Battery Ecosystem

As the demand for EVs grows, so does the volume of spent batteries and manufacturing scrap. Toyota’s initiative represents an effort to make the recycling process more sustainable, efficient, and scalable.

This latest project builds on Toyota’s growing portfolio of collaborations and research in battery recycling:

• April 2024: Partnered with Argonne National Laboratory to explore direct recycling processes for cathode chemistries containing critical minerals like nickel, manganese, and cobalt.

• Late 2023: Partnered with Cirba Solutions to enhance the collection, storage, testing, and recycling of spent batteries.

• 2022: Collaborated with Redwood Materials to focus on recycling hybrid EV batteries through improved collection and testing methods.

By working with leading recycling companies and research organizations, Toyota aims to ensure that its batteries are part of a closed-loop supply chain, reducing reliance on virgin materials and enhancing the sustainability of its EV production process.

The Path Ahead for EV Sustainability

This DOE-funded project underscores the increasing importance of a sustainable battery supply chain as EV adoption rises globally. By tackling technical challenges such as cell degradation and automation, Toyota is paving the way for scalable recycling solutions critical to the EV industry’s future.

GM Redwood Battery Storage Project Extends EV Battery Value Chain

BESS

GM Redwood battery storage project will deploy repurposed electric vehicle battery packs at a General Motors plant in Michigan, extending the useful life of batteries before final recycling.

GM Redwood battery storage project will combine 100 reused EV battery packs into a 1.5MW/7.2MWh battery energy storage system. The installation will provide dispatchable power and help reduce electricity costs at the manufacturing site.

GM Redwood battery storage project is significant because it connects battery manufacturing, vehicle use, second-life energy storage and materials recovery within one supply chain. Redwood estimates the system will save more than $3mn in electricity costs over its operating life.

The project also shows how retired EV batteries can remain economically valuable even after they no longer meet automotive performance requirements.

Second-Life Batteries Add Value Before Recycling

EV batteries typically retain significant usable capacity when they are removed from vehicles. That remaining energy storage capability can support stationary applications where weight and space are less restrictive than in automotive use.

Repurposing packs for BESS applications can therefore delay recycling while extracting additional economic value from the battery.

For industrial facilities, storage systems can help manage peak electricity demand, provide backup power and shift energy consumption toward lower-cost periods.

The Michigan installation gives GM a direct opportunity to reduce plant electricity costs using batteries already linked to its own vehicle ecosystem.

This model also reduces the need for newly manufactured cells in some stationary storage applications. That can lower incremental demand for lithium, nickel, cobalt, graphite and other battery materials.

However, second-life systems still require testing, battery management and safety controls because used packs can have different degradation histories and performance characteristics.

Redwood Builds Closed-Loop Battery Supply Chain With GM

Redwood's relationship with GM extends across multiple stages of the battery lifecycle. The recycler handles manufacturing scrap, end-of-life EV packs and now second-life energy storage deployment.

Redwood has already received more than 28,000t of material from GM, with another 10,000 EV battery packs expected to enter the pipeline.

The company also works with Ultium Cells, GM's joint venture with LG Energy Solution, to recycle battery production scrap from facilities in Ohio and Tennessee.

This creates a more integrated materials loop. Manufacturing scrap can return quickly to recycling, while vehicle batteries can first enter stationary storage before eventually being processed for material recovery.

The approach could become increasingly important as EV battery volumes grow. Recycling alone captures raw materials, but second-life deployment can add another revenue stage before final recovery.

For automakers, that can improve battery economics while strengthening access to recycled lithium, nickel, cobalt and copper over the longer term.

The Metalnomist Commentary

GM and Redwood are showing that the battery circular economy does not begin with recycling. Second-life storage can create an additional commercial stage between vehicle use and materials recovery, improving both battery economics and supply-chain efficiency.

Ascend Elements Bankruptcy Exposes Pressure in Battery Recycling Market

Ascend Elements

Ascend Elements bankruptcy filing shows how difficult the battery recycling business has become as electric vehicle adoption slows in the US and Europe. The US battery recycler has filed for Chapter 11 bankruptcy and will use the court-supervised process to restructure liabilities while continuing normal operations.

Ascend Elements bankruptcy comes despite major commercial and government-backed support. The company said it had secured more than $2bn in commercial agreements and a $320mn grant from Poland, but these were not enough to overcome longstanding financial issues and outstanding liabilities.

