Navigant Research Blog

The Growing Importance of Recycling Spent Advanced Battery Materials

— April 27, 2017

Advanced batteries across all applications are proliferating the market in unfathomable numbers. Navigant Research expects advanced batteries to reach a cumulative 24.2 GW in new capacity globally by 2020—for stationary energy storage alone. As these assets have lifespans ranging from 4 to 20 years depending on the technology, the issue of what to do with these batteries when they reach the end of their usable lives is an important question that technology manufacturers, system owners, and customers must be able to answer. Second-use options are viable in some sectors, but recycling spent batteries will be a major market in the coming years. Manufacturers and governments around the world are recognizing the importance of recycling and how it translates to long-term sustainability goals.

Benefits of Recycling Batteries

Lead-acid batteries have been utilized in the market for several decades, but advances in more sophisticated technologies like lithium ion (Li-ion) and flow batteries have encroached on lead-acid market share. The spent lead-acid assets are retired and recycled in large amounts on a daily basis. An example of this is China’s announcement of doubling its lead recycling target to 2.5 million tons by 2020. China arrived at this target because the average lead-acid battery life is 4 years; batteries made in and around 2015-2016 will be available for recycling by 2020. Lead-acid battery recycling efforts are also ramping up in the United States. California lead battery manufacturers and consumers have to pay a $1 fee for each battery they make or buy following the implementation of the Lead-Acid Battery Recycling Act (AB2513). Among other recommendations, several California government officials requested adding an additional $15-$20 to each lead battery sold to help process it after its usable life.

Li-ion batteries are a bit trickier to recycle. Available in items ranging from consumer electronics to EVs, extracting the most valuable materials inside—namely, lithium and cobalt—are important to consider when reprocessing these batteries. Compounded with forward-looking lithium availability and supply chain issues, securing lithium access will be important for the industry in the future. Li-ion battery recycling is in its early stages, and there are only a handful of these plants in existence today. With few Li-ion battery chemistries available, the lack of standardization plays a role in limiting the emergence of more recycling facilities and best recycling practices for these batteries. Today, recycled lithium can be up to 5 times the cost of newly mined resources; the cost differences have limited demand for lithium recycling to date, but future price increases and new regulations can change this.

Raw material prices for advanced batteries have sporadically changed this past decade and lithium prices alone have nearly tripled. Other factors like demand in competing sectors (e.g., pharmaceuticals, construction, etc.), geopolitical relationships, and environmental concerns will also play a role in the future of battery material supply chains. Recycling advanced batteries is likely to be one of the principal methods to combat against volatile raw material prices and resource availability.

New Revenue Streams

Battery OEMs should look to partner with raw material suppliers, users, and governments to gain a strong position in their respective supply chains and increase collaboration across different sectors. Considering alternatives (e.g., second life usage), the battery recycling industry has the potential to generate significant returns. Companies that position themselves to take advantage of retiring assets will be able to access new revenue streams on top of existing businesses.

 

Automated Taskforce Developments Inching Forward

— April 8, 2016

police unmanned aerial vehicleDrones—also known as unmanned aerial vehicles, or UAVs—are quickly becoming commonplace in today’s world, performing such tasks as delivery, surveillance, and agricultural monitoring. Drones are not the only robotics coming to the forefront, however. The DARPA Robotics Challenge encourages teams to make humanoid robots that can accomplish certain tasks. Last year’s finals took place in June of 2015. The goal of the DARPA competition, aside from gazing in awe at the future, is to further advance robotics.

Following the 2011 Fukushima Daiichi disaster in Japan, it became clear that there is a need for robots that can perform emergency tasks when it is unsafe for humans to enter an area. The DARPA competition had robots performing “eight tasks relevant to disaster response, among them driving alone, walking through rubble, tripping circuit breakers, turning valves and climbing stairs.” There are certain tasks that are impossible, unnecessary, or unsafe for humans to perform—robots are marching forward to fill that gap.

Filling the Gap

Many companies are also developing advanced robots for purposes of their own. For example, Apple recently unveiled Liam, a robot designed to disassemble iPhones for recycling. Liam has been in production for over 3 years, largely in secret. It was revealed at Apple’s spring 2016 product launch. The machine has 29 freestanding robotic arms, each designed to remove a piece of the iPhone. The machine has not been perfected yet—it has not been proven at full scale and is currently only functional for only iPhone 6s models. However, Liam represents a broader shift in clean technology. Companies are increasingly relying on robotics for assembly and, in Apple’s case, disassembly of products.

