Battery recycling key to further spread of EVs in Japan
With electric vehicles becoming a realistic option for Japanese consumers thanks to the releases of many new models last year, including more budget-friendly ones, battery recycling holds the key to the further spread of EVs.
The Japanese auto industry is currently trying to come up with ways to ensure that used electric vehicle batteries are recycled and reused within the country.
Such batteries contain large amounts of lithium, nickel and other rare metals that Japan heavily relies on imports for.
For this reason, used electric vehicle batteries are a valuable resource dubbed an "urban mine."
Despite their seemingly significant role, a survey by the Japan Research Institute Ltd. showed that, while the total number of used electric vehicles in Japan stood at around 110,000 as of 2024, over 80 pct of them have likely been exported overseas along with their batteries.
The value of rare metals shipped outside Japan is estimated to be about 17.5 billion yen.
In light of the circumstances, Panasonic Energy Co., a subsidiary of Panasonic Holdings Corp., teamed up with Sumitomo Metal Mining Co. Since March last year, the two companies have been working to extract nickel from waste generated at a Panasonic Energy in-vehicle battery factory for use as a battery material.
Although Panasonic Energy is considering expanding the recycling scheme, commercialising it would require collecting and disassembling batteries, as well as a system and technology to extract and refine rare metals.
Given that the volume of used batteries in circulation remains low and the recycling scheme is not profitable now, Tetsuo Nanno of Panasonic Energy said, "Having several companies join forces is the trickiest part in creating a (recycling) scheme."
The Japan Automobile Manufacturers Association believes that battery recycling is crucial to promoting the further spread of EVs.
"We need a system to recycle scarce resources," said Koji Sato, chairman of the association and also president of Toyota Motor Corp. "The entire industry must work together (to achieve this goal)."
Local governments have sprung into action.
Together with Nissan Motor Co. and other companies, the Fukuoka prefectural government launched an initiative in 2024 to build a system to recycle used batteries.
"There are many cases in which (battery recycling efforts) end up being one-time test runs that are not ultimately commercialised," said Takashi Momiyama of the Japan Research Institute.
Momiyama underscored the need for the country to work on establishing a scheme for recycling used batteries as a national strategy.
[Copyright The Jiji Press, Ltd.]
