Battery recycling provider Cirba Solutions and South Korean battery material manufacturer Ecopro have entered into a collaboration aimed at creating a closed-loop battery materials supply chain. Under the agreement, Cirba Solutions will supply recycled raw materials, obtained from dismantled lithium-ion batteries, to Ecopro, which will utilize these materials to produce precursor cathode active material (PCAM) and cathode active material (CAM) for new batteries.
While the letter of intent has been signed, specific quantities and the commencement of deliveries are yet to be disclosed, with further negotiations expected to finalize these details.
Cirba Solutions, known for its battery collection, dismantling, and recycling operations, has existing agreements with major players like Toyota and General Motors. The company is currently investing $300 million in a recycling plant in South Carolina, set to commence operations by the end of 2024.
Ecopro, a battery materials manufacturer, recently secured a substantial order valued at around €30.9 billion for its NCA cathode active materials from Samsung SDI. The company aims to produce 710,000 tons of cathodes by 2027, with a portion produced in South Korea and additional manufacturing plants underway in Hungary and Canada through partnerships with SK On and Ford.
While the new collaboration emphasizes the benefits of Cirba Solutions' extensive logistics and collection networks for used batteries, as well as its diversified processing capabilities, Ecopro highlights the importance of a closed-loop battery materials supply chain in North America, supported by the US Inflation Reduction Act.
Hoirim Jung, Business Strategy Office Leader at EcoPro, expressed that Cirba's experience in the market for premium recycled materials aligns with their vision of growth into a closed-loop battery materials supply chain in North America.
Jay Wago, Chief Commercial Officer at Cirba Solutions, emphasized the significance of recycling in the value chain for creating a robust and circular economy for electric vehicle batteries. The collaboration with Ecopro is expected to contribute to the expansion of an interconnected battery supply chain, supporting the overall sustainability goals in the sector.