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Virgin lithium mining is a focal point for the U.S. and is necessary for the nation’s growth in the critical minerals market. Yet, there is another primary source to secure key battery materials (lithium, nickel, cobalt, and manganese), and that is recycling end-of-life and scrap batteries. Domestic sourcing is crucial to expanding our manufacturing efforts, and it’s imperative that recycling and mining complement one another if we want to succeed in our supply chain stabilization efforts.
Currently, the U.S. produces black mass (the output recycling lithium-ion batteries metals that can be put back into the supply chain). We will have a large supply of this material in the next few years that will be readily available to the domestic market. What’s also important is that we’ll have increased refining capacity to extract critical materials contained in the domestically available black mass to enable cathode producers to manufacture cathode powder for cell manufacturers.
The global critical minerals industry is on a growth trajectory, and there is a tremendous opportunity to recover these metals within our borders and reuse them to produce new materials including energy storage systems, technological advancements, consumer products, and defense applications. Now is the time to strengthen the U.S.’s critical materials strategy and global competitiveness with a focus on key factors:
Accelerating access to domestically sourced critical minerals
Becoming a leading critical minerals producer
Committing to increased raw battery material manufacturing in the U.S.
Global impact
Battery recycling refinement industry challenges are similar to other growth industries, with a lot of new entrants not fully understanding the investments needed for market success. The key is experience and understanding this complex web of interconnectedness that streamlines the workflow to offer useable domestic material. Other factors such as inflated material acquisition costs will need to be reset much lower for the industry to succeed. And with today’s metal prices on the London Metal Exchange, expectations should focus on a return on invested capital to produce these critical minerals.
Enabling domestic sourcing that prioritizes onshore capabilities in the critical materials space, with a specific focus on refinement, is the path to stability. Once these materials are within our border, we need to keep them here. We can achieve this through a closed-loop system. When consumers and original equipment manufacturers have a battery at end-of-life or scrap, they should coordinate with a certified recycler to safely transport, sort, disassemble, process, and extract critical materials into battery-grade salts to be put back into domestic supply chains. By activating this proven model at a larger scale, we can increase access and capacity domestically, however it has to be profitable.
Becoming a critical minerals production leader would enhance the new administration’s commitment to U.S. manufacturing, national security, global competitiveness, and strengthening our supply chains.
Onshore manufacturing
To ensure there is sustainable investment throughout the critical minerals supply chain, the entire supply chain needs a profitable business model that can deliver a return on the required investment. Also, the U.S. can be a leading critical minerals producer and powerhouse by onshoring manufacturing to further the national defense stockpile sources, reducing the nation’s mineral reliance on foreign entities of concern and supporting the priority of accelerated access to domestically sourced critical minerals.
By recycling and recovering these materials, we can start to enhance our supply chains in the short term, ultimately working towards ensuring that the U.S. secures critical materials for long-term viability.
David Klanecky is CEO and president of Cirba Solutions.
