Following Inflation Reduction Act, battery recycling race intensifies

By Ayushi Garg  | Date: 2022-09-19

Following Inflation Reduction Act, battery recycling race intensifies

The worlds largest automakers are banking on recycled material from old batteries to help supply the metal required to create electric vehicles. Notably, the latest bet is reportedly placed on a startup that claims to be able to capitalize on the Inflation Reduction Act.

South Korean conglomerate SK Group, Jaguar Land Rover Automotive plc, and Fifth Wall, a venture capitalist with an emphasis on sustainable energy, are among the investors who have poured over USD 300 million into Ascend Elements, a business that intends to serve an expanding battery production center in the Southeastern United States.

Moreover, the company claims to have developed an efficient method for converting used lithium-ion batteries into fresh components.

Additionally, the funding, which is a combination of equity and debt, values Ascend Elements at over USD 500 million.

The Westborough-based company along with other startups such as Redwood Materials Inc. and Li-Cycle Holdings Corp. have stated that they will invest billions of dollars to supply battery manufacturers with the necessary components.

Interestingly, recycling startups often break down old batteries or manufacture scrap material, and later employ chemical methods to create components that can be used in new batteries.

Recycling companies are competing for major customers that require larger quantities of these materials to satisfy their electric-vehicle aspirations. Besides, car manufacturers are attempting to reduce their dependency on China, which is currently dominating the battery supply chain.

Further, investors are pumping billions into recycling business domain as all new mining and processing plants in the United States encounter municipal opposition due to environmental concerns. This often hinders progress and turns out that projects can take a decade or more to start functioning.

The Inflation Reduction Act boosted the sectors pace by connecting consumer tax credits for electric vehicles to how much battery material originates from domestic manufacturing and recycling or from U.S. trading partners.

It is worth mentioning that with the help of the Energy Department's loans and the government's infrastructure bill from the previous year, billions of dollars have been made accessible to battery businesses.

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Ayushi Garg

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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