BASF and Nanotech Energy partner on first ‘closed-loop’ lithium battery recycling process in the US

BASF and Nanotech Energy have partnered to create a cutting-edge lithium battery recycling system that will cut CO2 emissions from battery production by 25%.

The lithium battery recycling project will be the first closed-loop system in the US, helping to decarbonise North American battery production significantly. The collaboration will see BASF, an industry-leading producer of battery materials, develop cathode active materials from recycled metals in Battle Creek, Michigan. These recycled battery materials will then be used to produce new lithium-ion batteries by Nanotech Energy – experts in graphene-based energy storage products.  Utilising recycled battery materials is expected to reduce the carbon emissions from lithium battery production by around a quarter compared to using primary metals from mines.

Establishing a circular economy for battery materials

BASF is on a mission to create a circular economy for batteries worldwide. BASF has already established a battery recycling capacity in Europe and is providing recycling services and cathode active material from recycled metals as a closed-loop in Asia. Now, BASF is turning its attention to the West. The North American venture will also collaborate with American Battery Technology Company (ABTC) and TODA Advanced Materials Inc. (TODA).

Both organisations’ expertise will be crucial to the project, as ABTC is an experienced lithium battery recycling company in Reno, Nevada, and TODA has decades of experience in manufacturing specialised precursors for cathode active material (pCAM). Daniel Schönfelder, Senior Vice President of Battery Base Metals and Recycling at BASF, commented: “Our partnership with Nanotech, ABTC, and TODA marks an important step for BASF’s global battery recycling business. “Now, we are establishing the first closed-loop system in North America. This enables BASF and Nanotech to produce lithium-ion batteries with locally recycled content.”

How will the process work?

Battery scrap and off-spec material from Nanotech’s pilot plant in California and from its scheduled commercial facility will be recycled by ABTC. These recovered battery materials, such as nickel, cobalt, manganese, and lithium, will then be employed by TODA and BASF to develop new precursors and cathode active materials, respectively. These recycled battery materials will be then used again by Nanotech to produce new lithium batteries – creating a circular economy in North America.

Curtis Collar, Chief Marketing and Sales Officer at Nanotech Energy, explained: “By working together, our four companies can pool their expertise and drive better and more sustainable outcomes for the entire North American electric vehicle and consumer electronics industries.

“This is a major milestone among the ongoing advances and growth of the lithium-ion battery market, and we are proud to play such a key role in the reduction of CO₂ emissions along the battery value chain.”