Current worldwide recycling of lithium-ion batteries (“LIB”) is negligible. In fact, in the US, the Environmental Protection Agency (“EPA”) considers that LIB are safe for disposal in landfill. In the US this amounts to 2 billion batteries disposed of annually. However, with the increasing production of electric vehicles LIB recycling will be increasingly demanded and no doubt legislated.

Because recycling is so rare, little research has so far been undertaken to improve recycling methods. Perhaps the most common method is pyrometallurgical or smelting. This is expensive and energy intensive and can only recover nickel, copper and cobalt. Hydrometallurgy is lower cost and can recover lithium and aluminium but requires caustic reagents such as nitric acid.

Other methods are being developed that offer considerable promise, and manufacturers will ultimately take recycling into account when making the batteries.

So on the ASX there are only three companies that are involved to some degree in recycling.

CompanyASX CodeShare Price (c)Shares on Issue (M)Market Cap (M)
Ecograf LtdEGR63455287
Lithium Australia NLLIT11898101
Neometals LtdNMT38545207

Ecograf Ltd

The company plans to manufacture spheroidal graphite for export to battery anode manufacturers worldwide, from a plant to be built at Kwinana, WA. It also plans to develop the Epanko graphite deposit in Tanzania. It has also developed a process to recycle high purity graphite from spent LIBs.

Lithium Australia NL

The company has developed processes for the extraction of lithium from spodumene waste and also produce LIB components. It recycles spent LIBs and produces cathode material.

Neometals Ltd

The company has developed a process to recovery valuable materials from spent LIBs. In joint venture with German company SMS Group it plans to offer recycling services, particularly in Europe. It also has the Barrambie titanium vanadium project and plans to build a lithium refinery.

I would expect that a number of other companies will join the sector in coming years.

07 April 2021 Companies, Markets