Fortune Minerals : COBALT NEWS

S&P Global Market Intelligence - June 9, 2021

Battery recycling efforts have picked up in major electric vehicle markets, but analysts said the industry still lacks well-established ...

recycled batteries, providing one solution for EV makers seeking cobalt-free batteries. Building policy in China In China,

Battery recycling efforts have picked up in major electric vehicle markets, but analysts said the industry still lacks well-established collecting systems and regulatory frameworks to provide sufficient secondary supply for manufacturers as potential shortages in key metals loom…Some key components of EV batteries, such as lithium and cobalt, are expected to be in short supply after 2024, while nickel, another major EV battery component, will remain in a sustained market surplus to 2025, according to S&P Global Market Intelligence data…As EV penetration rates increase through 2040 amid global efforts to transition to a low-carbon future, demand for battery materials is expected to soar. Demand for the critical minerals used in batteries for EVs and grid storage will grow by at least 30 times by 2040, the International Energy Agency estimated in a May report. The projected surge in used battery volumes presents an opportunity for the recycling industry to integrate into the battery supply chain, experts said…EV batteries manufactured over the next decade will likely have a minimal amount of recycled battery content, but that could change by the end of 2030, with recycled cobalt, nickel and lithium making up 10% to 20% of global demand, according to Ajay Kochhar, CEO and co-founder of the five-year-old Canadian battery recycling company Li-Cycle Corp…Annual cobalt supply from recycling could reach 34,000 tonnes by 2030, with more than 80% sourced from batteries, according to the outlook. However, that may not be nearly enough…In China, less than 10% of end-of-life or spent lithium-ion batteries are recycled or reused. Some analysts said the lack of dominant recycling players in major EV markets, such as China, can be traced to the limited profitability of the industry. Without dominant players, battery recycling is still a nascent industry without an established model that others could learn from, Yu said…But battery recycling is gaining momentum amid a push from the government, according to analysts. In March, Chinese Premier Li Keqiang said the country would accelerate the development of power battery recycling systems while delivering the 2021 Government Work Report…In the U.S., the adoption of lithium-ion battery recycling policies at a federal or state level could help create a more circular supply chain for EVs, some experts said…Lithium-ion batteries do not have the same recycling mandates as lead-acid batteries, according to Ciez. About 99% of lead-acid batteries in the U.S. are recycled, due to widely adopted recycling requirements, but the same regulations do not exist for lithium-ion batteries…'It's problem also just a looming that we see coming, but it is not here yet, so it's hard to get a lot of infrastructure built for that,' Ciez noted…The European Commission's battery recycling proposals include imposing standard recovery rates for certain battery materials and requiring new batteries to have a minimum amount of recycled content.