Eramet suspends intentions for establishing a facility focused on reprocessing electric vehicle battery waste.
In France, the project for a battery recycling plant for electric vehicles (EVs) has been temporarily paused due to tough market conditions. As of now, it seems that there might not be enough battery manufacturing facilities in Europe to justify the investments, stated French mining company Eramet last Thursday. Given the lacking demand in Europe, the mined materials from the facility would likely need to be shipped to Asia, which wouldn't be financially feasible.
Critical minerals such as nickel, lithium, and cobalt are crucial components of EV batteries, which can also be sourced from used batteries. However, recycling these batteries is costly and intricate. Initially, Eramet aimed to construct a facility to retrieve these minerals from a substance called "black mass," a result of the battery-conversion process.
However, the demand for EVs has experienced a downturn, prompting battery manufacturers to reconsider their growth strategies. Eramet is now aligning with this trend. Similar initiatives in France were also suspended last month, when automaker Stellantis and mining conglomerate Orano decided to postpone their battery recycling plant plans temporarily.
Despite the paused battery recycling plant project, there's a growing need for electrical batteries for cars, particularly due to the increasing focus on electric vehicle (EV) adoption worldwide. However, the high cost and complexity of recycling these batteries pose challenges, including the potential need to ship salvaged materials to more profitable markets in Asia.
