Li-Cycle Partners with Unnamed Luxury EV Maker for Battery Scrap Recycling in Germany

Li-Cycle, a Toronto-based lithium-ion battery recycling firm, has entered an exclusive agreement to recycle manufacturing scrap from an undisclosed luxury electric vehicle (EV) manufacturer. Under the deal, Li-Cycle’s facility in Germany will process battery materials generated during the EV maker’s production operations within the country.

The agreement aims to secure a steady supply of recyclable feedstock for Li-Cycle’s German operations, which are part of the company’s global network of “Spoke” facilities that pre-process battery materials. Li-Cycle reported serving 13 EV manufacturers and 15 battery producers globally in 2024, with a major U.S.-based EV and battery company listed as its largest feedstock supplier during the year.

See also: U.S. Department of Energy Grants $475 Million Loan to Li-Cycle for New York Battery Recycling Plant

Ajay Kochhar, Li-Cycle’s CEO, framed the partnership as part of the company’s strategy to expand collaborations with automakers: “This exclusive recycling agreement secures a further quality supply of recycling feedstock for our Germany Spoke. This is also indicative of our position as a preferred recycling partner who can process lithium-ion battery materials sustainably and efficiently.”

The announcement comes as battery recyclers compete for contracts with EV manufacturers seeking to meet regulatory requirements for material recovery. Li-Cycle’s German facility uses hydrometallurgical processes to extract metals like lithium, nickel, and cobalt from battery scrap.

See also: Daimler Truck North America Partners with Li-Cycle for Lithium-Ion EV Battery Recycling

While the company emphasized the environmental benefits of its closed-loop recycling model, industry analysts note that profitability in battery recycling remains challenging due to fluctuating commodity prices and high operational costs. Li-Cycle has faced financial headwinds in recent years, including paused construction of its flagship U.S. hub in 2023 amid rising expenses.

The unnamed luxury EV manufacturer joins other automakers partnering with recyclers to address growing volumes of production scrap and end-of-life batteries. Regulatory pressures in the EU, including stricter recycling targets under the Battery Regulation, have intensified demand for such services.

See also: Li-Cycle Unveils First European Battery Recycling Plant in Magdeburg

Li-Cycle did not disclose financial terms of the agreement or the volume of material expected to be processed. The company’s shares have remained under pressure since 2023, reflecting broader investor skepticism about the near-term economics of large-scale battery recycling.

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