Financial viability of electric vehicle lithium-ion battery recycling

Laura Lander; Tom Cleaver; Mohammad Ali Rajaeifar; Viet Nguyen-Tien; Robert J R Elliott; Oliver Heidrich; Emma Kendrick; Jacqueline Sophie Edge; Gregory Offer

doi:10.1016/j.isci.2021.102787

Financial viability of electric vehicle lithium-ion battery recycling

iScience. 2021 Jun 25;24(7):102787. doi: 10.1016/j.isci.2021.102787. eCollection 2021 Jul 23.

Authors

Laura Lander^{1

2}, Tom Cleaver³, Mohammad Ali Rajaeifar^{4

5}, Viet Nguyen-Tien^{6

7}, Robert J R Elliott^{6

7}, Oliver Heidrich⁸, Emma Kendrick^{7

9

10}, Jacqueline Sophie Edge^{1

2}, Gregory Offer^{1

2}

Affiliations

¹ Department of Mechanical Engineering, Imperial College London, London, UK.
² The Faraday Institution, Quad One, Becquerel Avenue, Harwell Campus, Didcot, UK.
³ Cognition Energy Ltd, 30 Upper High Street, Thame, Oxfordshire, UK.
⁴ School of Engineering, Newcastle University, Newcastle upon Tyne, UK.
⁵ Faraday Institution, ReLiB Project, Newcastle University, Newcastle upon Tyne, UK.
⁶ The Department of Economics, JG Smith Building, University of Birmingham, Birmingham, UK.
⁷ Faraday Institution, ReLiB Project, University of Birmingham, Birmingham, UK.
⁸ Tyndall Centre for Climate Change Research, Newcastle University, Newcastle upon Tyne, UK.
⁹ Birmingham Centre for Strategic Elements and Critical Materials, University of Birmingham, Birmingham, UK.
¹⁰ School of Metallurgy and Materials, University of Birmingham, Birmingham, UK.

Abstract

Economically viable electric vehicle lithium-ion battery recycling is increasingly needed; however routes to profitability are still unclear. We present a comprehensive, holistic techno-economic model as a framework to directly compare recycling locations and processes, providing a key tool for recycling cost optimization in an international battery recycling economy. We show that recycling can be economically viable, with cost/profit ranging from (-21.43 - +21.91) $·kWh^-1 but strongly depends on transport distances, wages, pack design and recycling method. Comparing commercial battery packs, the Tesla Model S emerges as the most profitable, having low disassembly costs and high revenues for its cobalt. In-country recycling is suggested, to lower emissions and transportation costs and secure the materials supply chain. Our model thus enables identification of strategies for recycling profitability.

Keywords: electrochemical energy storage; energy application; energy policy; energy resources; energy systems.