Future Recycling of Electric Vehicle Batteries Significant by 2016

Future Recycling of Electric Vehicle Batteries Significant by 2016-Image by mrdavisdc via Flickr

There is not much sense economically to recycle lithium-ion (Li-ion) batteries at this time, but research and analysis from the research and consulting services Frost & Sullivan have found it will become a significant portion of the value chain by 2016.  This is when it is projected that substantial numbers of Electric Vehicle (EV) batteries will be moving through the waste stream for recycling.

The EV Li-ion market for battery recycling is expected to be worth over $2 billion by 2022, and the battery packs for EV’s that have reached the end of their lives will number over half a million available for recycling.  The new analysis from Frost & Sullivan Global Electric Vehicles Lithium-ion Battery Second Life and Recycling Market Analysis also points out that if the number of electric vehicles (EVs) and their associated battery packs increase in the long term, recycling and reuse will help validate vehicles belonging to the ‘green car’ category.

“Although lithium currently costs less than other raw materials needed for manufacturing a battery, there is an inherent risk due to its availability being dependent on a small geographic area,” notes Frost & Sullivan Industry Analyst Aswin Kumar. “Almost 70 per cent of lithium deposits are in South America.”

Even though lithium is completely recyclable, battery-grade lithium from recycling is more expensive than lithium derived from direct sources.  Additionally, the deficiency of price incentives, legislation restricting lithium recycling and limited incentives for use of energy storage hinders reuse measures.

“The cost of batteries, which is the main hindrance for EV adoption, can be lowered through reuse or second life applications,” remarks Kumar. “Furthermore, with the rapid increase in the adoption of portable consumer electronic goods and their associated rechargeable lithium-ion batteries, battery recycling can reduce reliance on import or production of lithium.”

The arrival of Li-ion batteries is expected to stimulate automotive and utility industries to sell a common fuel electricity to consumers.  With second life applications, Li-ion batteries are in position to contribute to a net reduction in emission, past what is now achieved by using an EV.