Battery recycling in Europe is indeed gaining significant momentum, with both established and new players ramping up their capacities. Here’s a summary of the latest developments:
Current recycling landscape
- Expansion and new facilities: Europe is witnessing a surge in both recycling capacities and the number of facilities. By the end of 2024, the capacity for recycling lithium-ion batteries (LIB) is expected to reach around 330,000 tonnes per year. Major announcements include significant expansions by companies like Li-Cycle, Eramet and Re.Lion.Bat.
- Capacity breakdown:
- Spokes: These facilities handle the initial stages of battery recycling, such as discharging, dismantling, and processing into black mass. They are typically decentralized to optimize collection logistics. By the end of 2024, spoke capacities are expected to double from 160,000 tonnes in 2023 to 300,000 tonnes.
- Hubs: These are centralized facilities that refine black mass into valuable raw materials using processes like hydrometallurgy. The capacity of hubs is projected to increase significantly, with a total capacity expected to reach 900,000 tonnes per year by 2030.
- Regional trends:
- Central and Eastern Europe: There’s a notable concentration of recycling sites in these regions, driven by proximity to battery material producers and automotive manufacturers.
- Western Europe: Countries like Germany and France are also expanding their recycling capacities with both pilot projects and larger-scale operations.
- Key Players:
- European companies: Companies like Northvolt, Altilium Metals and Librec are expanding their capacities, with Northvolt aiming for substantial increases by 2030.
- International competition: Asian and American companies, including SungEel HighTech and EcoBat, have a significant share of the market, particularly in spoke and hub capacities.
- Challenges and opportunities:
- Capacity vs. supply: The planned recycling capacities are expected to exceed the projected return volumes of recycled batteries and production scrap, which could lead to an oversupply in the short term.
- Market dynamics: The pace of expansion in recycling capacities is closely linked to the growth of battery cell production. Any slowdown in cell production could impact the development of recycling infrastructure.
Future outlook
The recycling sector is evolving rapidly, with a strong focus on increasing capacities and improving processes. The balance between recycling capacity and the availability of end-of-life batteries will be crucial. As the battery industry continues to grow and mature, Europe’s recycling infrastructure is expected to adapt and expand to meet increasing demand.
