- According to a statement released by the company, Fortum has found a new solution that makes over 80% of the electric vehicle (EV) battery recyclable.
- The recycling rate is achieved with a low-CO2 hydrometallurgical recycling process that returns the scarce metals back into circulation and resolves the sustainability gap by reducing the need to mine cobalt, nickel, and other scarce metals.
- Fortum estimates that the global battery recycling market could be worth at least EUR20bn per year by 2025.
Analysis & Comments
- Some other analysis indicates that the hydrometallurgical recycling process which Fortum is proposing to use (based on technology from the Finnish company Crisolteq) could be the future of battery recycling. Some analysts estimate that by 2028 c. $22bn of materials will be recycled, so similar to the Fortum estimate.
- Contrary to the Fortum press release, achieving an 80%+ recycling rate is fairly normal, in fact other companies such as CATL are already achieving higher rates than this. The 80% level as being Fortum’s starting point, and they should grow this as they scale up.
- Fortum is clearly making a move to be a leader in the whole green electrification value chain, with renewable energy & some material investments in EV recharging stations.