TOKYO — JERA, Japan’s largest fossil fuel power producer, is developing a new technology to extract valuable metals from used electric vehicle (EV) batteries with a target of achieving a 90% recovery rate. This initiative seeks to keep more critical resources like lithium, cobalt, and nickel within Japan, enhancing the country’s economic security. With about 80% of Japan’s used EVs currently exported, the new recycling approach could help retain these essential materials domestically. The global demand for EV battery metals is on the rise, and countries such as the U.S., European Union, and China are also taking steps to secure their own supply chains.
Traditional recycling methods that use heat-based techniques have typically achieved only a 60% recovery rate. However, JERA’s new approach uses a non-heat-based method, applying high voltage to create a shock wave that frees recoverable metals from the materials. This method is expected to reduce carbon dioxide emissions by half compared to conventional processes. JERA plans to establish a recycling facility in Japan by the early 2030s. If successful, this technology could also meet the stringent battery recycling regulations set by the European Union, providing potential international market opportunities.
Japan is forecasted to see a significant increase in discarded EV batteries by 2030, reaching the equivalent of batteries from 150,000 vehicles. As demand for batteries continues to grow, ensuring the availability of key metals is crucial. Current estimates suggest that Japan will need around 100,000 tonnes of lithium and 20,000 tonnes of cobalt by 2030. Other Japanese companies are also investing in battery recycling. Sumitomo Metal Mining plans to open two recovery plants in 2026, while JX Advanced Metals aims to extract 30,000 tonnes of battery metals annually by 2035 using a newly developed heat processing technique with a 90% recovery rate.
The Japan Research Institute projects that the domestic market for battery reuse and recycling could reach 2.4 trillion yen ($16.1 billion) by 2050, highlighting the potential economic impact of expanding recycling capacity.
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