These Are The 4 Trends That Are Dominating The Battery Market

As the global economy races to become more environmentally safe, batteries become more and more crucial. Not only are batteries essential in electronic devices but for Electric Vehicles (EVs) they are non-negotiable. The global battery market is projected to reach $423.9 billion by 2030, and is projected to grow more than fourfold between 2021 and 2030. Here are some of the trends that are dominating the battery market today.

1 - Increasing Government Oversight 

In 2022, the European parliament provisionally agreed on legislation to regulate the full lifecycle of a battery. These ambitious targets would help increase circularity and sustainability, however, legislators are worried about the success of recycling cobalt and lithium. Similarly, a state appointed advisory group based in California also released a report on policy recommendations to increase recycling efforts. 

Companies like RecycLiCo Battery Materials Inc AMYZF, an EV recycling battery company, are essential to hitting ambitious recycling targets. European targets are not impossible but there is not a strong existing infrastructure to support but with companies like RecycLiCo who are paving the way for lithium recycling and creating an optimistic future.

2 - Supply Chain Shortages 

2022 was met with many supply chain challenges for North American carmakers. EV company Rivian, among others, fell short of their manufacturing targets for 2022 largely because of supply chain challenges and the inability to get the necessary materials. 

Not only have there been major delays for parts, but there are human rights concerns in the existing supply chains. For example, 70% of the world’s cobalt comes from the Democratic Republic of The Congo where health and labor conditions are dangerous. Cobalt is a key component of existing battery composition for EVs. 

Because of supply chain concerns, some carmakers are looking for more domestic solutions in order to control more of the supply chain. One potential solution is using upcycled battery materials that would decrease the reliance on international raw materials from countries with geopolitical instability. 

Companies like RecycLiCo are pioneering upcycled battery material production. In fact, the company just recently received a report stating that their most recent product performed at the same level as existing commercial NMC811 precursor material. In other words, recycled batteries have already been shown to be successful. 

3 - Growing Demand For EVs Will Mean A Rise In Recycled Batteries

There is a continued demand for EVs, In China, electric car sales nearly tripled in 2021, which sales increasing by 65% in Europe and America more than doubling. One of the greatest obstacles to a growing demand for EVs is the rising prices of raw materials like lithium. Manufacturers and legislators are working to invest in recycling programs to meet EV demand.

In September 2022, the U.S. passed the Strategic EV Management Act. This act seeks to maximize the reuse and recycling of end-of-life EV batteries in federal fleet vehicles. The US Department Of Energy has shared they hope to allocate $335 million in funding for lithium-ion battery recycling. 

RecycLiCo remains ahead of the trend and is one of the companies advancing recycling technology. RecycLiCo is a battery materials company focused on recycling and upcycling lithium-ion batteries. It has created a patented, closed-loop hydrometallurgical process that can capture up to 100% extraction of lithium, cobalt, nickel, and manganese used in lithium-ion batteries and integrate the materials into the remanufacturing of new batteries.

RecycLiCo has a battery recycling-upcycling demonstration plant with a process capacity of 500 kg/day of  lithium-ion battery waste, proving the efficiency of their process at scale.

4 - Reducing Battery Costs

One of the biggest barriers to widespread EV adoption is the cost associated with battery replacement. Currently, EV batteries cost between $10,000-$12,000, and although there are new battery compositions being developed, the costs still remain relatively high. 

One way to help drive down costs would be relying more on a circular economy model versus consistently needing new raw materials. A circular economy is one where existing products are recycled and reused to decrease waste and extend the shelf life of difficult-to-mine materials.   A circular economy not only benefits the environment by limiting single-use products and over-extraction of valuable materials but a circular economy can be cheaper in the long run.

Companies like RecycLiCo are instrumental in the circular economy and could help drive down costs in the future, continuing to lead the charge toward a greener future for the battery industry. 

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