A second life for EV batteries

In 2030, the International Energy Agency predicts there will be over 300 million electric vehicles on the road. In spite of this, the American EV market is relatively small. It is estimated that the U.S. will account for less than 10% of the global EV registrations in the year 2021, while China and Europe will account for 50% and 35%, respectively. Over 70 percent of the global EV battery production capacity is also produced in China, meaning that the U.S. relies heavily on imports of batteries and battery minerals in order to meet its energy needs. 

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The Chinese government has been making it clear since 2014 that they have the plan to lock up the biggest share of the world's supply of battery minerals," said John Voelcker, an EV analyst. "China is now home to the world's largest battery company."

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National Renewable Energy Laboratory estimates that by 2050, the demand for graphite, lithium, and cobalt, which are all crucial minerals for electric vehicle batteries, will increase by 500% compared to today. EV batteries are estimated to have a lifespan of 12 to 15 years in moderately climatic environments, depending on the type of battery. 

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"Among the most challenging questions facing the industry is how the battery pack degradation of an electric vehicle affects the performance of the vehicle," said Lea Malloy, head of Cox Automotive Mobility's suite of battery solutions for electric vehicles. "The life cycle of every battery will eventually come to an end. This is why we believe that it is important to recycle end-of-life packs so that they will not end up in places they are not supposed to."

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With the estimated lifetime of an EV battery ranging anywhere from five to thirty years, extending the life cycle of the battery has the possibility of reducing the demand for mineral resources that are critical to the production of batteries. The Oklahoma-based company Spiers New Technologies, also known as SNT, has pioneered a new process of recycling lithium-ion batteries that is different from processes developed by companies such as American Battery Technology. 

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“For me, it's cool to be able to drive an electric car, knowing that at the end of its life, the components of that battery pack will be reused as part of a new battery pack and a new electric car, which we're very excited about.” Dirk Spiers, founder, and CEO of SNT Automotive said.

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The company was founded in 2014 with just two employees at the time. During the first half of 2021, Cox Automotive, a subsidiary of Atlanta-based Cox Enterprises, acquired the company. There are now more than 400 employees working at the company and it offers what is called a "one-stop solution" for the disposal of used or faulty EV batteries.

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Spiers explained that they are like a diner when it comes to battery services. "We serve all kinds of food, right from steaks to soups to apple pie and we even have a place where you can come for a cup of coffee. We are proud to serve all of these things to our customers."

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Batteries for electric vehicles are delivered directly to the company by the dealership or original equipment manufacturer. It is then that the battery packs are put through its diagnosis system, which is called Alfred. In order to determine if the battery pack can eventually be used in a vehicle, Alfred assesses the health of the battery pack. It is possible to repair a battery pack to operational conditions, remanufacture it to original factory standards, refurbish it and upgrade it to current factory standards, or remanufacture it to a new standard. In the event that the product is truly at its end of life, SNT will recycle it. 

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"There was a time a couple of years ago when recycling lithium-ion battery packs was associated with higher costs than it is today. The situation is now a positive one," he said. "There is a high chance that I will give you money back if you give me a lithium-ion battery pack. This is the beauty of it, and that's what makes it so special. It is more valuable to recycle a battery pack whose intrinsic value is higher than the cost of recycling it.”

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There are facilities in Oklahoma City, Las Vegas, Detroit, and the Netherlands in addition to SNT's headquarters in Oklahoma City, with plans to expand to the east coast and to the U.K. At the moment, SNT believes that its business model can only be successful if it is centrally located in the U.S.

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"Being situated right in the middle of the country makes it easier for us to reach out to our customers. It will take us between two and three days to reach either location," Spiers said. 

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While the company wouldn't divulge the exact number of battery packs that it is capable of storing, it said that on average it handles 15 thousand battery packs and modules per month.

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"I would say that we get anywhere from 50 to 100 battery packs a day. There is a good chance that 80 to 90 percent of them can be refurbished. The recycling rate is probably between 5 and 10%. The rest is repurposing, a second life for the product. However, these numbers will fluctuate over time," he explained.

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SNT says that since its inception, it has serviced more than 240 thousand packs, of which more than 50 thousand have been repaired, refurbished, or remanufactured. 

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"If you take Tesla out of the equation when it comes to the EV market, we probably have 60, 65, 70% of that market," Spiers stated. "GM, Ford, Stellantis, Porsche, Volkswagen, Nissan, Toyota, and Volvo are just a few of the names we keep adding to the list."

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Why doesn't it work with Tesla, the most recognizable company in the field of electric vehicles in the US? 

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"It is their nature to do things on their own. I think they're a little bit like Apple in that sense," he said.

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Malloy pointed out that when he looks at the future of EV battery recycling specifically, he sees it as an increasingly competitive market. "Nevertheless, there is a bit of a mismatch with regards to the supply and capacity of EV battery recycling, since there is maybe more supply and capacity than there is demand. Currently, we are just riding the first wave of electric vehicles on the road that could be there for ten or more years to come."

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There is a finite amount of minerals in the world that are required for EV batteries, so could it be possible for this technology to reach an indefinite level of cycling and reuse in the future? 

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"I believe that we will continue to mine metals for the remainder of the time that I am alive," said Voelcker. "With luck, with the development of more powerful, smaller, lighter, and cheaper batteries, we will be able to use fewer metals in the future."

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"Why would you want to order cobalt or lithium from Africa or South America, when you could get them here in Oklahoma City?" Spiers asked. "There is a circular economy that is taking place today. Right now, this is happening. This is happening here in Oklahoma City...the volume is still small, but it is likely to grow as time goes on."