CIRBA Solutions highlights the importance of a robust and critical mineral supply to meet battery production and recycling demands.
Important minerals. Global domination. recycling. battery. Clean energy. Electric car. Energy storage system. These are all topics being discussed on global and national scales as they are important for the country’s position in the global critical mineral race.
Whether the region is already mineral-rich or is considering increasing capacity, it is important to strategize ways to strengthen supply chains in today’s key mineral sectors. The question is, “How do you achieve this in the short term and what are your long-term growth strategies?”
The solution is to diversify sourcing and establish infrastructure. This is incorporated into a long-term strategy for recycling terminal batteries and manufacturing scraps.
The answer is clear, but the trajectory to get there is not a straight line. It is important to meet the expected demand for critical minerals, create a resilient and stable supply chain, gain market control and build a more competitive landscape.
Prioritizing rich and important mineral supply
The focus on critical mineral supply is a priority for OEMs, battery cell producers and Gigafactory, but is pushed heavily by government agencies.
Through measures such as partnerships, tariffs and tightening key mineral levers, the administration is currently taking action to protect assets and increase access, and is positioning favorably in the future.
According to the International Energy Agency (IEA), a surge in new policies and facilities to support the recycling of critical minerals can reduce potential stocks in the supply.
Increased battery recycling capabilities
Demand for batteries has not slowed down, further strengthening the need to increase battery recycling and processing capabilities. Based on current policy settings, the estimated demand growth is expected to increase by more than four times by 2030, and by 2035.2.
The ability to recycle and process batteries already exists and continues to increase considering batteries expected to reach the end of life, making recycling the battery an attractive solution.
In 2025, globally, the battery recycled capacity will exceed 750 GWH, and by 2030, its capacity will increase to above 1,500 GWH.3, based on current project announcements.
To capitalize on this strategically important sector growth, certified battery recyclers and those in critical mineral refinery spaces must consider and adapt:
Market outlook for small, medium and large batteries to better understand the available ingredients. A critical journey through the minerals themselves and how this is done domestically in a cost-effective and sustainable way. Best practices for delivering products and services to the growth sector. Building new sources of critical metals (through terminal and scrap materials recycling) domestically.
Increases global supply for refinement of lithium batteries
To match these advances (short-term and long-term), many regions are actively working to further increase the critical mineral supply for the processing and purification of lithium-ion batteries. Lithium-ion battery cell capacity is expected to triple between the current and 2030.4
If a country is serious about increasing its capabilities in its quest to achieve critical mineral independence, battery recycling must be at the forefront. In the long run, this is about building resilience, which reduces supply chain disruption and vulnerability.
Promoting domestic production, increasing battery recycling, and forming strategic partnerships with both the public and private sectors are important to achieving success. The time to act is now.
reference
Based on https://www.iea.org/reports/recycling-of-critical-minerals https://www.iea.org/reports/ev-battery-supply-chain-sustainability https://www.iea.org/data-and-statistics/charts/expected-battery-recycling-capacity-by-region, An-Current-Announcements-2023-2030 https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/battery-2030-sustainable and circular
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