Many firms and investors are rushing to claim space in the recycling niche for electric vehicle batteries, but profitability may take decades as the supply of used lithium-ion packs grows slowly.
Although electric vehicles are still relatively new, their batteries typically remain functional for 15 to 20 years before they lose utility. This timeline creates pressure on recyclers to scale up smartly. They must decide how to fund plants, equipment, and staff now, without risking a cash crunch if aging batteries arrive more slowly than anticipated.
Consequently, battery recyclers face a delicate balance. They need clear strategies for sourcing and dismantling packs, extracting valuable components for reuse, and properly handling materials destined for recycling. Since lithium-ion cells can be flammable and vary widely in design from model to model, safe disassembly is challenging and potentially dangerous. While standard designs help, many car and battery makers press on with their own approaches. The industry is characterized by ongoing competition to create battery systems that maximize range while minimizing charging time and cost.
Building processing facilities requires substantial capital. For instance, investments by the Canadian Li-Cycle company have been reported to reach hundreds of millions of dollars.
The road to a thriving battery recycling sector is likely long. While smuggling old batteries from smartphones, laptops, and other devices into recycling streams is possible, collecting these smaller packs remains a significant hurdle.
A note on the reporting: the information reflects industry observations and public commentary from major outlets, cited in industry summaries.
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