The filing highlights a broader weakness in the battery recycling sector. Recyclers need steady end-of-life battery and production scrap feedstock, but slower EV growth has limited available material and made it harder to sell recovered products into battery supply chains.

Funding and Offtake Deals Failed to Offset Financial Pressure

Ascend had previously planned to develop cathode active material production in Hopkinsville, Kentucky. However, the company and the US Department of Energy agreed in March 2025 to cancel a $164mn grant for that project.

The company later received a $320mn grant from Poland in May 2025 to build a precursor cathode active material plant. That support showed continued policy interest in battery materials localization, especially in Europe.

Ascend also signed a five-year offtake agreement to supply Trafigura with 15,000t of lithium carbonate from 2027 to 2031. The agreement gave the company a future sales channel, but it did not solve its immediate balance-sheet pressure.

Slower EV Growth Weakens Recycling Economics

Ascend Elements bankruptcy reflects the timing problem facing battery recyclers. Many business models were built around rapid EV growth, rising battery scrap availability and strong demand for recycled lithium, nickel, cobalt and cathode materials.

But slower EV adoption has delayed feedstock growth and reduced market confidence. Without sufficient input material and reliable downstream demand, recyclers can struggle to operate at the scale needed to justify large processing and materials investments.

The pressure is not limited to Ascend. Texas-based recycler Ecobat is selling assets in the UK, France, Italy, Germany and Austria to focus on North America, showing that consolidation and retrenchment are spreading across the sector.

The Metalnomist Commentary

Ascend Elements bankruptcy shows that battery recycling is strategically important but commercially unforgiving. The winners will be companies with secured feedstock, disciplined capital spending and customers ready to buy recycled battery materials at scale.

Toyota Tsusho PPESNA Stake Strengthens North American Battery Supply Chain

Toyota Tsusho

Toyota Tsusho PPESNA stake acquisition gives the Japanese trading firm a stronger role in building Toyota Group’s North American battery supply chain. The company acquired a 20% stake in Prime Planet Energy and Solutions’ North American subsidiary, PPESNA.

The Toyota Tsusho PPESNA stake is designed to support stable battery production across procurement, materials, components, production equipment and recycling. The move shows how Japanese industrial groups are deepening control over regional battery supply chains as North American electrification investment expands.

PPESNA was established in September 2025 to improve service and response capabilities for PPES customers and Toyota Group’s battery business in North America. Toyota Tsusho’s investment gives the subsidiary a broader commercial and supply-chain platform.

Toyota Tsusho Targets Battery Procurement and Recycling Integration

Toyota Tsusho said the investment will help develop a supply chain covering equipment procurement, battery materials, components and recycling. This is important because battery production increasingly depends on coordinated sourcing across cathode materials, anode materials, separators, electrolytes, cells, modules and recycling routes.

The company already has exposure to Toyota Battery Manufacturing North Carolina, which can produce 30GWh/yr of batteries at full capacity. That gives Toyota Tsusho a direct link to one of Toyota Group’s key North American battery manufacturing assets.

The Toyota Tsusho PPESNA stake also complements the company’s recycling strategy. Toyota Tsusho has established a joint venture with LG Energy Solution to recycle batteries in North Carolina, giving it another position in the circular battery materials chain.

North America Becomes a Strategic Battery Manufacturing Base

North America is becoming a core region for Japanese battery supply-chain investment. Automakers and trading houses are trying to localise procurement, reduce logistics risk and prepare for tighter regional content requirements.

Toyota Tsusho’s role is especially important because trading companies often connect raw materials, equipment suppliers, manufacturers and recyclers. In battery supply chains, that coordination can reduce bottlenecks and improve long-term production stability.

For Toyota Group, the PPESNA investment supports a more integrated North American platform. It links battery production, upstream procurement and recycling at a time when battery costs, material security and regional manufacturing incentives remain central to electric vehicle competitiveness.

The Metalnomist Commentary

Toyota Tsusho’s PPESNA investment shows that battery competitiveness is moving beyond cell production alone. The real advantage will come from controlling the full supply chain, from equipment and materials procurement to recycling and closed-loop recovery.

Li-Cycle Signs Exclusive Recycling Agreement with EU EV Manufacturer

Li-Cycle

Li-Cycle Partners with European Luxury EV Maker for Battery Recycling

Canadian lithium-ion battery recycler Li-Cycle has entered into an exclusive recycling agreement with a high-performance luxury electric vehicle (EV) manufacturer in the European Union. While the name of the manufacturer and specific details regarding the agreement remain undisclosed, this collaboration is set to play a crucial role in the circular economy of the electric vehicle industry.

