Highlights

  • Recycling and reusing used battery packs is a potential long-term solution to the problem of battery waste.
  • The U.S. is heavily dependent on imports for battery minerals, while China accounts for over 70% of global production capacity.
  • EV production is expected to increase in the U.S., creating opportunities for companies in the EV battery manufacturing and recycling space.
  • Oklahoma company Spiers New Technology is recycling used EV batteries and salvaging critical minerals.
  • Spiers New Technology specializes in extending the life of EV battery packs and reducing the need to mine critical minerals.

EV industry is poised for a major expansion, with dozens of new models set to hit the market in the coming years. Industry experts predict that over 300 million electric vehicles will be on the roads by 2030. While the lifespan of an EV battery is estimated to be between 12 to 15 years in moderate climates, this does not mean that the batteries are destined for landfills when they reach the end of their usable life.

There are several companies that specialize in lithium-ion battery recycling, including Li-Cycle, Redwood Materials, and Spiers New Technologies (SNT). SNT, headquartered in Oklahoma City, focuses on repurposing, refurbishing, and recycling EV batteries, giving them a second life. The company has already partnered with major automakers such as Volvo, Porsche, GM, and Ford to take old batteries and make them new again. An EV battery’s estimated reuse lifespan can range from five to 30 years.

Extending the life of an EV battery is critical, as the demand for graphite, lithium, and cobalt is expected to increase by 500 percent by 2050 due to the battery boom. By reducing the need for new mines and critical minerals, battery recycling can help mitigate the environmental impact of this rapidly growing industry.

To gain insight into the process of giving an EV battery a second life, let’s explore.

The Life Cycle of an EV Battery

The life cycle of an EV battery begins with the extraction of critical minerals from the earth. The minerals that go into EV batteries include lithium, cobalt, manganese, nickel, and graphite. China currently accounts for over 70% of global production capacity of EV batteries, leaving other countries, including the U.S., heavily dependent on imports from battery minerals.

Once the critical minerals have been extracted, they are used to produce battery cells. Battery cells are then assembled into battery packs and integrated into EVs. Tesla, Volvo, and GM are just a few companies leading the way towards electrification, with dozens of new electric vehicle models scheduled to debut in 2024, and over 300 million EVs expected to be on the world’s roads by 2030.

The battery packs in EVs typically last between 8 to 10 years, depending on usage and environmental factors. As EV batteries degrade over time, they lose capacity and become less efficient, which ultimately leads to reduced driving range. Once the battery pack reaches the end of its life, it must be replaced or recycled.

Recycling and reusing used battery packs is one possible long-term solution to the growing problem of end-of-life EV batteries. Oklahoma-based company, Spiers New Technologies, specializes in the life cycle management of EV battery packs by extending their first life and reducing the need to mine critical minerals. The company rebuilds the battery packs they can and salvages critical minerals from the rest.

In recent years, China has locked up the bulk of the world’s production of battery minerals. However, under President Biden’s Inflation Reduction Act, EV manufacturers can qualify for a tax credit if 40% of its critical battery minerals are sourced domestically or with a free trade partner like Canada by 2024. Recycling and reusing used battery packs is one possible long-term solution to the mineral sourcing issue.

The Future of Battery Recycling

Companies like Redwood Materials, Life Cycle, and American Battery Technology have developed processes to recycle lithium-ion batteries. While it’s still early stages, the infrastructure for battery recycling is being built for something that is expected to exist in several years. The cost of recycling used batteries needs to be comparable to newly mined materials, but the demand for recycled batteries will be significant as the number of EVs increases. Repairing, remanufacturing, repurposing, and recycling EV batteries are all options being explored to extend the life cycle of these batteries and reduce the need to mine critical minerals.

Recycling and reusing used battery packs is one possible long-term solution. Dirk Spiers, the founder and CEO of Spiers New Technologies, specializes in the life cycle management of EV battery packs by extending their first life and reducing the need to mine critical minerals. Spiers New Technologies takes used and faulty EV batteries, many of which will function again, and rebuilds the ones they can while salvaging critical minerals from the rest.

Spiers explains that they are in the early stages of building the infrastructure for something they expect to exist in several years that isn’t yet at a large scale. The company ensures that the batteries are clean before taking them apart, testing them, building them back together, and ensuring that they are as good or better than what they replace. Spiers is optimistic that recycling used battery packs will become a significant industry in the U.S. by 2030 as more and more EVs reach the end of their life and require replacement battery packs.

The volume of recycling is hotly debated right now, with billions of dollars of venture capital going into it. Sourcing minerals domestically is necessary to keep up with new regulations, but opening minds in the U.S. has been met with opposition from local communities concerned about environmental and health hazards. However, recycling and reusing used battery packs could provide a sustainable solution to these concerns.

Both public and private commitments suggest that EV production will increase in the US, which means more American companies are likely to enter the space of EV battery manufacturing and recycling. Repairing, remanufacturing, repurposing, and recycling of EV batteries are some of the things that critical minerals are salvaged and reused.

While recycling and repurposing used EV batteries is still in its early stages, there is great potential for this industry to grow as the demand for EVs continues to rise. By extending the first life of EV battery packs and reducing the need to mine critical minerals, we can create a more sustainable and environmentally friendly future for the EV industry.