Trump’s second term is creating ‘a limbo moment’ for US battery recyclers
In a recycling facility located in Covington, Georgia, workers are transforming discarded batteries into a fine black powder known as “black mass.” Historically, this product was dispatched overseas for refining into valuable metals like cobalt and nickel. However, Ascend Elements, the Massachusetts-based owner of this facility, has revolutionized local production by processing black mass on-site to produce lithium carbonate—a critical material for electric vehicle (EV) batteries and energy storage systems. With the factory’s planned enhancements, it aims to generate up to 3,000 metric tons of lithium carbonate annually.
### An Emerging Domestic Lithium Source
Increasing demand for lithium from the clean energy sector has spurred mining initiatives across the United States—from Nevada to Arkansas. However, Ascend Elements stands out as North America’s only source of recycled lithium carbonate and the country’s first new lithium carbonate producer in several years. Currently, the only other American supplier is a small lithium mine in Silver Peak, Nevada.
### The Political Landscape and Recycling Industry’s Future
Since January, the political climate has shifted dramatically under President Trump’s administration, disrupting the Biden administration’s clean energy ambitions. The new administration has implemented significant cuts to grants, loans, and support for renewable energy initiatives. Yet, Trump has advocated for increased domestic production of critical minerals like lithium, a domain where the burgeoning battery recycling industry could be pivotal.
### Challenges Amidst Opportunity
Despite operating in a changing political landscape, U.S. battery recyclers are navigating a turbulent atmosphere characterized by fluctuating tariff policies and potential repeal of Biden-era tax credits. Beatrice Browning from Benchmark Mineral Intelligence described the situation as a “limbo moment,” where industry stakeholders are eager for clarity on future regulations.
### A Sustainable Approach to Energy Needs
The transition from fossil fuels necessitates an increase in large batteries for electric vehicles and renewable energy storage. Recycling end-of-life batteries—covering a range of devices including electric vehicles, e-bikes, and cell phones—can significantly contribute to meeting the escalating demand for battery metals while minimizing the need for environmentally harmful mining practices.
In China, where most lithium-ion battery manufacturing occurs, government policies foster an efficient recycling ecosystem that American counterparts aspire to replicate.
### Federal Support and Expansion Plans
During Biden’s administration, numerous initiatives were launched to bolster domestic battery recycling, resulting in substantial funding aimed at expanding operations. The Department of Energy awarded hundreds of millions of dollars to firms in the recycling sector. For instance, Ascend Elements received a $316 million grant to establish a second recycling plant in Kentucky, slated for completion in 2026.
Other firms, like American Battery Technology Company, have also secured significant support for expansion projects, ensuring continuity in their operations amid shifting political tides.
### Aligning with National Interests
The current U.S. administration views the control of critical minerals as essential for national security, particularly given their role in military technology. Industry leaders denote battery recyclers as vital contributors to creating a resilient and sustainable energy economy.
Ajay Kochhar, CEO of Li-Cycle, emphasized this during Trump’s executive orders focused on advancing American mineral production. Battery recyclers could play an instrumental role in securing domestic supply chains for these essential resources.
### Navigating Trade Policies
While battery recyclers generally align with the administration’s critical mineral strategy, they face challenges from ongoing trade tensions. The U.S. has engaged in significant trade conflicts with China, which has traditionally been the dominant force in battery materials. Recent export restrictions from China could further underline the necessity for domestic production capabilities.
Browning pointed out that while these trade dynamics may benefit U.S. mineral production, potential tariffs on imports from allies like South Korea pose a risk to revenue streams essential for industry growth.
### The Future of U.S. Battery Recycling
As battery recyclers adapt their strategies, they remain optimistic in the face of uncertainties. The current landscape, defined by both opportunities and risks, indicates a pivotal moment in the industry’s evolution. The U.S. needs substantial battery recycling capacity as more EVs reach the end of their operational life.
However, factors such as the potential rollback of key provisions from the Inflation Reduction Act and rising manufacturing costs could stifle growth. Clean energy projects worth $14 billion have already been abandoned or delayed since the onset of the new administration.
To mitigate risks, Ascend Elements is exploring buyers beyond the EV sector. While the battery industry currently represents nearly 90% of global lithium demand, lithium is also vital for industrial uses—creating a diversified approach to economic viability.
As they navigate these multifaceted dynamics, battery recyclers are positioning themselves as integral players in the sustainable transition to clean energy. By solidifying domestic supply chains and embracing innovative strategies, they are shaping the future of energy in America.
