North America Ramps Up Battery Recycling Capacity to Close Mineral Loop
Once viewed as a niche supplement to mining, battery recycling is now taking center stage in U.S. and Canadian critical mineral policy. Automakers, recyclers, and governments are aligning funding and infrastructure to capture nickel, cobalt, lithium, and manganese from spent batteries and production scrap. The shift reflects both economic reality—secondary materials are often cheaper to process than new ore—and strategic necessity, as G7 nations look to cut dependency on Chinese refiners.
Key Points:
Li-Cycle Holdings began commissioning its Rochester Hub, capable of processing 35,000 tonnes of black mass annually into battery-grade chemicals.
https://li-cycle.com/Redwood Materials announced expansion of its Nevada facility to increase annual recovery of nickel, cobalt, and lithium to support U.S. gigafactories.
https://www.redwoodmaterials.com/Canadian federal budget earmarked $300M for EV battery recycling projects over the next five years, with priority for Ontario and Quebec locations.
https://www.canada.ca/en/environment-climate-change/news/2025/04/battery-recycling-investment.htmlEuropean automakers are partnering with U.S. recyclers to meet Inflation Reduction Act domestic content thresholds.
Why It Matters:
Secondary Supply as Primary Strategy – With mine development timelines stretching 7–10 years, recycled feedstock can deliver in under 24 months.
Regulatory Pull – IRA compliance rules treat domestically recycled minerals the same as mined ones for EV tax credit eligibility.
Geopolitical Hedge – Recycling reduces exposure to raw mineral supply shocks and export restrictions.
Watchlist Companies:
Li-Cycle Holdings – Specializes in hydrometallurgical recovery; strategically located near U.S. and Canadian gigafactories.
https://li-cycle.com/Redwood Materials – Expanding U.S. closed-loop battery supply chain; high-profile partnerships with Tesla, Panasonic, and Ford.
https://www.redwoodmaterials.com/
Critical Minerals Spotlight:
Nickel – Recovered from cathodes; essential for high-energy-density batteries.
Cobalt – Recovered with high purity; critical for thermal stability in EV packs.
Lithium – Recovery rates improving through hydrometallurgy; key to supply diversification.
Manganese – Increasingly important in emerging battery chemistries; recycling routes under active development.
Action Points:
Monitor commissioning timelines for new recycling hubs; production ramp speed will determine real impact on supply.
Track automaker–recycler partnerships aimed at locking in recycled material flows.
Evaluate regional siting trends; Ontario, Quebec, and Nevada are emerging as recycling clusters.
Watch for policy changes treating recycling as a mandatory part of OEM supply chains.
https://444Critical.com
This update is for informational purposes only and is not financial or legal advice. Information is believed accurate but not guaranteed.