How recycled batteries play a dual role for microgrids

Source: Lisa Cohn | · MICROGRID KNOWLEDGE · | January 16, 2023

Recycling batteries creates both a resource and a market for microgrids

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As battery recycling and repurposing grow, microgrids can supply electricity for the recycling and then use the batteries.

Microgrids can benefit from the increase in battery recycling and repurposing, either by providing electricity for recycling operations or by using less expensive and more sustainably produced repurposed batteries or recycled materials.

A number of factors are moving the battery recycling and repurposing markets in ways that could benefit the microgrid industry. The move to electric vehicles (EVs) and electrification are boosting demand, while low supplies of the raw materials are increasing battery prices. These factors mean recycling and repurposing are important.

McKinsey estimates that, compared to new batteries, second-life batteries are 30% to 70% less expensive. And the Union of Concerned Scientists says that by 2050, battery recycling could supply 22% to 27% of lithium, 40% to 46% of nickel and 45% to 52% of cobalt needed for EVs in the US.