via AG Metal Minor
The past 12 months have been tumultuous years for the electronics market. This is true whether you are a raw material miner, refiner, manufacturer or end user.Indeed, an ongoing problem battery metal prices and supply security impacted millions. After demand increased dramatically, Chinese battery makers began snapping resources left and right. This has prompted major automakers to scramble to tighten supply contracts for raw materials and related downstream battery supply chains. Both the cost and security of supply have become major concerns for both the commercial and defense industries. In fact, these concerns even reached the White House. As with rare earth metals, reliance on foreign sources puts the supply chain at risk.
So this week was the perfect time to catch up with David Klanecky. He is the CEO of Cirba Solutions, North America’s largest and perhaps the most professional battery recycling company.
Promoting recycling of battery metals and components
Cirba solution We currently operate six processing facilities across the United States. In September, the company announced his seventh structure, which it plans to build in Arizona. We hope to have at least 13 facilities fully operational by 2026. Among other things, Cirba Solutions recognizes that both the availability and demand for recycled battery materials will need to expand rapidly over the next decade. In fact, this drives his $200+ million investment in existing facilities in Ohio.
“The need for critical minerals has increased, and will continue to accelerate, with a focus on the electrification of transportation,” says Klanecky. “Over the next five years, more attention will be focused on recycled content and domestic supply.”
Additionally, the company sees the importance of a closed-loop domestic recycling industry. This is not only for self-sufficiency, but also for environmental reasons. Without a proper recycling industry, electronic components such as batteries just end up in landfills.
Battery Metal: Any Service
Klanecky explains: We do this with a strong focus on sustainability and safety, which also benefits our shareholders. ”
However, the lithium-ion and nickel-cadmium battery recycling industry is still in its infancy. Cirba Solutions is the market leader in all battery chemistries, including lithium-ion and lead-acid battery recycling. They can confirm that the US recycles about 99% of lead-acid batteries. In addition, approximately 95% of the lead is recovered and reused. However, for home appliances, the recycling rate is only around 10%.
We all share that responsibility. After all, how many old phones, speakers, and portable chargers are lying in each of us’ drawers? Many of us would be too embarrassed to answer.
Proven recycling model that requires infrastructure
Fortunately, this upward potential gives the growing recycling industry a sizable target market. Unlike rare earths, which struggle to be profitable while mining, refining and recycling, battery metal recycling companies like Cirba Solutions have been profitable for years. Even better, they provide battery manufacturers with refined salts (nickel, cobalt, manganese sulfates, etc.), lithium carbonate and graphite at prices and purity levels comparable to imports. The latter often come from China and are a direct result of resource mining.
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That said, the technologies involved are still sophisticated and capital intensive. This includes mechanical separation, chemical extraction, and purification. Therefore, depending on the product to be introduced, dedicated equipment may be required. For example, lead-acid products require different processes than nickel, cadmium, or lithium-ion batteries.
Also, the nationwide collection and safe transportation of these materials is key to the growth of the industry. After all, some of these items are potentially dangerous and must be handled with extreme caution. An organizational infrastructure that can accommodate batteries is essential.
“We’re working on that right now,” says Klanecky. “We pride ourselves on our collection, packaging and logistics. The extensive footprint of our services is a differentiator that has taken us years to develop and we appreciate the accessibility our customers have.” ”
We need a vision to improve battery metal recycling
It’s actually much easier to create a collection contract for EV batteries. This is primarily due to the high volume of centralized disposal options such as car dealerships and specialized dismantlers. In fact, Toyota has had such a system in Prius batteries for over a decade.
However, consumer electronics require much more complex collection arrangements covering multiple channels. Without it, it would be difficult to get serious about taking advantage of the opportunity to recycle all of our products. Existing structures have valid precedents. Still, achieving the level of recycling found in lead-acid and EV batteries requires a paradigm shift in consumer attitudes.
One thing we can demonstrate is that some consumers are willing to recycle items even though the financial return is relatively low. And economies of scale create new opportunities to offer modest financial incentives in exchange for higher recycling rates.
On the other hand, there remains great potential to harness other natural resources: recycled batteries and devices. With the right investments now, the US recycling industry could become a vital part of his chain of supply in the years to come.
stuart burns at cirbasolutions.com
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