“But if you look at the level of capacity that’s coming online, it’s huge in relation to what we need.”
Global capacity for recycling batteries will more than double between 2021 and 2025, outpacing this year’s waste supply, according to the CES.
Several well-known specialized recycling companies, like Glencore Plc, are heavily investing in converting waste into the materials needed to power the electric vehicle revolution.
While the industry waits for early EV models to start turning up in large numbers at garbage yards, shortages are expected to last well into the next decade.
By 2025, there may be three times as much room for recycling factories as there will be scrap to power them. Naturally, the old batteries will eventually start to pour in, but recycling businesses must exist in the interim.
Before legislation requiring companies to use more recycled materials in their batteries starting in 2030, automakers in Europe urgently need to establish factories, the Bloomberg report noted.
Dominance of Recycling
China is home to over 80percent of the world’s battery recycling capability.
More EVs have been on the road for a longer period of time; therefore, China is where the first significant wave of scrap is anticipated to appear.
Over the past year, there have been numerous plans for new recycling facilities around Europe and North America, but such facilities will have to wait even longer for the supply to increase.