Recycling & Reuse

Recyclers Consider Their Business Models Carefully To Withstand Long-Term Challenges CURRENT NA & EU RECYCLING MARKETS USING “BUY AND SELLˮ MODELS CHINESE MARKET CHARACTERIZED BY MORE CLOSED LOOP PARTNERSHIPS

In short-term, the profit margins of pure-play recyclers are under pressure from low raw material prices. Those that operate in a closed loop/tolling arrangement are more protected from current market dynamics. In the long-term, as end-of-life batteries become more abundant than manufacturing scrap, companies will want to seize the opportunities of the ‘open buy & sellʼ model. To increase value add and improve margins, black mass refiners are vertically integrating in both directions - into collection, shredding/black mass production, and precursor cathode production (pCAM).

Source: Content & analysis provided courtesy of Roland Berger Distinguished Partner). For more information, visit https://www.rolandberger.com/en/Insights/Global-Topics/Battery/.

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