As the world increasingly turns towards electric vehicles (EVs) to mitigate climate change and decrease reliance on fossil fuels, a critical challenge looms large: the sustainable sourcing and recycling of the materials that comprise EV batteries. With the growth of the electric vehicle market comes an urgent necessity to ensure that the materials used in battery production can be sustainably sourced and effectively recycled. Two innovative European startups have emerged, significantly advancing EV battery recycling technology, with the potential to reshape the landscape of the industry.
The Current Landscape of Battery Sourcing
Currently, China dominates the global battery supply chain, controlling a significant portion of the market for essential materials like lithium, cobalt, nickel, and manganese. The environmental impact of mining for these virgin materials is profound. Mining operations often result in land degradation, water pollution, and the depletion of local resources, all of which contribute to higher carbon emissions. As the demand for electric vehicles continues to surge, the need for sustainable practices in sourcing these critical materials becomes increasingly urgent.
Altilium: Pioneers in Cathode Material Recycling
One of the most promising players in this space is Altilium, a British battery recycling startup making significant strides in the area of cathode material recycling. Altilium has developed a process that produces recycled cathode active materials that perform almost identically to those derived from newly mined materials. These cathode materials are essential components of EV batteries, containing valuable elements such as lithium, cobalt, nickel, and manganese.
Altilium’s breakthrough offers a compelling case for reduced reliance on imports from China. By utilizing recycled materials, the startup not only contributes to a decrease in greenhouse gas emissions—reportedly lowering CO2 output by 70% compared to newly mined materials—but also achieves a cost reduction of around 20%. “This is a real technical breakthrough that really helps de-risk the use of recycled materials for automakers,” noted Christian Marston, Chief Operating Officer of Altilium, in an interview with Reuters.
Such advancements could potentially stimulate a shift in the EV battery landscape, encouraging manufacturers to adopt recycled components in their vehicles.
Tozero: Transforming Graphite Recycling
In parallel, Munich-based startup tozero is addressing another crucial material in lithium-ion batteries: graphite. Graphite accounts for an astounding 40% of the carbon footprint of a typical lithium-ion battery. Tozero is employing a hydrometallurgical recycling process in its pilot plant to reclaim and reuse graphite, with ambitious plans to achieve “net zero” emissions by utilizing renewable energy for its operations.
Tozero is currently in discussions with major automakers to supply them with recycled graphite as they ramp up their production capabilities. The company’s vision includes establishing a pilot plant within the next two years, targeting an annual production capacity of approximately 2,000 tons of recycled graphite by 2027. This volume is estimated to meet the battery needs of around 50,000 electric vehicles, a significant step towards sustainable production practices.
Regulatory Pressure and Industry Change
The advancements made by Altilium and tozero are timely, aligning with impending European Union regulations that will mandate minimum percentages of recycled lithium, nickel, and cobalt in new EV batteries. Starting in 2030, manufacturers will be required to include at least 6% recycled lithium and nickel, as well as 16% recycled cobalt in their battery compositions. Through their pioneering recycling processes, Altilium and tozero are poised to help European automakers meet these ambitious targets.
Beyond compliance with new regulations, these startups are also contributing to a broader goal of reducing the automotive industry’s reliance on Chinese supply chains. Major corporations backing Altilium, including Sociedad Quimica y Minera de Chile (SQM) and trading giant Marubeni, underscore the growing recognition of the importance of sustainable sourcing of battery materials. Notably, Altilium is collaborating with Jaguar Land Rover to utilize recycled materials sourced from old Jaguar I-Pace vehicles, showcasing a practical application of recycling tech in mainstream manufacturing.
Tozero has also garnered attention, securing 17 million euros in funding from investors, including automaker Honda. The company is actively engaging with global automakers, emphasizing the growing interest in EV battery recycling technologies.
Conclusion
As the electric vehicle market accelerates on its path toward growth and adoption, the importance of sustainable battery sourcing and recycling cannot be overstated. The advancements achieved by Altilium and tozero not only promise to reduce the environmental impact associated with virgin material mining but also offer significant economic benefits through cost savings for manufacturers. With the impending EU regulations adding a sense of urgency to the transition towards recycled materials, these startups are leading the charge toward a more sustainable future for electric mobility. With concerted efforts from innovators and policymakers alike, the EV industry can truly embody the principles of sustainability and responsibility.