Battery Recycling Symposium
May 6, 2021
Michael SANDERS302-540-9457
Battery Recycling How are business models
developing?
Presentation Outline
2nd Use and Battery Recycling
Regional Approaches
US Recycling Forecasts
Announcements and Production
Conclusions
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
AVICENNE PROFILE
Creation: 1992, by Ali MADANI
Headquarter: Paris
Liaison Office: Japan, USA, China
AVICENNE Energy Director:Christophe Pillot
4 consultantsA MadaniC PillotJP SalvatA Yassari
2 Senior advisorsX ZhangM. Sanders
Database: >20 000 contacts in the battery value chain
2
Information for Growth - Powering your company’s market
strategy with in-depth research and strategic consulting
The Rechargeable Battery market
29th Edition
Energy Storage Systems
Grid to Behind the Meter
Customized
survey
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
THE LI-ION BATTERY RECYCLING
VALUE CHAIN
Recycling in China has attracted lot of different players from metal suppliers, cathode suppliers, cell mfg., lead acid battery mfg., OEM and E-waste recyclers
In the US recycling is led by efforts from the DOE with mostly small start-ups, it isunclear who will become the leaders in the US
In other regions much larger companies are participating in major efforts
We are seeing more announcements of OEMs, Battery Companies and Recyclers– closing the loop for materials reuse
2nd use or recycling is also has a mix of growing start-ups, new major companyor cell manufacturers/partner entrants
3
For recycling in most cases the value chain starts with the vehicle
EV
usersPack
Dismantling Module
Cell Cathode
precursors
Battery
mfg.EV OEM
Metal
supply
Cathode
material
suppliers
Black mass
Al, Fe, Cu
Pack Removal
Battery Recycling Symposium
May 6, 2021
LITHIUM-ION BATTERY RECYCLING
China – Clear leadership in directives, regulation and subsidy policy, leading to global leadership in recycling
Japan and Korea – lagging China in regulation, moving forward with business models and process
EU – battery recycling has been in place for a while, under consideration to raise requirements to similar to overall automotive
US – DOE led experimentation but unclear policy or regulation
4
Regulation and Policy by Region
Michael SANDERS+ 1 302 540 9457
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
EUROBAT SUSTAINABLE BATTERIES
5
Welcome and introduction by EUROBAT – Gert Meylemans – Director Communications
Setting the scene - Dr. Marc Zoellner, CEO Hoppecke Batteries and EUROBAT President
View from the Portuguese Presidency of the Council of the European Union: Telma Branco, Environment Attaché at the Permanent Representation of Portugal to the EU
Panel: The Green Recovery and the role of batteries - the Market Perspective· Claudia Gamon, Member of the European Parliament· Karsten Kurz, Director Environmental Affairs, Europe, Exide Technologies· Jos Dings, Director European Policy & Business Development, Tesla Automotive· Patrick De Metz, Corporate Government & Environmental Affairs Director, SaftModerator: Alfons Westgeest – General Manager, EUROBAT
Conclusion and wrap-up, Dr. Marc Zoellner
In December 2020, the European Commissionpublished its proposal for a new “BatteriesRegulation”. It aims to provide a coherentlegislative framework for batteries, taking intoaccount the impressive evolution of the market aswell as new technologies and applications.
Come and join us for speeches from one of theleading battery consultancies “Avicenne Energy”and the Portuguese Permanent Representation,which will be followed by a lively Q&A discussionon the Green Recovery and role of batteries.Programme and Timing
Christophe PILLOT+ 33 1 44 55 19 90
Battery Recycling Symposium
May 6, 2021
EU BATTERY VALUE
CHAIN PROJECT
The European Union has approved 2.9 billion euros in subsidies from 12 member countries for a second pan-European project to develop the electric battery industry and move away from its reliance on Asian imports.
The EU's executive commission had already cleared a 3.2 billion-euro plan subsidized by seven countries in Dec. 2019 to support research and innovation in a key sector where Europe is lagging behind Asian competitors.
The EU, which expects that demand for batteries will grow quickly in the coming years, said Tuesday that the latest public funding is expected to unlock an extra 9 billion euros in private investment.
Comprehensive program to support all levels of the value chain
Not limited to EU based companies6Source: European Commission
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
BATTERY RECYCLING MARKET IN
CHINA
0
200000
400000
600000
800000
1000000
1200000
1400000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Ton
s o
f B
atte
ry
MIIT SMM, Sinolink Securities
GGII Pekin University
AVICENNE (1) AVICENNE (2)
AVICENNE (3)
The NEV(1) lithium ion battery pack to be recycled,
including mfg. Scrap will reach 200 kT in 2019-2020
and 400 kT in 2020-2021
Rationales
7
Explosive growth of new energy vehicles in China will pose a great challenge to battery recycling
Today, manufacturing scrap portion is quite significant but percentage will decrease rapidly and will become a non significant part as the portion of End Of Life batteries increase.
