Lithium-ion recycling gets early, modest boost from DOE grant
MIT Technology Review has a story, written by moi, about the $9.5 million in DOE funding that went to Toxco Ltd., the California-based battery recycler that is pretty much the only major game in town when it comes to recycling a full range of lithium-based batteries, at least in North America. The company’s lithium-ion recycling facility is based in Trail, British Columbia, but Toxco plans to use the DOE funding to establish a lithium recycling capability at its existing Ohio plant. When complete, it will be the first facility in the United States capable of recycling plug-in hybrid and all-electric car batteries.
But here’s the tricky part: plug-in vehicles that use lithium-ion chemistries are just now beginning to enter the market, and slowly. We’re not likely to see any kind of meaningful volume until about 2012. And then there’s a 10-year wait before most of these batteries get to a point where they need to be recycled. This long delay makes it difficult for a startup to enter the recycling business, so Toxco has an edge because it can simply scale up as volume builds.
Now, there’s a big debate in the industry about whether we’ll have enough lithium carbonate to supply what’s expected to be a massive market over the next decade. If you believe we’ll run into supply problems, then recycling is a pretty good thing to have as a way to reduce dependence on foreign lithium suppliers, such as Russia, China, and Bolivia. But even if there’s plentyof lithium to supply the market for the next few decades (after all, the amount of lithium used in an electric car battery is quite small), we still need to recycle the batteries if we truly want these cars to be “green.” So Toxco is in a very good position.

Tyler Hamilton is editor-in-chief of Corporate Knights magazine and a business columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the clean technology and green energy market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper.
August 18th, 2009 at 2:45 pm
Good points. Also, we may want to factor in a new development: the buying up of used car batteries for both on and off grid electricity storage. Lithium batteries with 70-80% of their capacity left may cause car owners to think of getting a new battery or entire electric car; for stationary electricity storage such capacity levels are great. What matters more is what this storage will cost, but it’s likely that a good deal more will be paid for it than what recycling companies would be willing to offer (after all, the batteries can still be recycled after their second life as stationary electric storage).
IMHO, this is currently a huge and undervalued market, which is little surprising given the relative lack of electric vehicles on the road today. It may further increase the synergy between electric vehicles and variable renewable energy sources (beyond the more obvious G2V and V2G ideas).