Electrification within the automotive industry continues despite the turbulence of recent years in the battery manufacturing sector. In the long term, large volumes of end‑of‑life batteries will need to be handled. This market, according to Marcus Martinsson, Product Area Manager for Batteries at Stena Recycling Group, will be worth SEK 260 billion globally within ten years. The previous focus was entirely on recycling, but demand is now increasing for smart ways to reuse automotive batteries that still have remaining capacity and can be used in other products.
Credit: Stena Metall
Electric-vehicle battery is prepared for recycling
Right now, a race is underway in Europe among companies working to manage the increasing number of batteries that need to be handled after having been used in passenger cars and other larger vehicles. Stena Recycling is one of several companies that have entered the industry. In recent years, the primary focus has been on recycling, not least to recover valuable minerals such as cobalt, lithium, and nickel.
However, automotive batteries have proven to have a longer lifespan than experts initially believed, which has created a new market for battery reuse. Used electric vehicle batteries with remaining capacity can, for example, be reused in forklifts or for energy storage, generating revenue for car manufacturers and other stakeholders in the automotive and battery industries. In this way, the batteries can be used for an additional seven to ten years before they are finally recycled.
“Batteries are valuable, and there is increased interest in giving them a second life before recycling. We see how the market is developing and how there is not only a need for recycling today. We need to deliver value across the entire chain, from production and handling to recycling. With our investment in developing our service offering within reuse, we are meeting demand and can also strengthen Stena Recycling’s position compared with other players in the market. We are currently one of the few actors that have begun developing an offering in both recycling and reuse, and we expect this business to continue growing. Overall, we believe our battery‑related operations will generate SEK 500 million in turnover in five to seven years,” says Marcus Martinsson.
Extending the life of batteries requires expert knowledge. At Stena Recycling’s battery centres around Europe, the batteries undergo a health check to assess their remaining capacity. It requires specialized expertise and customized systems and algorithms. Stena Recycling has invested heavily in acquiring expertise within reuse and in building a partner network to manage the entire reuse process on behalf of customers. From determining whether and how a battery can be reused in a new product, to selling them on to an appropriate stakeholder. Even though large volumes are often involved, all batteries are inspected individually. In addition, expertise is needed in handling and transporting hazardous materials and navigating the highly complex regulatory framework for the safe reuse of batteries.
“The industry is constantly changing, and to succeed in the future we must meet the increasing needs of the automotive sector. Electric vehicle sales have progressed more slowly than many first anticipated, but the handling of end‑of‑life batteries is a market that will grow significantly over time. The delay benefits us, as we have made long‑term investments. We need to look several years ahead, which is why we are expanding and strengthening our presence in strategic locations across Europe,” says Marcus Martinsson.
Stena Recycling has so far invested over SEK 500 million in battery‑handling initiatives. The company has, among other things, built one of Europe’s largest battery recycling facilities in Halmstad in Sweden, as well as battery collection centres in several European countries. Stena Recycling is a strong player in the Nordics, and an important focus going forward is developing existing operations in Poland, Germany, and Italy.