Enhancing Battery Recycling Operations in Germany

The agreement ensures a steady supply of feedstock from the EV production facility located in the European Union to Li-Cycle’s spoke facility in Magdeburg, Germany. Li-Cycle operates a spoke-and-hub network, where used batteries are first shredded into black mass at the spokes. This black mass is then processed at the hubs to extract valuable materials such as lithium, cobalt, and nickel, which are essential for the production of new batteries.

Li-Cycle's expansion into Germany is a significant step in its mission to build a sustainable solution for lithium-ion battery recycling. The company’s innovative process helps recover critical raw materials, ensuring the responsible disposal and reuse of EV batteries in Europe.

A Strong Financial Backing for Growth

In November 2022, Li-Cycle secured a loan of up to $475 million from the US Department of Energy, which was later upsized by $100 million. This funding boosts the company’s ability to expand its operations and facilities globally, including its new venture in Germany. With the growing demand for EVs and the rise in battery recycling needs, Li-Cycle is well-positioned to serve as a key player in the transition to a greener future.

Conclusion: A Key Step in EV Battery Sustainability

Li-Cycle’s exclusive agreement with an EU-based luxury EV manufacturer signals a promising future for battery recycling. The partnership not only contributes to the global push for sustainability but also strengthens Li-Cycle's role in the critical metals supply chain. As the electric vehicle industry continues to grow, so does the demand for sustainable solutions to manage battery waste and recover valuable materials.

BMW and SK tes to Expand Battery Recycling in North America

SK, Battery Recycling

Strategic Partnership Targets Key Battery Materials

BMW Group and SK tes will expand their battery recycling partnership to North America in 2026. This move follows their successful European collaboration launched in November 2024. The expansion will cover the US, Canada, and Mexico. The partnership focuses on recovering crucial materials. These materials include cobalt, nickel, and lithium. Hydrometallurgical processes will extract these elements from used batteries. 

The recovered materials will support BMW's GEN 6 drive train production. BMW aims to enhance its sustainable battery supply chain. This initiative strengthens BMW's commitment to circular economy principles. The company previously partnered with Zhejiang Huayou Recycling Technology in 2022. This earlier partnership focused on recycling high-voltage batteries from BMW's electric vehicles in China. SK tes brings significant expertise in battery recycling technology. The partnership ensures responsible end-of-life management for EV batteries. This effort contributes to a more sustainable automotive industry.

Hydrometallurgy and the GEN 6 Drive Train

The partnership utilizes hydrometallurgical processes. This method efficiently recovers valuable battery materials. Recovered materials will be used in the GEN 6 drive train. This technology represents BMW's next generation of electric vehicle power systems. The focus on recovering cobalt, nickel, and lithium is crucial. 

These materials are essential for high-performance batteries. The recycling process reduces the need for new raw material extraction. This approach minimizes the environmental impact. The GEN 6 drive train will feature advanced battery technology. This technology will benefit from the recycled materials.

Hydro Takes Full Ownership of Battery Recycler Hydrovolt

Hydrovolt

Acquisition Strengthens Hydro's Position in the Growing EV Battery Recycling Market

Norwegian aluminum producer Hydro has announced the acquisition of the remaining shares in battery recycler Hydrovolt from Swedish battery manufacturer Northvolt. This move gives Hydro full ownership of Hydrovolt, solidifying its position in the rapidly expanding electric vehicle (EV) battery recycling market. The acquisition, valued at 78 million kroner ($6.8 million), is expected to close in the first quarter of 2025, pending court approval.

Hydrovolt, established in 2020 as a 50:50 joint venture between Hydro and Northvolt, operates one of Europe's largest EV battery recycling plants in Fredrikstad, Norway. The plant boasts a 95% recovery rate for materials used in EV batteries, including plastics, copper, aluminum, and black mass—a powder containing valuable elements such as nickel, manganese, cobalt, and lithium.

Expansion and Future Plans

Hydrovolt is also constructing a new recycling plant in Hordain, northern France, with operations slated to commence later this year. The company aims to recycle approximately 300,000 tonnes of battery packs by 2030, equivalent to roughly 500,000 EV batteries.

This acquisition comes as Northvolt faces financial challenges, having filed for Chapter 11 bankruptcy in November 2024 due to substantial debt. Hydro, which has been solely financing Hydrovolt's operations since mid-2024, now seeks a new partner to secure long-term funding for the subsidiary.

