Guidehouse Insights Explores Solutions for Recycling End-of-Life EV Batteries

News provided by

Jul 06, 2023, 05:15 ET

Recycling batteries will become essential for meeting domestic demand, accommodating federally mandated sourcing requirements, and reducing reliance on other countries

BOULDER, Colo., July 6, 2023 /PRNewswire/ -- A new report from Guidehouse Insights explores the development of solutions for recycling end-of-life EV batteries.

While the automotive industry grappled with supply-chain disruptions in 2022, production and sales of battery EVs (BEVs) surged in all major markets globally. This surge coincided with substantial increases in prices for minerals critical to producing batteries, which led to price increases for both BEVs and plug-in hybrid EVs (PHEVs), collectively referred to as plug-in EVs (PEVs). According to Guidehouse Insights, plug-in EV (PEV) sales, which reached 10.4 million in 2022 worldwide, are projected to accelerate to 57 million vehicles by 2030, a global market share of 47% of all vehicles. An increasing number of PEV batteries will eventually reach the end of their useful life and require an alternative solution to being discarded into landfills, which violates environmental goals, policies, and regulations. The latest report by Guidehouse Insights focuses on recycling as a viable solution for end-of-life PEV batteries.

"Recycling is environmentally sustainable, and it meets broad government and industry strategic goals of mitigating international supply chain and geo-political risks by decreasing reliance on material extraction and refinement dominated by a handful of countries," says Adam Winston, research analyst with Guidehouse Insights. "For companies with established sustainability goals, sourcing battery materials globally generates additional emissions by transporting raw and refined materials, so localizing production will be key to meeting sustainability goals."

Guidehouse Insights expects North American (e.g. U.S. & Canada) light duty (e.g. cars, SUVs, and light trucks) PEV sales to reach 6.6 million units by 2030 (32.6% of all vehicles) — PEV battery recycling is viewed as a strategic solution to keep these materials in a closed-loop supply chain in which 95% to 98% of key battery materials are recoverable and can be directed into new battery production. Recycling batteries will become essential for meeting demand, accommodating federally mandated sourcing requirements, and reducing reliance on countries that dominate the raw materials and refinement market. To meet demand, federal mandates, and counter concentrated market dominance, the PEV battery must become part of a circular economy with localized recycling playing a key role, according to the report.

The report, Developing Solutions for Recycling End-of-Life EV Batteries, presents analyses for future PEV sales, PEV battery production, and the potential volume of PEV batteries available for recycling. It includes an overview of potential business models for establishing a PEV battery recycling market and identifies key incentives and regulations that could ensure the safe removal, discharge, handling, and transportation of end-of-life PEV batteries to recycling facilities. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Developing Solutions for Recycling End-of-Life EV Batteries, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights