Nickel Institute: Progress and Challenges of Lithium-Ion Battery Recycling in Japan 

At the CLNB 2025 (10th) New Energy Industry Chain 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 stated that while the popularization of electric vehicles (EVs) may be slowing down, lithium-ion batteries will remain the mainstream technology for now. The cathode materials are constantly evolving. Nickel and cobalt were once the primary materials, but now lithium iron phosphate (LFP) is being used in EVs. Pay attention to future changes. Companies are improving the reuse and recycling technologies for EV batteries, but it may take some time before these technologies can be practically applied. Future EV batteries may use materials that are inexpensive, safe, and have low resource risks, so the reuse and recycling business needs to take this into account (key materials may change).

Applications of Lithium-Ion Batteries

Shift in Main Usage to EVs:

Before 2010, lithium-ion batteries, commercialized by Sony in 1991, were mainly used in small devices such as smartphones, personal computers, and mobile devices, with a small amount used in vehicles as hybrid power batteries.

After 2020, in addition to small devices, EVs will become the absolute mainstream. Production and usage volumes will increase significantly, with the trend in cathode materials shifting from ternary to LFP. In addition to EVs, the demand for storing renewable energy (in power systems) will also increase.

EV Sales Trends:

Subsidies have driven the rapid growth of EVs, with nearly 10 million pure EVs sold in 2023. In 2024, the growth rate has slowed down somewhat.

The trend of increasing production is expected to continue for some time. Although a significant increase in battery production is underway, resource issues are beginning to attract attention.

Moves by Japanese Automakers:

Toyota had predicted sales of 1.5 million units for 2026, but in September 2024, it revised this figure down to approximately 1 million units. However, the company has not yet changed its forecast of reaching 3.5 million units in sales by 2030.

Honda has set a goal of transitioning all of its vehicles sold 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 approximately 5 million units and convert the remaining 3 million units to hybrid vehicles by 2030. As of 2024, this goal remains unchanged.

Recyclable Resources in Power Batteries

When recycling, the typically valuable parts 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 electrolytes; lithium iron phosphate batteries (LFP)
Cathode materials (iron, phosphorus)... Will they still be valuable?; electrodes, anode materials, lithium, etc., are the same as in ternary batteries.

Not all materials used can be recycled (valuable).

LIBs in Power Systems

Effective utilization of renewable energy (Germany lost 6.5 billion kWh of electricity in 2020, and Japan lost 800 million kWh in 2022?)

California plans to use 100 GWh; Australia's 129 MWh will bring in annual revenue of 4.5 billion Australian dollars.

LIBs in Power Systems and Usage Trends

It is expected that by 2030, hundreds of GWh/year of capacity will be introduced annually (comparable to EVs)

Large capacity, with many options when considering price and maintainability, such as 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 Recycling of Lithium-Ion Batteries

Lithium-Ion Battery Recycling

General Recycling Process for Lithium-Ion BatteriesCollection of EV Batteries

Recycling systems for lead-acid batteries and small batteries have already been established. The recycling system for lithium-ion batteries has also started operation. But what if they are used as second-hand or repurposed batteries?

"Repurposing" of EV Batteries

Creating new repurposing and recycling applications for used batteries from 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, and through start production and bypass switching within microseconds, the residual capacity is fully utilized. In principle, a large number of batteries can be connected at low cost.

Unless this is done on a large scale and openly (mandatory), it will be difficult to maintain the value of repurposing. Will these systems that effectively utilize used batteries become more widespread in the future?

Issues with Repurposing Secondary Batteries

EV batteries can be repurposed after about 15 years (the average lifespan of a passenger car is 14.7 years).

However, battery technology is constantly advancing towards higher energy density and lower cost. Therefore, when old batteries are repurposed after more than a decade, they may already seem outdated. In this case, whether the cost of repurposing can be recovered and whether these batteries will actually be used are issues of concern. Therefore, it is necessary to establish legal and regulated methods for repurposing old batteries.

Lithium Battery Recycling in Japan

Battery Recycling by Nippon Yakin Kogyo Co., Ltd.

Non-ferrous metal companies and recycling companies that handle 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 have established pilot plants. In the future, will access to raw materials (EV batteries) become an issue?

With the popularization of EVs, many other companies are participating in the pre-treatment process from battery collection to shredding and separation, and this number may increase in the future.

EV Battery Recycling: Example of Pre-treatment

① Pre-treatment: Collection - Discharge - Roasting to achieve harmlessness. This part is difficult and affects subsequent processes.

Roasting and sorting using cement technologyUse and Future Recycling of Nickel and Cobalt

Global Nickel Production Trends

The growth in nickel production has not kept pace with EV sales, but there has been a surge in Indonesian production since 2022.

Changes in Global Nickel Consumption

Nickel consumption continues to grow steadily. Stainless steel remains the primary consumer. There is an increasing use in batteries.

Forecast for Battery Demand

Weight density of EV batteries: 130Wh/kg (equivalent to the current LEAF)

As for the forecast for 2030, conservatively speaking, Scenario 1 may occur. Scenario 2 may also occur. Scenario 4 is possible under the most optimistic conditions.

*The LEAF battery shown here is representative of a ternary system (nickel, cobalt, manganese), but lithium-ion batteries developed for EVs have made considerable progress and are advancing in terms of increasing capacity (density).

As of 2022, some LFP batteries have exceeded this weight density.

Next-Generation Secondary Batteries and Their Raw Materials

Summary

The popularization of EVs may be slowing down, but lithium-ion batteries will remain the mainstream for the time being.

Cathode materials are constantly evolving. Nickel and cobalt were once the primary materials, but now LFP is being used in EVs. Please stay tuned for future changes.

Companies are improving the reuse and recycling technologies for EV batteries, but it may take some time before they are practically applied.

Future EV batteries may use materials that are inexpensive, safe, and have low resource risks, so the reuse and recycling business needs to take this into account (key materials may change).

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