Recycling & Reuse

EU Recycled Content Mandates Likely To Have Minimal Impact On Battery Costs The EU Battery Regulation mandates a minimum recycled content in batteries used in the EU in the future. Automakers and battery makers will scramble for recycled material, and if this is combined with a lack of available feedstock, it is possible that secondary material commands a premium. However, the impact on overall battery cell production costs is likely to be minimal, and is less for LFP than that of NMC, as only lithium carbonate is affected. European manufacturers are particularly concerned about the economics of recycling LFP. Given the comparatively lower value of constituent materials, it may deter black mass refiners in the region from establishing LFP recycling capacity and producing lithium carbonate. The most likely scenario is that regulations force LFP recycling to take place and the burden placed on the downstream manufacturer. However, even under a ‘tolling feeʼ, the overall lifetime cost of using LFP is significantly less than that of NMC.

Source: Content & analysis provided courtesy of CRU Group Distinguished Partner). For more information, visit https://www.crugroup.com.

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