In turn, consumers are demanding more sustainable and recycled goods. Current recycling can be extremely inefficient, often involving a great deal of human labor. As a result of inefficient recycling, e-waste production in 2012 rose to a whopping 50 million tons according to United Nations estimates. A shift toward more robotics will make separation of recycling easier, faster, and more energy efficient, ultimately leading to an increase in post-consumer recycled goods.

The idea of robots rendering humans obsolete is one that has been played out in science fiction across the years. But we are entering an age where we can address the needs of a technology-dependent society with technology. The Industrial Revolution brought with it an unprecedented boom in human population as well as clouds of coal-fired pollution. The increasing popularity of personal, small-scale computing technology brought increased productivity and advancements in science, as well as a massive spike in toxic electronic waste. Nuclear power has brought electricity to millions, as well as horrifically dangerous disasters. It seems as though we are finally filling the technological gaps and patching the disadvantages of past technological advancements. Who would have guessed it might be by fitting a robot-shaped bandage over a machine-shaped hole?

 

Disrupting the Trash Business

— May 5, 2014

One of the hallmarks of human society’s advance has been the ability to distance itself from the trash it produces.  This collection and disposal of waste – a role traditionally played by large waste haulers like Waste Management (United States) and Veolia (France) – has historically involved picking up trash from the curb and dumping it in a remote landfill.  As circular economy efforts begin to materialize, however, and emerging technology solutions increasingly target trash as a strategic resource, we are learning to get a little cozier with our trash … with disruptive consequences for the waste industry.

Solena Group’s recent announcement that it has selected a site to build a first-of-kind waste-to-advanced biofuels facility outside of London demonstrates how quickly the waste industry is evolving.  The facility will produce waste-derived aviation biofuels for British Airways and renewable diesel, as well as excess power for the electrical grid, while diverting 50 million tons of municipal solid waste (MSW) from crowded landfills annually.

To be sure, the management of solid waste remains big business.  According to the United Nations Environmental Program (UNEP), Organisation for Economic Co-operation and Development (OECD) countries spend an estimated $120 billion annually on municipal waste management.  In low- and middle-income countries, urbanization and rising levels of affluence are projected to drive a four- to five-fold increase in waste management costs in places where 20% to 50% of recurring municipal budgets are already spent managing waste.  For upstart ventures, the waste value chain is potentially big business.  These entities are causing a disruption mirroring the  impact of distributed generation on the traditional electric utility business model.

Trash Doesn’t Equal Prosperity

The evolution of the waste management industry is precipitated by two key trends.

First, conscientious consumers who aim to trim consumption excess and reduce bulky packaging have contributed to a slow decline in per-capita waste generation in developed economies.  While the total volume of MSW generated globally is expected to nearly double in a little over a decade, the decoupling of waste generation from GDP growth in Europe and the United States is a cause for concern among haulers.  Less waste means less potential revenue from hauling and disposal.  Like electric utilities faced with increasing adoption of distributed energy resources, there is very little waste haulers can do to stem this trend.

The second trend involves the proliferation of zero waste policies seeking to divert waste from landfills.  These policies indirectly bolster waste’s value as a strategic resource, rather than something to be managed for health and environmental reasons alone.  This paradigm shift carves out opportunities for companies, such as Solena Group, that seek to mine trash for strategic resources and carbon, often at the expense of traditional waste management company revenue.

On the Offensive

Waste haulers, seeking to drive new revenue growth, are increasingly going on the offensive.  Since 2007, Waste Management, the largest waste hauler operating in the United States, has been engaged in a multiyear transformation aimed at turning its business model on its head.  Traditionally designed to pick up waste and drop it into a landfill, the company has invested between $300 million and $400 million in a portfolio of startup waste-to-energy solutions providers in order to take waste materials and put them to their highest and best use.  Rather than pick one technology, the company is betting on a suite of solutions gaining incremental market share.

As Navigant Research’s forthcoming report, Smart Waste, will highlight, the parallels between the electric utility and the waste hauler are many.  To maintain market share, both sets of companies are adapting, rather than resting on poles and wire or hauling and disposal laurels.

 

Blog Articles

Most Recent

By Date

Tags

Clean Transportation, Digital Utility Strategies, Electric Vehicles, Energy Technologies, Policy & Regulation, Renewable Energy, Smart Energy Practice, Smart Energy Program, Transportation Efficiencies, Utility Transformations

By Author


{"userID":"","pageName":"Recycling","path":"\/tag\/recycling","date":"9\/24\/2017"}