Financial viability of electric vehicle lithium-ion battery recycling

Laura Lander,Tom Cleaver,Mohammad Ali Rajaeifar,Viet Nguyen-Tien,Robert J.R Elliott,Oliver Heidrich,Emma Kendrick,Jacqueline Sophie Edge,Gregory Offer

doi:10.1016/j.isci.2021.102787

Laura Lander, Tom Cleaver + Show 7 more

Open Access

https://doi.org/10.1016/j.isci.2021.102787

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Abstract

SummaryEconomically viable electric vehicle lithium-ion battery recycling is increasingly needed; however routes to profitability are still unclear. We present a comprehensive, holistic techno-economic model as a framework to directly compare recycling locations and processes, providing a key tool for recycling cost optimization in an international battery recycling economy. We show that recycling can be economically viable, with cost/profit ranging from (−21.43 - +21.91) $·kWh−1 but strongly depends on transport distances, wages, pack design and recycling method. Comparing commercial battery packs, the Tesla Model S emerges as the most profitable, having low disassembly costs and high revenues for its cobalt. In-country recycling is suggested, to lower emissions and transportation costs and secure the materials supply chain. Our model thus enables identification of strategies for recycling profitability.

Highlights

The decarbonization of the transport sector is a critical step in the efforts to drastically reduce global greenhouse gas (GHG) emissions (Creutzig et al, 2015; Hill et al, 2019)
The UK, as origin of the EoL lithium-ion batteries (LIBs), with the recycling locations in Belgium, China, South Korea, and the US, were chosen to be representative of the current global battery economy, where battery use and recycling stages are often located in different parts of the world
The NRP is discussed with regards to transportation, disassembly, and recycling costs, as well as the revenue generated from recovered materials

Summary

Introduction

The decarbonization of the transport sector is a critical step in the efforts to drastically reduce global greenhouse gas (GHG) emissions (Creutzig et al, 2015; Hill et al, 2019). The LIB market is predicted to grow exponentially, due to an industry and policy push and consumer pull of EVs (International Energy Agency, 2019). The demand for raw materials will drastically rise (Gaines, 2018; Jones et al, 2020). This is of particular concern for the supply of critical materials such as lithium and cobalt (Critical Raw Materials Resilience: Charting a Path toward greater Security and Sustainability, 2020). A predicted 23 million EV cars sold globally in 2030 could lead to 5,750,000 tonnes of retired batteries by 2040, assuming a battery lifetime of 10 years and 250 kg per battery pack (International Energy Agency, 2019)

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