Ministry of Industry and Information Technology said it expects retired batteries will together weigh around 200,000 Tons by 2020.
The China Automotive Technology and Research Center estimated that figure would reach 350,000 Tons by 2025.
According to China Securities Journal, the battery recycling segment is a new gold mine thanks to its market size, which stands at 5 billion yuan ($788 million) this year, and is expected to double by 2020. Chinese Institutes has the same figures
We identified more than 35 players in the Li-ion battery recycling business. There are probably more.
Estimated lithium ion battery recycling capacity: 100 000 Tons in 2018, 500 000 Tons in 2020 and > 1 million Tons in 2025.
(1) Scenario 1 – Battery life time: 6 years
(2) Scenario 2 – Battery life time: 5 years
(3) Scenario 1 + considering 20 GWh annual market in 2025 for 2nd life batteries used for ESS, back-up for Telecom, etc… (50% of the total ESS market) ; 20GWh will represent roughly 20% of the end-Of-Life batteries.
(1) NEV: New Electric Vehicle (EV + PHEV)
(2) Sources: GGII: Gaogong Industry Research Institute, SMM: Shanghai Metals Market, Avicenne Energy 2018
Source: Excel/demand/table3
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
CHINA LITHIUM ION BATTERY REGULATION
Process started in mid-1990s as the “problem” was starting to be defined with consumer batteries – review of 1996 – 2018 progress in the appendix
2018 was a year of many changes to the regulatory and white listed landscape for Lithium Ion Batteries, the China Government took many steps to manage key issues that remain:
Interim Measures on Traction Battery Recycling (February 2018) – direct translation of summary in appendix
Interim Administrative Measures on the Traceability of Traction Battery Recycling (July 2018)
White List of five NEV battery recycling enterprises which meet the requirements of the “Standard Requirements for the Comprehensive Utilization of Decommissioned NEV Power Batteries”. (July 2018)
Implementation of Pilot Projects on Traction Battery Recycling (July 2018)
China Industry Minister did not complete the comprehensive new battery recycling rules that were expected by year end 2018, released in 2020.
Some programs like white listing, economic uncertainty for many chemistries and the pilot projects suggest further evolution will be needed for lithium ionbattery recycling regulations in China.
8
Regulation continues to evolve and are not complete
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
ENTERPRISE WHITE LIST (FIRST BATCH) IN LINE WITH THE
"STANDARD CONDITIONS FOR THE COMPREHENSIVE UTILIZATION OF
DECOMMISSIONED NEV POWER BATTERIES”
On 27 July 2018, MIIT announced a White List of five NEV battery recycling enterprises which meet the requirements of the “Standard Requirements for the Comprehensive Utilization of Decommissioned NEV Power Batteries”.
Besides Huayou Cobalt, Ganzhou Highpower Technology and JHD, the list also lists GEM and Brunp, which have close ties to BYD and CATL, China’s largest traction battery manufacturers.
These enterprises were chosen based on their scale, their rate of automatization, low energy consumption, environmental protection standards, efficient utilization of resources, and clean and high efficient technology. Going forward, they will receive strengthened support from the government.
It’s very important to be “white listed” because only those company will get subsidies from the government
To be white listed and chosen by the government, it is crucial to have good relationship with the government. Huge importance of lobbying.
Brunp told AVICENNE that 3 other companies are now selected
9
(issued by MIIT on 27.07.2018)
Source: MIIT, Brunp, AVICENNE Energy 2018
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
IMPLEMENTION OF PILOT PROJECTS ON TRACTION
BATTERY “RECYCLING” (MOSTLY BASED ON 2ND LIFE USE)
Chinese call this project a « recycling » project but it is related to 2nd life: EV battery pack to be used by Telecom back-up batteries.
On 25 July 2018, MIIT jointly with MoST, MEE, MoT, MofCom, SAMR and NEA announced 17 pilot areas for the implementation of a traction battery recycling system: the Jing-Jin-Ji region, Shanxi Province, Shanghai City, Jiangsu Province, Zhejiang Province, Anhui Province, Jiangxi Province, Henan Province, Hubei Province, Hunan Province, Guangdong Province, Guangxi Zhuang Autonomous Region, Sichuan Province, Gansu Province, Qinghai Province, Ningbo City, and Xiamen City.
