Nickel Institute: Progress and Challenges in Lithium-Ion Battery Recycling in Japan [New Energy Summit]

At the 2025 (10th) New Energy Industry Expo - Lithium Battery Recycling Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Kenji Takeda, the Chief Representative of the Nickel Institute Japan Office, shared insights on the topic of "Progress and Challenges in Lithium-ion Battery Recycling in Japan." He noted that while the adoption of EVs may be slowing down, lithium-ion batteries will remain the mainstream for now. The cathode materials are continuously evolving. Nickel and cobalt were once the primary materials, but now LFP is being used in EVs. Keep an eye on future changes. Companies are improving the reuse and recycling technologies for EV batteries, but it may take some time before these are practically applied. Future EV batteries might use materials that are cheaper, safer, and have lower resource risks, so reuse and recycling businesses need to consider this (key materials may change). Lithium-ion Battery Applications Main Use Shifts to EVs: Before 2010, lithium-ion batteries were commercialized by Sony in 1991, primarily used in small devices like smartphones, PCs, and mobile devices, with a small amount used in cars as hybrid batteries. After 2020, besides small devices, EVs became the absolute mainstream. Production and usage will significantly increase, with the cathode material trend shifting from ternary to LFP. Besides EVs, the demand for storing renewable energy (power systems) will also rise. EV Sales Trends: Subsidies drove the rapid growth of EVs, with pure EV sales nearing 10 million units in 2023. In 2024, the growth rate slowed down. The production increase trend is expected to continue for some time. Although battery production is significantly increasing, resource issues are starting to gain attention. Japanese Automakers' Moves: Toyota had predicted sales of 1.5 million units by 2026 but revised this down to about 1 million units in September 2024. However, the company has not yet changed its forecast of reaching 3.5 million units by 2030. Honda has set a goal to convert all its sales to EVs/fuel cell vehicles by 2040. This time, they explained the path to achieving this goal. The company plans to maintain total sales at around 5 million units and convert the remaining 3 million units to hybrids by 2030. As of 2024, this goal remains unchanged. Recyclable Resources in Power Batteries When recycling, the valuable parts usually are: Nickel-metal hydride batteries; nickel, rare earths, etc.; ternary lithium batteries (NMC, NCA); electrodes (copper, aluminum); cathode materials (nickel, manganese, cobalt); anode materials (carbon?); lithium in cathode materials and electrolyte; LFP batteries Cathode materials (iron, phosphorus)... will they still be valuable?; electrodes, anode materials, lithium, etc., are the same as in ternary batteries. Not all used materials can be recycled (valuable). LIBs in Power Systems Effective use of renewable energy (Germany lost 6.5 billion kWh in 2020, Japan lost 800 million kWh in 2022?) California plans to use 100 GWh; Australia's 129 MWh will bring annual revenue of 4.5 billion AUD. LIBs in Power Systems and Usage Trends By 2030, hundreds of GWh/year of capacity are expected to be introduced (comparable to EVs) Large capacity, many options when considering price and maintainability, including redox flow batteries, lead-acid batteries, sodium-sulfur batteries, LFP-based lithium-ion batteries, nickel-zinc batteries, sodium-ion batteries, used EV batteries, etc.; Considering fire hazards and restrictions on hazardous materials, lithium-ion and sodium-sulfur-based batteries may be avoided in large-scale applications... Home batteries are still expensive in Japan and have not yet become widespread. Collection and Reuse of Lithium-ion Batteries Lithium-ion Battery Recycling General Recycling Process for Lithium-ion Batteries EV Battery Collection Recycling systems for lead-acid and small batteries have already been established. Recycling systems for lithium-ion batteries have also started operating. But what if they are used as second-hand or reused batteries? "Reuse" of EV Batteries Creating new reuse and recycling purposes for used batteries of the EV "LEAF"; This pioneering initiative has been highly praised. We look forward to seeing more of their achievements in the future. Toyota and JERA's Energy Storage System Used batteries are connected in series, utilizing residual capacity by starting production and bypass switching in microseconds. In principle, a large number of batteries can be connected at low cost. Unless this is large-scale and public (mandatory), it is difficult to maintain the value of reuse. Will these systems for effectively using used batteries become more widespread in the future? Reuse Issues of Secondary Batteries EV batteries can be reused after about 15 years (the average lifespan of a household car is 14.7 years). However, battery technology is continuously advancing towards higher energy density and lower cost. Therefore, when old batteries are reused after more than a decade, they may already be outdated. Thus, whether the cost of reuse can be recovered and whether these batteries will be actually used are questions worth considering. Therefore, it is necessary to establish legal and regulated methods for the reuse of old batteries. Lithium Battery Recycling in Japan Battery Recycling by Japanese Non-Ferrous Metal Companies Non-ferrous metal companies and recycling companies handling nickel, cobalt, copper, etc., are developing lithium-ion battery recycling processes. Many companies are using various subsidies provided by the Ministry of Economy, Trade and Industry, and these companies have already established pilot plants. In the future, will obtaining raw materials (EV batteries) become an issue? With the spread of EVs, many other companies are involved in the pre-treatment process from battery collection to crushing and separation, and this number may increase in the future. EV Battery Recycling: Pre-treatment Example ① Pre-treatment: Collection - Discharge - Roasting to achieve harmlessness, this part is difficult, it affects subsequent processes. Roasting and sorting using cement processes Use and Future Recycling of Nickel and Cobalt Global Nickel Production Trends Nickel production growth is not as fast as EV sales, but since 2022, Indonesia's production has surged. Changes in Global Nickel Consumption Nickel consumption continues to grow steadily. Stainless steel remains the main consumer. Usage in batteries is increasing. Battery Demand Forecast EV Battery Weight Density: 130 Wh/kg (equivalent to the current LEAF) As for the 2030 forecast, conservatively, Scenario 1 may occur. Scenario 2 may occur. Scenario 4 is also possible in the most optimistic case. *The LEAF battery shown here is representative of the ternary system (nickel, cobalt, manganese), but lithium-ion batteries developed for EVs have made considerable progress and are making strides in increasing capacity (density). As of 2022, some LFPs have exceeded this weight density. Next-Generation Secondary Batteries and Their Raw Materials Summary The adoption of EVs may be slowing down, but lithium-ion batteries will remain the mainstream for now. Cathode materials are continuously evolving. Nickel and cobalt were once the primary materials, but now LFP is being used in EVs. Keep an eye on future changes. Companies are improving the reuse and recycling technologies for EV batteries, but it may take some time before these are practically applied. Future EV batteries might use materials that are cheaper, safer, and have lower resource risks, so reuse and recycling businesses need to consider this (key materials may change). Click to view the special report on the 2025 (10th) New Energy Industry Expo.