US DOE invests $62 mil in battery supply chain to boost battery recycling

The US DOE announced March 28 a $62 million investment in domestic battery recycling, aiming to meet growing demand for battery recycling as EVs continue to take up a larger portion of vehicle sales.

This new investment in battery recycling, reprocessing and collection projects is an "essential part" of the Biden administration's signature $1 trillion infrastructure legislation, the release states. The infrastructure law has $7 billion slated for the domestic battery supply chain.

"Capturing the full battery supply chain—from sourcing critical materials to manufacturing to recycling—puts the U.S. in the driver's seat as we build our clean energy economy," US Secretary of Energy Jennifer Granholm said in a March 28 DOE statement. "With the historic support in President Biden's Investing in America agenda, we are creating a sustainable, circular supply chain that lowers costs for consumers and boosts our manufacturing global competitive edge."

The 17 projects announced for funding include:

• $40.1 million for seven projects working to improve market demand for consumer batteries recycling through approaches including artificial intelligence and automated sorting
• $14.4 million for four projects in student education and outreach, such as e-waste collection events, to expand participation in consumer electronics recycling
• $7.2 million for six projects establishing battery collection programs, including drop-off and storage facilities

Growing EV sales

Under the Biden administration, EV sales "have quadrupled," according to the DOE statement.

"With demand for electric vehicles (EVs) and stationary energy storage projected to expand the lithium battery market as much as ten-fold by 2030, investments in sustainable, reduced-cost recycling of consumer batteries are critical to securing the domestic materials supply chain to meet that demand," the statement reads.

Industry members have said some aspects of necessary EV infrastructure lags behind sales growth, including electric grids and lithium production for batteries, an S&P Global analysis shows.

The EV market share of total light-duty vehicle sales has grown significantly in recent years, S&P Global data shows. Plug-in electric vehicle sales had an average monthly market share of 9% in 2023, up from 7% in 2022, according to the latest S&P Global EV Essentials report released Feb. 29.

PEV sales increased by 57% year on year, and similar growth is expected in 2024, S&P Global data shows.

Processed and refined lithium imports dropped 2.4% and 20.5% year on year, respectively, in 2023, S&P Global data shows. Global lithium supply could peak in 2024, forming a demand deficit by the end of the decade, the data shows.

The US DOE recently announced a $2.6 billion investment in domestic lithium production. The resulting facility is expected to produce 40,000 mt of battery-grade lithium annually, according to a March 14 DOE announcement.