Strategic Significance

Hydro's full ownership of Hydrovolt underscores its commitment to sustainable and circular solutions within the aluminum and battery value chains. This strategic move strengthens Hydro's position in the burgeoning EV battery recycling market, contributing to a more environmentally responsible and resource-efficient industry.

Rivian Second-Life Battery Storage Project Links EV Packs to Grid Reliability

Rivian, Redwood

Rivian second-life battery storage is moving into commercial use after the US electric-vehicle maker agreed to deploy repurposed battery packs through Redwood Materials at its Normal manufacturing plant in Illinois. The project will use more than 100 used Rivian battery packs to provide 10 MWh of dispatchable battery energy storage.

The Rivian second-life battery storage project gives retired EV packs a second use before recycling. Redwood Materials will integrate the packs into a Redwood Energy system for on-site use at Rivian’s manufacturing facility.

Rivian second-life battery storage also reflects a wider shift in the battery value chain. Automakers and recyclers are looking for ways to extract more value from battery packs before recovering lithium, nickel, cobalt, copper, aluminium and other materials.

Redwood Turns Used EV Packs Into Stationary Storage

Redwood will receive EV battery packs from Rivian and convert them into a battery energy storage system for the Normal plant. The system will help reduce energy costs and support local grid reliability.

Second-life batteries are useful because EV packs can still retain meaningful capacity after vehicle use. They may no longer meet automotive performance requirements, but they can still serve stationary storage applications.

This creates a bridge between mobility and grid infrastructure. A battery pack can first support vehicle electrification, then provide stationary power, and later enter recycling for critical material recovery.

Redwood receives more than 20 GWh/yr of batteries, giving it a large feedstock base for both reuse and recycling. The company said it can deploy BESS projects in as little as six months, which matters as power demand rises quickly.

Data Center Power Demand Raises Storage Value

Rivian has attracted investors such as Google, which are seeking faster access to power solutions for artificial intelligence data center growth. This connection shows why second-life batteries are becoming more strategically relevant.

AI data centers need reliable, flexible and rapidly deployable power. Battery energy storage systems can help manage peak demand, improve resilience and reduce pressure on grids facing new large-load connections.

Repurposed EV batteries could become a lower-cost option where speed matters more than maximum energy density. They may also reduce waste and delay the need for immediate material recycling.

For the metals supply chain, this creates a more circular model. Battery materials stay in productive use longer, while recyclers build stronger long-term access to end-of-life packs and future recovered metals.

The Metalnomist Commentary

Rivian and Redwood are showing how EV batteries can become grid assets before they become recycling feedstock. The strategic value lies in extending battery life, lowering storage costs and securing future material recovery in one integrated loop.

Mercedes-Benz Opens Lithium-Ion Battery Recycling Plant in Germany

Battery Recycling Plant

Mercedes-Benz has inaugurated its advanced lithium-ion battery recycling facility in Kuppenheim, southern Germany, marking a significant step in its mission to establish a closed-loop system for critical minerals essential for electric vehicle (EV) production.

The new plant aims to process 2,500 metric tonnes per year of active and inactive materials from shredded battery modules. The active material, known as black mass, contains high-value critical minerals such as nickel, lithium, and cobalt. These will be refined and reused to produce over 50,000 battery modules annually for Mercedes-Benz's EV lineup.

Innovative Recycling Process

The facility utilizes a cutting-edge mechanical-hydrometallurgical process, which Mercedes-Benz claims can recover more than 96% of battery-grade critical minerals from spent lithium-ion batteries. The mechanical phase sorts and separates inactive materials like plastics, copper, aluminum, and iron. Meanwhile, the hydrometallurgical phase processes the black mass to extract critical minerals for reuse in battery production.

Sustainable Operations

Mercedes-Benz's Kuppenheim facility is powered entirely by green electricity, incorporating a photovoltaic system with a peak output of over 350 kilowatts. This aligns with the company's broader commitment to sustainability and reducing carbon emissions.

Technology Partnership with Primobius

The plant was developed in collaboration with Primobius, a joint venture between Australian process technology innovator Neometals and German engineering firm SMS. Mercedes-Benz's subsidiary Licular spearheaded the project, leveraging Primobius' expertise to implement cutting-edge recycling technologies.

Future Expansion Potential

While the Kuppenheim plant represents a significant milestone, Mercedes-Benz is cautious about scaling operations further. A spokesperson highlighted that production volumes could expand in the "medium to long term," contingent on insights gained from the facility’s initial operations.

