Battery Recycling Race Heats Up After Inflation Reduction Act
The world’s biggest auto makers are betting that recycled material from old batteries will help supply the metal they need to build electric cars. The latest wager is on a startup that says it can take advantage of the Inflation Reduction Act.
The recyclers are jockeying for large customers that need more of those materials to meet their electric-vehicle goals. Car makers are trying to limit their dependence on China, which dominates the battery supply chain.
Investors are pouring money into recycling in part because nearly all new mines and processing facilities in the U.S. face local opposition due to worries about environmental damage. That typically stalls progress and means it takes up to a decade or more to get projects up and running.
The Inflation Reduction Act added to the momentum in the sector by tying electric-car tax credits for consumers to how much battery material comes from domestic production and recycling or from U.S. trade partners.
The recyclers are jockeying for large customers that need more of those materials to meet their electric-vehicle goals. Car makers are trying to limit their dependence on China, which dominates the battery supply chain.
Investors are pouring money into recycling in part because nearly all new mines and processing facilities in the U.S. face local opposition due to worries about environmental damage. That typically stalls progress and means it takes up to a decade or more to get projects up and running.
The Inflation Reduction Act added to the momentum in the sector by tying electric-car tax credits for consumers to how much battery material comes from domestic production and recycling or from U.S. trade partners.
