Lithium-ion battery recycling, a lucrative business: many new players are jumping into the pool – An interview with Anhua Taisen Recycling Technology

The Lithium-ion battery market is growing exponentially. The increased demand for Li-ion batteries has highlighted potential problems in the raw material supply chain (e.g. cobalt, lithium…) needed for their manufacture. Battery recycling can reduce one of these problems as battery recycling can supply a significant fraction of these materials.

Li-ion battery recycling is a dynamic industry. With the rapid adoption of electric vehicles (EVs), the demand for Li-ion batteries as well as Li-ion battery recycling will grow significantly in the coming decades.  The value of raw materials present in Li-ion batteries going for recycling is around $315 million, and will reach $1,137 million by 2025 and $23,812 million by 2040.

In a new report, Lithium-ion Battery Recycling Market & Technology Trends 2020, Yole Développement’s (Yole) analysts analyze Li-ion battery recycling technology and market trends as well as second life application trends.

Jayden Goh, CEO of Anhua Taisen Recycling Technology Co. Ltd. and EcoNiLi Battery, talked with Shalu Agarwal, Technology & Market Analyst, Power Electronics & Batteries at Yole Développement. Read their discussion below to understand what the issues and opportunities are for a Li-ion battery recycler in this challenging industry.

Jayden Goh (JG): I have been working for seven years as the CEO at Taisen Recycling, a company in China. Before starting at Taisen I was the CEO of 2 commercial B2B and retail operations. At the moment, I’m also the President and CEO at EcoNiLi Battery, Inc. 
We have formed a group of companies in Asia and China to provide full recycling services for all sorts of used lithium-ion batteries, NiCd, NiMH, and the recovery of battery raw materials from scrap lithium-ion batteries and shredded lithium-ion batteries. This includes black powder and cathode/electrodes foils extracted from the lithium-ion battery cells.
Our group is currently composed of the Preference Group from Malaysia, Anhua Taisen Recycling Technology from China, Joogshin Ind. Co. Ltd from South Korea, and EcoNiLi Battery, Inc operating in Indonesia, Malaysia, and is expanding throughout Asia and Europe. 

GH: Recycling itself is not difficult. However, the approval and necessary permits take time in each separate country. Regulations differ in most countries. 

GA: Of course, because mining creates an increased carbon footprint. Hence, recycling is the main alternative for materials in the supply chain and the value involved is big.

GA: Those days people focus on portable battery recycling. Momentum is booming in the EV market, so more batteries are out there. So the recycler gains more tonnage through input of scrap batteries. 

GA: To set up a battery recycling business the main concern is regular supply of scrap battery feedstock, else the plant can’t make a profit.

GA: With ever more lithium-ion battery makers, there is more plant scrap around. The main challenge is how to concentrate the scrap batteries as raw material for the recycler.

GA: It will increase, because reuse has more value than recycling. People want cost efficiency, so reuse is the solution for many products out there, like ESS and solar batteries.

GA: Many OEMs do not allow battery reuse as this will affect their business. They sell new batteries. We sell the second-use battery. What will happen to them if the market chooses the second-hand battery instead of a new battery?

GA: EcoNiLi Battery, Inc. has emerged with a solution to overcome the logistical problems of exporting scrap batteries to China. Now Ahua Taisen Recycling has expanded its facilities overseas through partnerships to be closer to the upstream out of China.

GA: In my point of view, the battery recycling business is lucrative. That is why many new players are jumping into the lithium-ion battery recycling pool. For new lithium-ion battery recyclers, the main challenge is to secure a source of feedstock. Owning the best technology won’t guarantee you success because in this field the main key  is the resource and supply of used batteries. In other words, the main challenge is to concentrate those used batteries in a cost-effective method. It is a matter of deciding the size of investment. The landscape in China is too competitive so there is not enough business for every battery recycler there. However, this industry is an emerging market, especially in the USA, EU, UK, because of the number of lithium-ion battery makers.

GA: This is a once-in-a-generation opportunity to remodel lithium battery waste management, reduce pressure on our environment and create economic opportunity.

Mr. Jayden Goh has seven year’s experience as the CEO of the Taisen Recycling company in China as well as the background as the CEO of 2 commercial B2B and retail operations. He demonstrates managerial and leadership qualities through communicating and working effectively in the battery recycling industry. He is an effective decision maker in dynamic business environments. Able to generate solutions to problems using scientific and critical thinking skills. At Taisen Recycling Company, he was in charge of the overall business execution of the recycling company by balancing innovation and profitability under six departments. Experience in reprocessing of scrap battery plus trading e-waste. He successfully managed the annual turnover as below:

As the co-founder and CEO, he managed the business cooperation with suppliers such as BYD, YIN; LONG, FARASIA, BAK, HUAWEI, and LISHEN. Mr. Jayden owns a bachelor’s degree in Executive Management from the Asia & University Kuala Lumpur,Malaysia,and an MBA of Economics from the University Technology Malaysia – UTM Skudai Joho.

Shalu Agarwal, PhD. is Power Electronics and Materials Analyst at Yole Développement (Yole),within the Power & Wireless division. Based on Seoul, Shalu is engaged in the development of technology & market reports as well as the production of custom consulting studies.
Shalu has more than 10 years’ experience in Electronic Material Chemistry. Before joining Yole, she worked as a project manager and research professor in the field of electronic materials, batteries and inorganic chemistry.
Shalu Agarwal received her master’s and Ph.D. degree in Chemistry from the Indian institute of Technology (IIT) Roorkee (India).

Lithium-ion Battery Recycling Market & Technology Trends 2020