A provision of the US Inflation Act qualifies electric vehicle battery materials recycled in the US as American-made. This has led to a real growth spurt in US companies dealing with recycling which is launching a challenge to China
economics is associated with Batteries recycling In the United States will experience significant growth. The reasons are many. One is attributed to an almost unnoticed item, part ofInflation Reduction Act That automatically qualifies as recycled EV battery materials in the US American made. This is critical to receiving government support, regardless of the origin of the pools.
The race to recycle batteries
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L’Inflation Reduction Act Solutions swaying massive $369 billion anti-inflationary schemes while making historic investments in a variety of climate solutions has then prompted companies to recycle electric vehicle batteries in the US, putting the country at the forefront of the global race. To undermine Chinese hegemony in the sector. there Reuters He interviewed more than a dozen officials and industry experts, who believe there will be a real factory building boom in the US that will encourage automakers to look for batteries that are more likely to be recycled. According to research firm EMR, China handles almost all of the recycling of electric vehicle batteries In a global market that is expected to grow from $11 billion in 2022 to $18 billion by 2028. As more electric vehicles grow in the market and become obsolete, the recycling business is set to grow. said JB Straubel, CEO of Redwood Materials, a company that received a $2 billion loan from the US government in February to build a battery material recycling and recycling complex in Nevada, according to the IRA (Inflation Reduction Act) recycled battery materials are considered “urban extracts”, ie It was salvaged from scrap rather than mined. He said the metals in the batteries – mainly lithium, cobalt and nickel – are worth an average of 1,000 to 2,000 euros per car. Reuters BMW Sustainability Director Thomas Becker.
It is a challenge between the United States and China
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“The IRA is changing the demand equation for battery materials,” said Mike O’Cronley, CEO of Ascend Elements, a company that opened a recycling plant in Georgia that receives nearly $500 million in grants. We are in the midst of a rush to build “closed-loop supply chains” where recycled metals are fed into new, locally produced batteries. “Everyone wants to control their supply chain and no one wants to depend on the Chinese,” said Christian Marston, chief technology officer of Altilium Metals, a company that is currently building a plant in Bulgaria and plans to have one in the UK by 2026.
The new black gold. Europe on the periphery
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According to data from PitchBook.com, Globally, there are at least 80 companies involved in the recycling of electric vehicles, with more than 50 startups that have raised $2.7 billion, almost all in the past six years, from corporate investors including automakers, battery makers and mining giants like Glencore. According to consulting firm Circular Energy Storage, the amount of EV batteries available for recycling is expected to increase more than tenfold by 2030. About 11.3 GWh of batteries reached the end of their life in 2022 and is expected to rise to 138 GWh by 2030, equivalent to powering about 1.5 million electric cars. Some industry insiders predict that rapid growth means that 40% of the material of the batteries used in new electric vehicles could come from recycled stock by 2040. In this game, which is currently dominated by China, Europe remains on the sidelines. In the coming years, those who manage to get as much useful material as possible from battery recycling will be successful.
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