The results of a study conducted by Nomura Research Institute (NRI) reveal that the battery recycling business in Europe can become a profitable operation by 2025.

 

During the European Union's Advanced Automotive Battery Conference, data calculated by NRI estimated that in Europe, the battery recycling industry can be profitable from 2025.

 

So far, the industry's situation in bringing back to life the essential components of a battery in the old continent is still far from matching by sales revenue of the extracted materials, its Chinese counterpart.

 

According to scrapmetalmonster.com, the cost of battery recycling is around 26 euros per kilowatt-hour in China. Meanwhile, in Europe, the same task is priced at 51/kWh euros. At the same time, the sale of recycled materials is estimated at around 34/kWh euros in both cases.

 

The accounts quickly show the superiority of the Asian giant when it comes to achieving profitability in the present, of an activity that is vital for the future and sustainability of society and the technologies and devices that support it. These are increasingly dependent on batteries in multiple aspects, services, mobility, tools, household appliances, and a long etcetera.

 

Recycling and sustainability

Everything that uses batteries, such as the electric vehicles that will define the new mobility, is an opportunity today to end pollution and the generation of greenhouse gases and make cities more breathable, livable, and healthy.

 

Part of this progress towards greater well-being will depend on our ability to recycle the batteries that give life to the many 'gadgets' that have become indispensable elements in our lives, from the cell phone to the electric car through dozens of other products.

 

The hundreds of millions of old cell phones out of use that Europeans store in their homes alone makes up an element that would make the concept of urban mining work thanks to a circular economy that would provide essential materials to industry.

 

This example can be extended to electric vehicles, which may go from salvation to becoming part of a new problem if their batteries are not properly disposed of once they reach the end of their lives. The plural used is because the battery may have a long life as part of renewable energy storage centers or other applications after use in a zero-emission vehicle.

 

The lack of raw materials, the controversial working conditions in many mines worldwide, transportation, processing, etc., can be supplemented if the used battery components are recycled and extracted. In this way, the environmental impact of battery disposal can be reduced, and entire continents can be turned into producers of raw materials where precious minerals cannot be found.

 

China is at the forefront of recycling

The main difference between China and Europe in making battery recycling profitable is the lack of investment in the old continent, comparable to that undertaken by China in recent years.

 

In addition, the transport, dismantling, and management processes are more expensive in Europe due, according to the study, to the low volume recycled. China transports and manages very high volumes of "battery scrap" with a consequent reduction in costs and consolidating an advanced development of battery dismantling technology.

 

For the NRI, the lithium-ion battery recycling market reached 97,000 tons in 2018. China accounted for 69% of that year's total, and South Korea reached 19%.

 

The remaining 12% is achieved by adding the United States, Japan, and the European Union.

 

It should be noted that these figures collect the content of recycled batteries, which are mainly batteries belonging to smartphones, which has allowed China to get an appreciable advantage over the rest since it is the leading country in cell phone manufacturing.