Battery Resourcers Secures $20M Funding for Recycling & Manufacturing

The Rise of Battery Recycling and Manufacturing: Battery Resourcers Secures $20 Million

With the accelerating adoption of electric vehicles, a significant challenge is emerging: the responsible disposal of end-of-life EV batteries. The anticipated volume of these used batteries reaching the end of their useful life by the decade’s end necessitates innovative solutions.

A Closed-Loop Approach to Battery Materials

Battery Resourcers offers a comprehensive solution centered around battery recycling. However, their approach extends beyond simple material recovery. The company has developed a unique “closed loop” system designed to transform recycled battery components into nickel-manganese-cobalt cathodes, which are then sold directly back to battery manufacturers.

Furthermore, Battery Resourcers is actively refining a process for the recovery and purification of graphite, a crucial material utilized in battery anodes, bringing it to battery-grade quality.

Series B Funding and Investor Confidence

The company’s innovative business model has garnered substantial investor interest, culminating in a $20 million Series B equity round. This funding was spearheaded by Orbia Ventures, with contributions from At One Ventures, TDK Ventures, TRUMPF Venture, Doral Energy-Tech Ventures, and InMotion Ventures.

CEO Mike O’Kronley has not disclosed the company’s current valuation following this investment.

Distinguishing Factors in Battery Recycling

The cathode and anode, alongside the electrolyte, represent the core components of battery architecture. O’Kronley emphasized to TechCrunch that the integration of recycling with manufacturing is what sets Battery Resourcers apart from conventional recyclers.

“Our process involves the creation of cathode active material – we aren’t merely recovering the metals contained within the battery, as many other recycling operations do,” he explained. “We reclaim these materials and formulate entirely new cathode active material, and also recover and purify the graphite active material. These two active materials are then sold to battery manufacturers for use in new battery production.”

A Contrast with Traditional Recycling Methods

O’Kronley further clarified the difference, stating, “Other recycling companies primarily focus on recovering metals like copper, aluminum, nickel, and cobalt from batteries. They then sell these recovered metals as commodities to various industries, with no guarantee they will be reintroduced into battery production.”

Reducing Reliance on Mined Materials

Battery Resourcers’ technology has the potential to significantly decrease the battery industry’s dependence on newly mined metals – a reliance projected to increase dramatically in the coming years. A study released last December indicated that demand for cobalt could surge by a factor of 17, while nickel demand could increase by a factor of 28, contingent upon EV adoption rates and advancements in battery chemistries.

Expanding Capacity and Facilities

Currently, the company operates a demonstration facility in Worcester, Massachusetts, and a supplementary facility in Novi, Michigan, dedicated to analytical testing and material characterization. Combined, these sites can produce approximately 15 tons of cathode materials annually.

This latest funding will be instrumental in establishing a commercial-scale facility. Battery Resourcers anticipates this new facility will enable them to process 10,000 tons of batteries per year, equivalent to the batteries from roughly 20,000 electric vehicles.

Processing Diverse Battery Chemistries

A key aspect of their proprietary recycling process is the ability to handle both older and newer EV battery types, processing them to create the latest generation of cathode materials. A company representative explained to TechCrunch that they can “take in 10-year-old batteries from a Chevy Volt and reformulate the metals to make the high-Ni cathode active materials in use today.”

Automaker Interest and Strategic Partnerships

Battery Resourcers is currently engaging with inquiries from both automotive manufacturers and consumer electronics companies, according to O’Kronley, though specific details remain undisclosed. InMotion Ventures, the venture capital arm of Jaguar Land Rover, highlighted its participation in the round as a “significant investment.”

Sebastian Peck, managing director of InMotion, stated that “[Battery Resourcers’] proprietary end-to-end recycling process supports Jaguar Land Rover’s journey to become a net zero carbon business by 2039.”

Origins and Prior Support

Founded in 2015 as a spin-off from Worcester Polytechnic Institute in Massachusetts, Battery Resourcers has previously received funding and support from the National Science Foundation and the U.S. Advanced Battery Consortium, a collaborative effort involving General Motors, Ford Motor Company, and Fiat Chrysler Automobiles.