The pilot projects are part of an ongoing effort to build a system for recycling traction batteries by 2020 and to explore innovative cooperation mechanisms. This involves
setting up production lines, efficient retrieval of batteries,
the commercialization of the recycling system,
developing benchmark recycling companies,
key recycling technologies,
relevant standards and supporting policies.
This project is not related to Recycler white list release.
The pilot phase will last for no longer than two years. China Tower Co., Ltd. will be in the lead to integrate the pilot projects, to report on them, to develop a battery cascade utilization demonstration project, and to establish an industry association.
10Source: MIIT
Jointly issued by MIIT, the Ministry of Science and Technology (MoST), MEE, MoT, the
Ministry of Commerce (MofCoM), SAMR, and the National Energy Administration (NEA)
on 25.07.2018)
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
CHINA RECYCLING REGULATIONS - 2020
China's ministry of industry and information technology has announced new regulations for the recycling of used new energy vehicle (NEV) power batteries.
The regulations, with effect from 1 January, include new recovery rates for major battery metals. The recovery rate for nickel, cobalt and manganese should not be below 98pc, while the rate for lithium must be above 85pc.
Rare earths are now subject to a recovery rate of no less than 97pc.
The regulations are expected to increase supplies of battery metals such as lithium, nickel, cobalt and manganese. The additional supplies are likely to be mostly used in NEV batteries.
China's NEV production has increased rapidly over the last decade. The country's power battery recycling industry is expected to enter a "large-scale" phase in 2020 with an output of 24.6GWh, according to the China automotive technology and research centre (Catarc)
11Avicenne 2021
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
LI-ION BATTERY PLAYERS
12
Li
Co
Ni
Cathode
Anode
Electrolyte
Separators
Li-Salt
Binders
Collectors
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
13
NORTH AMERICAN
LIB RECYCLING FORECAST
Tons/Yr 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Manufactunring Waste 100 130 150 170 200 230 260 300 330 360 400Consumer 50 51 52 54 56 58 60 65 70 75 80Auto LIB 2000 8000 15000 30000 50000 80000 110000 140000 170000 200000 240000HD/Ind 100 300 1000 3000 5000 8000 11000 14000 17000 20000 24000ESS 0 0 2 10 20 30 40 60 90 120 150
Key Assumptions
Manufacturing waste from ~150 Gwhcell manufacturing 3% by weight cell, 3% by weight engineered scrap
Auto life ~10yrs before recycling and warranty/crash replacement ~10%
HD/Industrial 3-5Yr life
Consumer collection rates remain ~25%
ESS remains small as life expectancy is 20 yrs
0
50000
100000
150000
200000
250000
300000
350000
20202021202220232024202520262027202820292030
US
Ton
s
North American LIB Recycling Forecast
Engineering Waste Manufactunring Cells
Consumer Auto LIB
HD/Ind ESS
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
RECYCLING PROCESS
14Sources: AVICENNE ENERGY 2018, Interviews
PR
E-TR
EATM
ENT
REF
ININ
G
Pre-treatmentModule dismantling + discharging + purely mechanical separation which results in a black mass.
Module dismantling + discharging + incineration + mechanical separation which results in a black mass.