This recycling initiative underscores Mercedes-Benz's dedication to creating a sustainable supply chain for critical minerals, enhancing EV production, and reducing environmental impact.

US Critical Mineral Processing Funding Targets Domestic Battery Supply Chain

Critical Mineral

US critical mineral processing funding is moving into another major round as the Department of Energy prepares to allocate up to $500mn for processing, recycling, and derivative battery manufacturing projects. The funding opportunity is designed to support US-based projects that can strengthen domestic supply of critical minerals and battery materials.

The Department of Energy will target projects that process raw feedstocks, recycle critical materials, or manufacture battery materials and components. The agency specifically identified battery-related materials such as lithium, graphite, nickel, copper, and aluminum among its areas of focus.

US critical mineral processing funding is becoming a central tool in Washington’s effort to reduce dependence on offshore refining and battery material supply chains. The latest funding round also shows that the US is not only focused on mining, but on the midstream capacity needed to convert raw materials into usable industrial inputs.

DOE Funding Pushes Midstream Capacity Beyond Mining

Critical mineral processing remains one of the most difficult gaps in the US battery supply chain. Mining projects can expand raw material availability, but domestic industrial resilience depends on refining, chemical conversion, recycling, and component manufacturing.

The new funding opportunity will support projects that can process critical minerals from raw feedstocks and recycle valuable materials back into the supply chain. This approach reflects the growing importance of black mass, scrap, and secondary materials as strategic inputs for battery production.

DOE battery materials funding also gives policy support to companies working across lithium chemicals, graphite processing, nickel products, copper materials, aluminum inputs, and battery component manufacturing. These segments are essential for electric vehicles, grid storage, defense electrification, and industrial energy systems.

Battery Manufacturing Policy Enters Third Funding Round

The latest funding notice marks the third round in recent years under the DOE’s battery materials processing and battery manufacturing and recycling programs. In September 2024, the agency selected 25 projects to receive more than $3bn to expand domestic battery, component, and critical material supply.

The new $500mn opportunity extends that policy direction. It gives the US another mechanism to move from strategic mineral rhetoric toward physical processing capacity, especially in areas where China still dominates global refining and battery material production.

Applicants must submit non-binding letters of intent by 27 March, with full applications due by 24 April. The timeline signals that the DOE wants near-term project visibility and a faster pipeline of investable domestic capacity.

US critical mineral processing funding will be especially important for companies that can prove commercial readiness, feedstock security, and scalable production. The strongest projects will likely be those that connect raw material access with downstream battery customers and recycling loops.

The Metalnomist Commentary

The US is now treating processing capacity as the real bottleneck in critical minerals security. Funding can accelerate projects, but the strategic test will be whether supported companies can deliver cost-competitive, qualified material at industrial scale.

Indonesia Battery Ecosystem Project Moves Forward With New Chinese Partnership

Aneka Tambang

The Indonesia battery ecosystem project is moving into a new phase with a fresh Chinese partnership. Antam, Industri Baterai Indonesia, and HYD Investment signed a framework agreement to develop an integrated battery ecosystem in Indonesia. This follows the exit of LG Energy Solution in 2025. As a result, the Indonesia battery ecosystem project remains alive and strategically important.

The change in partners matters because the project scale remains significant. Antam said the planned investment value is around $5-6 billion. A joint feasibility study will now define the next steps. Therefore, the Indonesia battery ecosystem project is shifting from partner transition into renewed execution planning.

HYD brings a strong industrial base to the table. The consortium includes Zhejiang Huayou Cobalt, EVE Energy, and Daaz Bara Lestari. That mix adds processing, battery, and investment capability. Consequently, the project gains a broader foundation across the battery value chain.

Indonesia Nickel Battery Chain Expands From Ore to Cells

The Indonesia nickel battery chain is central to this project’s logic. Planned facilities include an RKEF plant with 100,000 t/yr of nickel metal equivalent capacity. The project also includes an HPAL plant with 50,000 t/yr of nickel metal equivalent capacity. Therefore, upstream and midstream nickel conversion remain core pillars.

The downstream ambition is equally important. The project is expected to produce 105,000 t/yr of precursors and 30,000 t/yr of cathode materials. It also aims to build 20 GWh per year of nickel-based battery capacity. As a result, the Indonesia battery ecosystem project goes well beyond raw material processing.

Battery recycling also appears in the plan. The proposed recycling capacity is capped at 10,000 t/yr. That addition supports a more circular industrial model. Meanwhile, Antam will supply the nickel ore required for the project.

