Where will all of the electric vehicle (EV) batteries go when they die? Fortunately, most won’t end up in landfills. Instead, according to Car and Driver, they’re often sent to firms that break down the battery packs into their different materials. That includes wires, plastics, and circuitry, for example. The cells are also crushed to separate the metals used, as well. That includes lithium and nickel, for example.
Considering the world could see nearly 300 million EVs on the roads by 2030, eventually, millions of batteries will be in need of recycling. That alone could create substantial opportunities for these seven battery recycling stocks/
Li-Cycle Holdings (LICY)
Li-Cycle Holdings (NYSE:LICY) is one of the top lithium-ion battery (LIB) recyclers in North America. It also just announced the start of its first main processing line in Germany, with a second line expected later this year.
According to the company, “Each main line has the capacity to process up to 10,000 tonnes of lithium-ion battery material per year. With an additional 10,000 tonnes of ancillary capacity planned, the facility is expected to have a total capacity of 30,000 tonnes per year, making the Germany Spoke the largest Spoke in Li-Cycle’s current portfolio and one of the largest facilities of its kind on the continent.”
In addition, the U.S. Department of Energy (DOE) announced a conditional commitment to Li-Cycle for a $375 million loan to the company. All in an effort to help finance the construction of its LIB resource recovery facility in North America, as noted by Energy.gov.
Umicore (OTCMKTS:UMICY) has battery recycling facilities in the U.S., China, Belgium, and Germany.
It provides catalysts for gasoline and diesel applications, plating and film materials, and recycling services that provide exposure to the burgeoning EV opportunity. In addition, I believe it’s reasonable to expect Umicore to invest heavily in its recycling operations moving forward.
The battery investment could go a long way toward improving declining margins at the firm. I’d expect Umicore to lean into the battery opportunity given the growth from that business and Umicore’s flatness overall.
RecycLiCo Battery Materials (AMYZF)
RecycLiCo Battery Materials (OTCMKTS:AMYZF) is attempting to establish itself as a player in the battery recycling stock sector. The company was formerly known as American Manganese and changed direction late last year. RecycLiCo Battery Materials shares trade for $0.25. They’re clearly risky.
I do like that the company intends to take cathode scrap and turn it into a black mass. From here, it’ll ultimately produce battery precursors. There’s a lot of potential in doing so. However, we don’t know much else about it beyond that. Its demonstration plant became operational in late 2022. It also received product validation from a battery materials company in April.
Ganfeng Lithium (GNENY)
Ganfeng Lithium (OTCMKTS:GNENY) is one of the largest lithium producers in the world and the largest in China. Its operations span throughout Africa, Australia, Argentina, Ireland, and Mexico giving it a vast, diversified network overall. It’s a network that also includes battery recycling and a recycling project underway in Jiangxi province. The company has been strategizing to take advantage of the opportunity for several years.
American Battery Technology (ABML)
American Battery Technology (OTCMKTS:ABML) is involved with lithium-ion battery recycling and has pioneered closed-loop battery recycling, according to the company’s site. That process allows the company to separate, recover, and purify the critical materials from end-of-life batteries.
“ABTC’s lithium-ion battery recycling plant is located at the Tahoe Reno Industrial Center (TRIC) in Nevada. The 137,000 square foot recycling plant is designed to function with high yields and low emissions and will have the capacity to process an initial production scale of 20,000 MT of battery feedstock material per year,” as also noted on the company’s site.
Apple (NASDAQ:AAPL) will also use recyclable battery components. It just announced it will include a new 2025 target to use 100% recycled cobalt in all Apple batteries. Also, by 2025, the magnets found in Apple devices will be made of recycled rare earth elements. Plus, Apple-designed printed circuit boards will use 100% recycled tin soldering and 100% recycled gold plating, as noted by Apple.com.
In addition, “Apple has significantly expanded the use of 100 percent certified recycled cobalt over the past three years, making it possible to include in all Apple-designed batteries by 2025. In 2022, a quarter of all cobalt found in Apple products came from recycled material, up from 13 percent the previous year.”
BYD (OTCMKTS:BYDDF) began transforming old batteries into energy storage systems in partnership with Itochu in 2020, according to Nikkei Asia. “The effort comes as discarded EV batteries are forecast to mount over the coming years in China, which accounts for about half of global sales of electric vehicles,” the company noted at the time. “BYD will collect spent EV batteries from dealerships across China, drawing from buses, taxis, and other vehicles manufactured by the automaker, and deliver them to Shenzhen startup Pandpower for performance tests. Itochu will buy the batteries that pass the screening phase for use in large power storage units.”
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.