Direct smelting which results in an alloy containing Co and Ni and a slag containing Li
RefiningMetal recovery: Leaching (either of the black mass and/or the alloy or slag) followed by various hydro-metallurgical steps such as extraction/precipitation to produce salts or precursor materials for the manufacture of active cathode materials
Regeneration of cathode materials
Direct Smelting
Most of the time, they have to batch process for different chemistries
Al, Cu
1
1
Taisen developed a process where they do not discharge the cell before crushing process leeching by water
EV Pack
Pack Dismantling
Module dismantling
Discharging
Cells dismantling Cell crushing
Mechanicalseparation
Black Mass
Leaching
Hydro metallurgical
steps
LI, Co, Ni, …
Cathode Re-Synthetise
Alloys and Slag
Hydro metallurgical
steps
Battery Recycling Symposium
May 6, 2021
NORTH AMERICAN RECYCLERSJiangxi Ganfeng LITHIUM Retriev
15
25 years of experience in battery recycling: lead Acid, NiCd, NiMH, li-ion, primary lithium and alkaline and battery management services: consumer batteries, industrial batteries, xEV
BC Canada: recycles lithium battery chemistries (primary lithium and li-ion) / volume: 4 million pounds (2000 Tons) Produces: Lithium Carbonate, Cobalt containing products, copper, aluminum, stainless steel
http://www.ganfenglithium.com
Produce 1,000 Tons of LCE Li recycled in 2017
Announced plans for Mexico plant to recycle bus batteries from Mexico/SA and Tesla batteries
looking to raise $1 billion from an initial public offering (IPO) in Hong Kong
Operations include lithium extraction, lithium compounds and metals processing as well as lithium battery production and recycling
https://www.retrievtech.com /
https://www.lithionrecycling.com/
Small Pilot Stage 200mt Anjou, Quebec, Canada
Team supported by HydroQuebec
Plans for 2000mt plant as first commercial plant timing unclear
Lower profile in past year
LithionLi-Cycle
Established spoke and hub approach to manage collection and transportation
Pilot in Ontario 2018 with Spoke and Hub pilot
Commercial Spoke 1 is upgraded with 5,000mt in 2020
Commercial Spoke 2 announced in January for Rochester, NY – $175M for 5,000mt
Commercial Spoke 3 announced Pheonix, AZ
https://li-cycle.com/
Battery Recycling Symposium
May 6, 2021
NORTH AMERICAN RECYCLERS
Nth Cycle
Onto Technology
16
Pre-pilot Stage
DOE funded research on cell deactivation, harvesting and sorting by cathode, cathode precursors and cathode healing
CO₂ cell deactivation process seems challenging and very difficult to do at scale
Pre-pilot Stage
Knoxville, TN and Boston, MA
Unclear how technology will become a business, seeking external funding
Team mostly technical resources
https://www.nthcycle.com/
https://www.lithionrecycling.com/
Michael SANDERS+ 1 302 540 9457
SungEel MCC Americas LLC (SMCC), will leverage MCC’s extensive worldwide network as well as SungEel’s proprietary lithium-ion battery (LIB) recycling process. SMCC will initially recycle over 3,000 tons of spent lithium-ion batteries annually. Cobalt, nickel, lithium and copper will be recovered from the recycled batteries through an efficient and environmentally friendly process. The recovered metals can be used in the manufacture of new lithium-ion batteries.
Metallica/ SungEel Hitech
https://www.smccrecycling.com/
Redwood MaterialsNevada based start-up with impressive starting list of customers: Panasonic/Tesla, Proterra, Amazon, ERI (NA largest electronics waste processor, Solar Panels)
60 tons per day, 20K tons/year
X-Tesla CTO is leading
Batteries and Electronics Waste
Battery Recycling Symposium
May 6, 2021
EUROPEAN UNION RECYCLERSUmicore
Veolia/Solvay
17
Umicore pilot capacity of recycling 7.000t/y batteries.
Umicore battery recycling process is a combination of pyro metallurgical and hydro metallurgical processing.
Batteries are sorted and dismantled in a safe way without crushing or shredding the cells. The advantage of this process is that operators and the environment are not exposed to hazardous battery compounds.
https://www.umicore.com/en/
Veolia had a pilot LIB recycling facility in France since 2013, using hydrothermal processes. Formed JV with Solvay in 2020. Solvay and Veolia provide new solutions to manage the metals used in lithium-ion electric vehicle batteries more efficiently.
Veolia has a tailored recycling collection/management program in North America:
• (5) Five fully-permitted recycling facilities across North America
• Solutions for large and small quantities of batteries
• Experience managing damaged or defective lithium and lithium-ion batteries
https://www.veolia.com/en/
https://www.solvay.com/en/
Duesenfeld is a technology start-up based in Braunschweig, DE has built a pilot plant.
They completely removes the fluoride prior to leaching, which reliably prevents the formation of hydrofluoric acid.
Dusenfeld https://www.duesenfeld.com/
Project ReLieve
The “Recycling Li-ion batteries for electric Vehicle” (ReLieVe) project, founded by Eramet, BASF and SUEZ, will receive a substantial funding of €4.7 million by EIT Raw Materials, a consortium initiated and funded by the European Union, and the three members.
Battery Recycling Symposium
May 6, 2021
Spiers New Technology
18
AUTOMOTIVE 2ND USE BUSINESS MODEL
Oklahoma-based US company Spiers New Technology (SNT) has grown from a small team in 2015 to an international company
Nissan Leaf batteries ready for use in energy storage solutions in both North America and Europe
Toyota Prius batteries are refurbished by SNT and sold to companies which offer the packs under their own brand
The batteries are used in ESS, forklifts, golf cars and solarpowered street lights, vehicle charging ESS stations…
China Tower (the major operator of telecom towers announced partnerships with 20 major Chinese EV and battery manufacturers including BYD, Guoxuan High Tech and YinLongNew Energy on second life electric vehicle batteries
End of 2018, li-ion batteries equipped 2% of Telecom towers, end of 2019, 15% of Telecom towers of China Tower are equipped of 2nd life li-ion electric vehicle batteries
March 2020: China Tower announced that it would tender for the purchase of 2 GWh li-ion LFP battery (not 2nd life)
A new agreement between Volvo Buses and Stena Recycling subsidiary Batteryloop will give second lives to used EV batteries.
