Critical Minerals Strategy 2023: discussion paper

Australia’s Critical Minerals Strategy: Discussion paper

This is the Australian Battery Recycling Initiative’s (ABRI) submission to the Critical Minerals
Strategy; Discussion Paper highlighting the:

• importance of building the Australian battery recycling industry into a major
feedstock supplier of critical minerals for clean energy technologies; and

• opportunities for building on growing linkages and collaboration between the mining,
renewable energy and battery recycling sectors.
Key points:

1. Battery recycling uses similar processes for the recovery of the same minerals as
mining and processing raw materials. Mining companies moving into the battery
recycling sector highlights that industry already sees commonalities and business
opportunities. Australia’s unique mining and metallurgical position means that there is
potential for Australia to lead innovation in battery recycling, particularly given that
globally – the refining step of battery recycling is still largely at the R&D stage and
technologies are evolving. ABRI and its members are working across nine Australian
universities to research, improve processes and/or develop patents in this area which
will provide a valuable high quality alternate source to virgin mined materials.

2. Battery recycling has both environmental & social benefits through reuse of materials
rather than extraction of virgin materials. Advancing battery recycling capabilities
within Australia’s Critical Minerals Strategy effectively reduces the carbon footprint
associated with critical mineral sourcing. Materials produced from recycled batteries
have 38% lower greenhouse emissions than virgin materials.1 Battery recycling
sustainability credentials will strengthen as ongoing research improves pyro and hydro
metallurgy processes and looks to directly recover battery cathodes for reuse.
Recovering virgin materials from waste batteries also reduces the potential of “social
issues” that are associated with mining of commodities such as cobalt in regions
where human rights are a secondary concern.

3. Mining companies will need to manage end of life batteries from onsite energy
storage, electrifying mining fleets and other equipment. The mining sector and METS
companies are already approaching ABRI to look for solutions to managing the reuse
and recycling of batteries. There is an opportunity to accelerate the development of
localised solutions to turn end of life batteries into feedstock for new products. This
could also have significant benefits for regional and First Nation communities who
could use these decentralized recycling and reuse facilities to safely access
repurposed batteries and dispose of used batteries with reduced transportation costs.

4. Feedstock from recycled, reused and repurposed batteries is already part of the
supply chain for R&D in Australian made batteries and other materials such as green
steel and cement.

1
https://www.sciencedirect.com/science/article/pii/S0921344921001956?via%3Dihub
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5. The Australian Defence Force has commenced the adoption of Electric Vehicles.
Battery recycling will advance Australia’s capabilities of retaining critical minerals
(including cobalt, lithium, graphite & nickel) if the growing defence requirement for
electric vehicles leads to additional Australian battery manufacturing. Importantly
recycling can assist in “sovereign stockpiling” of critical materials – if required.

6. Internationally, a number of countries are recognising the importance of supporting
domestic battery recycling to ensure sovereign energy security. This includes the US
through the Inflation Reduction Act and the UK Critical Minerals Strategy. Private
sector investment in battery recycling is only being supported on an ad hoc basis

Australia’s battery recycling industry capability and investment is growing rapidly as batteries are an essential part of the clean energy transition. As the CSIRO has identified, the opportunities for lithium-ion battery recycling are enormous with the industry value projected to be $3.1 billion. Growth in ABRI membership over the past twelve months, reflects domestic and international investor interest in expanding the Australian battery recycling industry. ABRI now has nine members from operational to various stages in developing lithium battery recycling projects.

To support the battery recycling industry, the Critical Minerals Strategy should consider:
• Grant funding to support R&D and commercialisation of locally developed battery
recycling technology including for emerging battery technologies;
• Building on existing mining and battery recycling sector linkages to develop solutions
to challenges in regional and remote areas for battery recycling. This should also look
at building capability and bringing economic benefits to regional and First Nations
communities;
• Strengthening requirements to develop hazardous lithium battery waste onshore
under Australia’s Basel commitments;
• Providing incentives for retaining black mass in Australia to underpin value adding
and battery chemistry manufacturing in Australia. Black mass is the powder
containing a mix of critical minerals, that is an output of early stage lithium battery
recycling; and
• How Australia can play a collaborative role in facilitating battery recycling across
New Zealand and the South Pacific.

By way of background, ABRI is the peak body representing over 50 companies across the battery value chain focusing on a battery circular economy and recycling. The move to a circular economy means that ABRI has expertise across the battery life cycle and for all battery types. ABRI’s membership covers the entire battery supply chain.

All lead acid battery recyclers are members of ABRI, bringing a wealth of experience from this long-established industry. ABRI members also include nine lithium battery recyclers and two alkaline/zinc carbon battery recyclers. These companies have a diverse range of business models and range from well-established to start-up businesses.

If you would like to discuss how ABRI could assist, please contact Katharine Hole via email secretariat@batteryrecycling.org.au.

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Additional information to support Q23 - What are the opportunities for Australia in increasing
recycling and circular economy practices in the minerals sector?

Battery recycling and critical minerals (mining) applications equally support the development of feedstock into clean energy technologies: Recognising the commonality between battery recycling and raw materials minerals extraction and processing, many mining companies are vertically integrating battery recycling into their operations. They are bringing their metallurgical experience to the recovery of minerals from batteries to create high grade mineral materials and chemical inputs for battery materials and other manufactured products. ABRI has three members with mining linkages developing processes to combine feedstock from used batteries and raw materials into advanced manufacturing processes, including chemical manufacturing for batteries. There are numerous examples of this approach globally.

The diagram below illustrates how materials from recycled batteries and mining are part of the same feedstock processes to supply battery manufacturing.

Battery value chain – battery recycling is a feedstock to critical technologies such as electric
battery manufacturing

The growing vertical integration between the battery recycling sector and transport and automotive businesses or Australian renewable energy investors, highlights the importance of securing critical minerals feedstock for new products. ABRI’s observations of market trends shows direct commercial linkages are increasing between battery recycling and
OEMs/investors in the transport, automotive and renewable energy sectors. Examples include:

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o A grid scale, renewable energy investor in NSW’s New England region is establishing
battery recycling capability to ensure end of life solutions for its business. This includes
working with local councils to understand joint opportunities to manage battery
waste.
o Growing requests for ABRI to facilitate introductions between recyclers and OEMs
from battery manufacturers through to product manufacturers, such as car
companies and electronic consumer products.
o Australian proprietary battery recycling technology being used by OEMs, including
car companies, to set up their own battery recycling projects in other countries.

The importance of using recycled materials in critical technologies is also being reflected by a growing number of regulatory requirements for recycled content in batteries. Some of the largest consumer markets globally, European Union and India, have or are implementing minimum requirements for recycled content.

Materials produced from recycled batteries have 38% lower greenhouse emissions than virgin materials:2 Using minerals reclaimed from recycled batteries has environmental benefits compared with mining raw materials. Battery recycling companies and at least nine
Australian universities are working on processes to improve the sustainability of battery recycling. There are broadly two areas of focus: reducing the need for heat, that is reducing energy needs; and exploration of low environmental impact hydrometallurgy processes.

2
https://www.sciencedirect.com/science/article/pii/S0921344921001956?via%3Dihub
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