Antam Battery Project Reinforces Indonesia’s Downstream Strategy

The Antam battery project fits directly into Indonesia’s long-term downstream policy. Jakarta wants to build a local battery industry from mining to refining to final battery production. This new agreement supports that goal with another large integrated platform. Therefore, the project has national strategic value, not just commercial relevance.

This also shows Indonesia’s flexibility in partner management. LGES may have exited, but the broader industrial objective did not disappear. Instead, the project has been restructured around a new consortium. As a result, Indonesia continues pushing its battery ambitions despite partner turnover.

Antam’s role is becoming even more central. The company is involved in this project and also has a separate EV battery joint venture with CATL. That CATL-linked venture is expected to start operations by 2026. Consequently, Antam is emerging as one of the key anchors in Indonesia’s nickel battery chain.

The Metalnomist Commentary

This partnership matters because it shows Indonesia’s battery strategy is bigger than any one foreign partner. The country is still determined to convert nickel strength into downstream battery power. If execution improves, Indonesia could become one of the most integrated battery manufacturing hubs outside China.

Aqua Metals nickel carbonate supply deal strengthens US battery metals recycling

Aqua Metals

Aqua Metals nickel carbonate supply agreement with Westwin Elements marks a key step for US battery metals recycling. The US recycler will provide 500-1,000 t/yr of recycled nickel carbonate to Westwin under a long-term pathway. The Aqua Metals nickel carbonate supply deal is expected to be worth about $12mn/yr at today’s nickel prices. Both partners will depend on new commercial plants scheduled to come online before deliveries begin in 2027.

Nickel carbonate offtake anchors new US refining capacity

The agreement gives Westwin an early anchor for battery-grade feedstock from domestic recycling rather than primary mining. Aqua Metals nickel carbonate supply will support Westwin’s planned nickel refining operations, which aim to produce high-purity material for battery and specialty alloy markets. As a result, the deal helps de-risk Westwin’s project pipeline by pre-qualifying a secure source of recycled nickel.

Aqua Metals has already passed Westwin’s production testing and qualification process for battery-grade nickel carbonate. This performance validation is critical because cathode and precursor producers maintain strict impurity thresholds. Therefore, the Aqua Metals nickel carbonate supply arrangement signals technical confidence in the company’s hydrometallurgical recycling flowsheet.

Recycling gains ground in critical minerals strategy

The partnership reflects a broader shift toward closed-loop battery metals supply chains in North America. Policymakers increasingly view recycled nickel as a strategic complement to mined supply, especially for EV and stationary storage markets. Meanwhile, investors favor projects that combine ESG benefits with exposure to high-value nickel chemicals.

By locking in an offtake pathway ahead of full-scale commissioning, both firms position themselves for an expected demand upturn toward 2027. If execution stays on track, the collaboration could become a reference model for similar nickel, cobalt and lithium recycling deals.

The Metalnomist Commentary

This agreement underscores how offtake-linked recycling hubs are becoming central to North America’s battery raw materials strategy. The commercial validation of Aqua Metals’ nickel carbonate also highlights the maturing economics of hydrometallurgical recycling versus imported intermediates. Market participants should watch how quickly the partners convert this non-binding framework into bankable, long-term contracts.

Alus and BWM Forge Strategic Partnership to Revolutionize US Battery Recycling

Blue Whale Materials (BWM)

Alus, a leading South Korean aluminum producer, has entered into a groundbreaking partnership with Blue Whale Materials (BWM), a prominent US-based battery recycler, to tap into the American battery recycling market. This collaboration centers around BWM's facility in Bartlesville, Oklahoma, marking a significant step towards enhancing sustainable battery production in the United States.

Expanding Capacity and Utilizing Recycled Materials

Through this partnership, BWM plans to boost its production of black mass at the Bartlesville site. Black mass, a key byproduct of battery recycling involving the disassembly and shredding of batteries, contains valuable metals including lithium, cobalt, and nickel. Alus will utilize the recycled aluminum sourced from BWM to manufacture battery packs, promoting a circular economy in the metals industry.

Strategic Developments and Future Plans

The Bartlesville facility is poised to handle up to 50,000 metric tonnes per year of battery feedstock once fully operational. With a substantial investment of $55 million from the US Department of Energy received in September, BWM is well-equipped for a significant expansion. The plant is expected to commence operations in the second quarter of 2025, setting a new standard in battery recycling efficiency and sustainability.