Major players expand investment in the battery industry

High-class recycling technology at H.C. Starck

A niche yet highly valuable market

Over the past decade, the battery industry has progressed to an extent that it has enabled a great many smart devices in modern life, ranging from portable consumer electronics, mobile phones, the internet to the first electric cars, and now intermittent renewable power storage and generation. Given the accelerating and expanding role stationary power storage will play in the fight against global warming, the battery industry will become one of the world’s most important industries over the next ten years. Total addressable market of battery is expected to reach over US$ 200 billion in 2026.

However, a significant rise in the demand for electric vehicles (EVs) and a lack of mined and refined battery metals, similar to the current chip shortage, would probably cause a severe but temporary global battery shortfall. In order to avoid this turning into a persistent problem, the industry is investing heavily in cutting back on the usage of limit     ed resources, developing new materials and battery technologies, and, most important of all, building up a scaled-up global battery recycling industry. Battery recycling is imperative to minimize environmental impact and prevent the depletion of finite natural resources. Many companies are realizing the value of battery recycling and its potential financial rewards.

Global players expand investment in batteries

In the next few years, the development of a circular battery economy will be a major industrial trend, contributing to the decarbonization of the mining sector and ensuring the long-term viability of the sector.

The increasing need for sustainable solutions for stationary energy storage creates opportunities for new battery technologies. In reality, electric vehicle technology is exploding, necessitating a ‘speed up’ in battery technology to keep up with that growth rate. Many manufacturers are currently in heated competition to develop the most advanced battery technology for the future, indicating bright prospects for this field.

H.C. Starck and the Center for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) have been jointly investigating the use of tungsten-based cathode coatings in lithium-ion batteries. 

In Asia, the Japanese giant Mitsubishi Materials Corporation and Nippon Magnetic Dressing Co., Ltd developed a recycling technology for cobalt, nickel and other metals contained in lithium-ion (Li-ion) batteries for electric vehicles (EVs), which have the potential for a massive increase in demand for recycling. The two companies promoted the technical validations of this facility targeted at commercialization and the joint development of improvement technology based on the results of the technical validations. In 2020, Mitsubishi Materials Corporation invested US$ 90 million to Masan High-Tech Materials – a Vietnam’s high-tech tungsten platform.

SK Innovation operating in many fields, from mining to battery manufacturing, under SK Group – South Korea's third largest company has been building battery manufacturing plants worth $2.6 billion in Georgia, which will be supplying batteries for the fully electric version of Ford’s legendary and best-selling F-150 pickup truck. With SK Innovation's two battery plants in Commerce, Georgia and three additional plants (to be built in Tennessee and Kentucky), the South Korean manufacturer will have a total production capacity of over 150 GWh of battery cells per year around 2025.

LG Energy Solution Ltd. – the South Korean battery maker has signed a 350 billion won (US$297.5 million) deal to acquire a 4.8 percent stake in China’s Greatpower Nickel & Cobalt Materials Co. for a stable supply of battery materials. This deal is part of its efforts to secure the key battery materials as it plans to ramp up production of high-nickel batteries with longer range and higher energy density. The firm also signed a six-year deal with Australian Mines Ltd. to receive 71,000 tons of nickel and 7,000 tons of cobalt starting in late 2024.

Scrap recycling process at H.C. Starck

Contemporary Amperex Technology Co. Ltd. – China-based battery manufacturer plans to build a battery material recycling facility in the central Chinese province of Hubei with an investment of up to $5 billion. CATL is currently the battery supplier of a swathe of automakers such as Tesla Inc and Volkswagen AG. At the same time, the battery powerhouse is working to expand its manufacturing processes outside of China for the first time. The battery maker received production approval to manufacture at a plant being constructed in Thuringia, Germany.

Notably, H.C. Starck Tungsten Powders, a wholly owned subsidiary of Masan High Tech Materials, has recently taken a major step forward in the adoption of tungsten-based coatings in the production and use of batteries. The Company and the Center for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) have been jointly investigating the use of tungsten-based cathode coatings in lithium-ion batteries. Positive results in the research process of H.C. Starck Tungsten Powders on batteries come amid increasingly strong demand for electric vehicles following the Covid-19 pandemic and global political turmoil.

In mid-July 2022, H.C. Starck has moved on to announce the signing of definitive agreements to invest £45m (approx. €52m) into Nyobolt Limited, a fast-charging Li-ion battery solutions company that leverages H.C. Starck’s advanced tungsten materials in its anode, for a 15% equity interest on a fully diluted basis.

Deputy CEO of Masan High-Tech Materials, CEO of H.C. Starck Hady Seyeda said “We see this collaboration as an important step in the evolution of elements such as tungsten in battery development and use. With the global EV push, making batteries safer and improving their performance is a critical element of wider adoption and application”.

This investment once again is testament to Masan High-Tech Materials’ persistence in pursuing its goal to become a global consumer business in near future. The company is now well-positioned to move further downstream, and get closer to consumers by developing new, innovative consumer products including the Company’s recently trademarked “starck2charge” battery materials product range.

Apparently, major players in the global technology sector are all making substantial investments in researching into how to optimize battery technology. Even now, the search for cutting-edge battery solutions is a vigorous "race", in which the global companies are working toward a circular economy that promotes sustainable economic growth while also protecting the environment.