After the batteries are removed from Volvo’s buses, they will be reused as energy storage units in stationary applications such as buildings and charging stations.
Volvo Buses and Stena
Recycling
China Tower
Only one location for recycling: Japan, opened in March 2018 to recycle or remanufacture Nissan LEAF battery packs.
4R Energy Corp. is developing and testing to use EV li-ion batteries in ESS, backup power systems and also for solar panels on homes or business structures
4R Energy is selling remanufactured battery packs for houses and apartment buildings but in a limited number
4R Energy Corporation
(Nissan/Sumitomo)
Michael SANDERS+ 1 302 540 9457
Battery Recycling Symposium
May 6, 2021
KBI - Kinsbursky Brothers Inc
19
AUTOMOTIVE 2ND USE BUSINESS MODEL
Founded in 1958, long experience in the recovery of valuable metals from catalytic converters and from Li-ion batteries
One of the largest collector of waste batteries in the US, employs around 200 people, has set up a separate division for refurbishment of xEV batteries, XEV Strategies Div., in 2015
Refurbishment (to resell), battery management and testing, logistics and storage services and recycling to recover valuable metals of all battery formats and for all chemistries
KBI specializes in the processing of industrial Lead Acid batteries
“Advanced Battery Storage” program, which aims to build the biggest stationary energy storage system using EV batteries ever designed in Europe (power: 70 MW / energy: 60MWh), initially to be operational in 2020, has been delayed by end 2021
Renault is partnerning also the ELSA project to develop a unique energy storage system. The ELSA consortium consists of 10 members the main partner is Bouygues Energies & Services: using Kangoo battery packs based on AESC (LMO pouch cells)
Daimler is cooperating with The Mobility House, GETEC and REMONDIS to develop grid connected ESS plants
Major activity: ESS plants using used xEV battery packs
Daimler
Renault – Advanced Battery
Storage Program
Global Battery Solutions (formerly Sybesma’s Electronics) offering repair, remanufacture, repurposing, and recycling (in test) options for industrial & automotive li-ion batteries
Repairing packs for A123, BAE
Major activity: repair, remanufacture, repurposing, and recycling (in test with Grand Valley State University – MI)
Global Battery Solutions
Michael SANDERS+ 1 302 540 9457
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
CONCLUSION
Chinese xEV battery pack recycling market will increase fast: The lithium-ion battery reached 200 kTin 2019-2020 and 400 kT in 2020-2021
Estimated lithium-ion battery recycling capacity: 100,000 Tons in 2018, 500,000 Tons in 2020 and > 1 million Tons in 2025.
The technical specifications are not yet finalized – leaders are mostly using similar processes, US has more variance coming from start-ups, some advanced pilots and multiple early commercial plants, the recycling system, final regulation and subsidies has been furthest developed in China and much less in ROW
Most of the companies are still at a pilot scale, some have moved to commercial scale
Manual dismantling of the pack
All the companies use both pyro & hydro process / Pre-treatment including cell crushing & mechanical separation of Al, Cu & Black mass / Refining of the Lithium, and then Co, and Nickel
Today, as volume are small, it is difficult make profit with Li-ion battery recycling in ROW, China leaders are showing profitability and expanding into battery materials – Cathodes
Recyclers have added Cathode capability or have announced intentions, Umicore and ShanShanalready had existing cathode businesses
2nd Use in early stages of feasibility demonstration and TCO analysis
We forecast that recyclers will make profit as soon as they reach higher capacity (20,000 Tons of battery pack recycling NMC batteries) and a couple of leaders in China have reached profitability
Recyclers hope to get incentives from the government to help them reaching higher capacity.
20
Michael SANDERS+ 1 302 540 9457
Michael SANDERS302-540-9457
Battery Recycling Symposium
May 6, 2021
21
Christophe PILLOT
AVICENNE ENERGY
Phone: +33 1 44 55 19 90
Mobile: + 33 6 88 82 79 49
Michael SANDERS
AVICENNE ENERGY US
Mobile: 302-540-9457
