The “Doomsday Clock”, created by a group of renowned scientists, including Albert Einstein, is now just 90 seconds to midnight. While the clock is only a symbolic representation of the time left before the complete annihilation of the human race, it begs the attention of humanity to mend its course and avoid hitting the “midnight” mark. This has prompted world leaders to join hands in the fight against climate change. One of the key moves aiding this movement is to focus on reducing tailpipe emissions from internal combustion engine (ICE) vehicles, which account for the largest share of global greenhouse gas emissions at 12 per cent.

Several alternatives have come up to replace ICE vehicles, such as battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs). All of these new-age vehicles, except the FCEVs, rely on lithium-ion batteries (LIBs) to a great extent to reduce tailpipe emissions. To further reduce GHG emissions, the transition from fossil fuels to renewable energy relies on LIBs to store energy during periods of excess supply and low demand. Therefore, it is not too far-fetched to say that lithium-ion batteries form an intrinsic part of our efforts to reverse the effects of climate change. In fact, it is estimated that the entire LIB value chain is expected to grow at a 30% CAGR until 2030, reaching a staggering value of over $400 billion for a 4.7 TWh capacity.

Richest source of lithium

As is common knowledge, lithium-ion batteries mostly consist of some less abundant metals such as cobalt, nickel, and lithium, along with copper and aluminium. The mentioned trifecta of metals is not only scarcely available and controlled by a handful of countries, but it is also quite expensive. In 2022, the prices of these metals reached an all-time high due to a surge in demand for lithium-ion batteries to power all kinds of electric vehicles. The sheer economic value of the metals alone warrants an all-out approach to ensuring that these metals, once mined, do not end up in a landfill.

One must ask, “How is a LIB different from any other ore of cobalt, lithium, or nickel? Can it not be treated as an ore and mined to extract these metals out of it?” For comparison, the 0.3 per cent concentration of lithium in the Salars of Chile, Bolivia, and Argentina is considered high, whereas LIBs contain up to 7 per cent of lithium (carbonate). Similarly, for cobalt and nickel, typical ore concentrations range from 0.2 to 2 per cent, whereas LIB contains 10-15 per cent cobalt and nickel by weight. This makes LIB the richest source of lithium, cobalt, and nickel in the world.

Effect of cost cuts

The recycling of lithium-ion batteries is projected to become a thriving industry with an estimated value of $30 billion by the end of this decade. This remarkable growth is primarily fuelled by two significant factors. First, recycling plays a crucial role in supporting the sustainable expansion of electric mobility and renewable energy sources. As the demand for electric vehicles and renewable energy systems continues to rise, the recycling of lithium-ion batteries becomes essential to manage the lifecycle of these technologies and minimize environmental impact. Secondly, recycling batteries also contributes to reducing the cost of battery production. Through various recycling methods, substantial cost savings can be achieved, including a potential 43 per cent reduction in production costs. Given that battery production constitutes a significant portion of the overall cost of electric vehicles, such cost reductions can have a profound effect on end consumers, making electric mobility more affordable and accessible.

In addition to the economic advantages, recycling lithium-ion batteries also offers significant environmental benefits, including a potential 38 per cent reduction in energy consumption and an impressive 94 per cent reduction in carbon footprint. Recycling ensures prevention of leaching of harmful metals such as cobalt, nickel and lithium, and electrolytes into the environment, thus safeguarding water resources from pollution. Recycling creates a sustainable equilibrium between the demand and supply of these metals, reducing reliance on the extraction of fresh metals through mining operations. This reduction in mining helps address some of the concerns related to socio-political conditions associated with current mining practices. By promoting recycling, substantial progress can be made towards minimizing the environmental impact of battery disposal and foster a more sustainable approach to resource management.

The author is co-founder and Chief Operations Officer, Metastable Materials