Japan and Europe join forces to reuse electric vehicle batteries

Japan and Europe join forces to reuse electric vehicle batteries

Japan-Europe Collaboration Pushes Forward with EV Battery Recycling

Japan and Europe have joined forces to tackle the challenges of the electric vehicle (EV) battery supply chain, aiming to foster sustainability, technological advancement, and sourcing diversity. The collaborative effort, set to be formalized through a memorandum of understanding between Japan's Information-technology Promotion Agency (IPA) and its European counterparts, promises several potential benefits and implications for global EV markets.

Sustainability

The alliance is spearheaded by joint ventures such as LG Energy Solution’s partnerships with Toyota Tsusho in Japan and Derichebourg in France, which create recycling hubs that process used EV batteries into reusable "Black Mass." This material is then refined into critical minerals like lithium, cobalt, and nickel for new battery production. These initiatives support circular economy principles by enabling battery materials to be reused multiple times, reducing the need for virgin mining and lowering environmental impacts.

European projects, like the EU Battery Regulation requiring up to 80% lithium recovery by 2031, align with this approach, fostering sustainable material loops.

Technological Advancement

Collaborations focus on advancing battery recycling technologies, such as through innovative hydrometallurgical and solvent extraction techniques that improve lithium recovery efficiency and purity, meeting strict standards demanded by battery manufacturers. Integration of expertise from diverse companies (Japanese, European, Canadian, and more) drives innovation in recycling methods and supply chain optimization.

The partnership between UK cleantech Altilium and Japanese investors, for instance, aims to scale up battery recycling technologies like EcoCathode, accelerating clean tech development.

Sourcing Diversity

By recycling batteries locally in both Japan, Europe, and the US, these partnerships reduce reliance on imported raw materials dominated by a few countries, increasing supply chain resilience and security. European collaborations ensure that battery-grade materials for EV production come from diversified sources, including recycled materials and regional mining/refining projects.

This diversity helps mitigate geopolitical risks and supply shocks affecting the raw material market critical for EV batteries.

Potential Benefits and Global Market Implications

Improved recycling capacity and technologies lower battery production costs over time by increasing the availability of recycled battery materials, making EVs more affordable and accelerating their adoption globally. Enhanced material circularity supports stricter regulations worldwide by ensuring compliance and promoting sustainable industry practices, thus encouraging further policy harmonization across regions.

The collaborative approach strengthens the entire EV battery ecosystem across continents, spurring innovation, job creation in green industries, and reinforcing global supply chains. Diversified and sustainable sourcing can reduce carbon footprints and mineral extraction impacts of EV manufacturing, aligning with global climate goals and consumer demand for greener vehicles.

In summary, the Japan-Europe collaboration on EV battery recycling leverages joint ventures, advanced recovery technologies, and diversified sourcing strategies to promote a sustainable, innovative, and resilient EV battery supply chain. This is expected to bring technological, environmental, and economic benefits that support the acceleration and scaling of the global electric vehicle market.

[1] S&P Global Market Intelligence. (2021). Japan, Europe to collaborate on EV battery recycling. [online] Available at: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/japan-europe-to-collaborate-on-ev-battery-recycling-75070547

[2] Altilium. (2021). Altilium secures £7m investment to fast-track commercialisation of battery recycling technology. [online] Available at: https://www.altilium.co.uk/news/altilium-secures-7m-investment-to-fast-track-commercialisation-of-battery-recycling-technology

[3] European Commission. (2020). EU Battery Regulation. [online] Available at: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12622-EU-Battery-Regulation_en

[4] European Commission. (2021). EU Battery Alliance. [online] Available at: https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-green-deal/circular-economy/batteries/eu-battery-alliance_en

[5] Rock Tech Lithium. (2021). Rock Tech Lithium announces strategic partnership with Ronbay New Energy Co., Ltd. [online] Available at: https://www.rocktechlithium.com/news/rock-tech-lithium-announces-strategic-partnership-with-ronbay-new-energy-co-ltd

1. The joint ventures between LG Energy Solution, Toyota Tsusho, Derichebourg, and other partners harness environmental-science and technology to recycle EV batteries and convert them into reusable materials, promoting a more circular economy and lowering the environmental impacts associated with raw mining.
2. The Japan-Europe collaborative effort not only intends to foster technological advancement by improving battery recycling technologies, but also aims to secure diversified sourcing of materials, reduce reliance on imported raw materials, and alleviate geopolitical risks and supply shocks, contributing to a more resilient and sustainable EV battery supply chain.

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