Economic analysis of lithium-ion battery recycling

Eduardo Enrique Martinez Jorges; António M.N. Quintino; Diogo M.F. Santos; Eduardo Enrique Martinez Jorges; António M.N. Quintino; Diogo M.F. Santos

doi:10.3934/energy.2023045

AIMS Energy

2023, Volume 11, Issue 5: 960-973. doi: 10.3934/energy.2023045

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Research article

Economic analysis of lithium-ion battery recycling

1.
Center of Physics and Engineering of Advanced Materials, Laboratory for Physics of Materials and Emerging Technologies, Chemical Engineering Department, Instituto Superior Técnico, Universidade de Lisboa, 1049-001 Lisbon, Portugal
2.
CEGIST-Centre for Management Studies of Instituto Superior Técnico, Universidade de Lisboa, 1049-001 Lisbon, Portugal

Received: 08 June 2023 Revised: 26 August 2023 Accepted: 17 September 2023 Published: 11 October 2023

Battery needs are increasing due to the exponential growth in demand for electric vehicles and renewable energy generation. These factors lead to the growing waste management of lithium-ion batteries (LIBs). Thus, recycling or finding a second life for LIBs is a growing industry due to its environmental and economic benefits. This work compares the benefits, economic advantages and disadvantages of battery recycling, including second-life battery applications. Different reports and case studies are analyzed to define the materials that may be recovered and the efficiency of the recycling process. To understand the economics of using recycled, second use, or new LIBs, this work evaluates three distinct projects, namely residential, commercial, and solar farm storage. The investigation aims to calculate and compare the net present value (NPV) for the residential storage project and the equivalent annual cost (EAC) for each project to determine the most viable industrial process within those parameters. The data analysis demonstrated that the second-life battery project has the lowest EAC, making it the most viable industrial process. However, although the second-life battery project presents the highest NPV for the project's first 10 years, the recycled battery project shows the highest NPV for the remainder of a typical 20-year project.
- lithium-ion batteries,
- second life,
- recycling batteries,
- battery reuse,
- battery refurbishing
Citation: Eduardo Enrique Martinez Jorges, António M.N. Quintino, Diogo M.F. Santos. Economic analysis of lithium-ion battery recycling[J]. AIMS Energy, 2023, 11(5): 960-973. doi: 10.3934/energy.2023045

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Abstract

Battery needs are increasing due to the exponential growth in demand for electric vehicles and renewable energy generation. These factors lead to the growing waste management of lithium-ion batteries (LIBs). Thus, recycling or finding a second life for LIBs is a growing industry due to its environmental and economic benefits. This work compares the benefits, economic advantages and disadvantages of battery recycling, including second-life battery applications. Different reports and case studies are analyzed to define the materials that may be recovered and the efficiency of the recycling process. To understand the economics of using recycled, second use, or new LIBs, this work evaluates three distinct projects, namely residential, commercial, and solar farm storage. The investigation aims to calculate and compare the net present value (NPV) for the residential storage project and the equivalent annual cost (EAC) for each project to determine the most viable industrial process within those parameters. The data analysis demonstrated that the second-life battery project has the lowest EAC, making it the most viable industrial process. However, although the second-life battery project presents the highest NPV for the project's first 10 years, the recycled battery project shows the highest NPV for the remainder of a typical 20-year project.

References

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