Stena Recycling invests to handle EV batteries

Gothenburg, Sweden-based Stena Recycling says in recent years it has invested more than 500 million Swedish krona ($54.5 million) in services and equipment to engage in electric vehicle (EV) battery recycling activities.

The says it has built one of Europe’s largest battery recycling facilities in Halmstad, Sweden, and battery collection centers in several European countries.

The end‑of‑life EV battery market will generate $28 billion in economic activity globally within 10 years, says Marcus Martinsson, a product area manager for batteries at Stena Recycling Group.

Martinsson says such activities will include materials recycling and finding ways to reuse automotive batteries that still have remaining capacity and can be used in other applications.

In terms of materials recycling, the company on its website says it can “extract critical resources such as lithium, cobalt and nickel in what is called black mass” as well as collect EV production scrap including battery cells, copper foil, aluminum and plastic.

The firm also is investing to reuse ELV batteries. “Batteries are valuable, and there is increased interest in giving them a second life before recycling,” says Martinsson. “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.”

Continues the executive, “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 [more than $50 million} in turnover in five to seven years.”

The company says used EV batteries with remaining capacity can be redeployed in forklifts or for energy storage, generating revenue for car manufacturers and other stakeholders in the automotive and battery industries.

At Stena Recycling’s battery centers in Europe, end-of-life vehicle (ELV) batteries undergo a “health check” to assess their remaining capacity. This requires specialized expertise and customized systems and algorithms, says Stena Recycling, which adds it has invested heavily in acquiring expertise within reuse and in building a partner network to manage the entire reuse process.

In addition, expertise is needed in handling and transporting hazardous materials and navigating the highly complex regulatory framework for the safe reuse of batteries, adds the firm.

“The industry is constantly changing, and to succeed in the future we must meet the increasing needs of the automotive sector,” says Martinsson. “EV 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 slower growth is not necessarily a bad circumstance, says the executive. “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 Martinsson.

Stena Recycling describes itself as having developed a considerable presence in the Scandinavian and Nordic countries and as having existing operations in Germany, Italy and Poland.