Princeton working to scale process of efficiently recycling EV batteries through a spin-off company.

As electric vehicle industry players focus on integrating and scaling efficient recycling into the battery supply chain, circular solutions are coming to play a vital role in monetizing waste streams.

The National Academy of Science and Engineering estimates that the number of used EV batteries available will increase to 150 million in the year 2035. In 2020 alone, around 550,000 EV batteries were discarded. The improper disposal of lithium-ion batteries, classified as hazardous waste, poses risks of chemical fire, soil and groundwater contamination, as well as leaving money on the table in the form of valuable metals and minerals.

With overall battery recycling rates struggling to surpass 5% in the U.S., a widening critical waste management gap is paralleling continued EV adoption, necessitating innovative solutions to avoid runaway environmental impacts.

However, current recovery methods are costly and energy-intensive, driving the search for more efficient recycling as a growing industry priority.

To mitigate these pressures, Princeton NuEnergy (PNE) has developed an innovative direct-recycling process known as low-temperature plasma-assisted separation (LPAS), a method that rejuvenates spent cathodes. This process works in conjunction with a technique called micro-molten shell-assisted lithiation (MSAL), where lithium levels in aged materials are restored to levels comparable to those from virgin resources. Together, LPAS and MSAL reduce reliance on newly mined materials, making battery recycling more efficient and sustainable.

The process is a departure from conventional methods involving shredding and smelting materials and dissolving their components in acid to break the battery materials down into their elemental components.

Most recycling facilities involve wholesale battery shredding and either pyrometallurgy, which uses high temperatures to separate metals or hydrometallurgy, employing substantial water use and chemical leaching – both cause cathode material degradation and recover as little as 5% of the cathode material in spent batteries.

Conversely, PNE says its non-destructive LPAS process employs reduced energy output to remove impurities from battery components, upgrades and renews the cathodes themselves, and recovers up to 95% of the structure and composition of the used cathode for reuse in new batteries. In addition, the LPAS method reduces both water and energy consumption by 70%, slashing emissions by more than half and cutting costs by over 40%.

As battery technology evolves, ideal recycling processes such as PNE's plasma-based method must be adaptable to various battery designs, including those popular chemistries containing nickel, cobalt, and manganese (NCM) or nickel and aluminum oxide (NCA). It's also effective across lithium-ion battery types, including lithium cobalt oxide (LCO) used in consumer electronics and lithium iron phosphate (LFP) used in EVs.

It is also estimated that this form of recycling produces 69% fewer carbon emissions than conventional mining practices, resulting in new materials that are ready for reuse and cheaper than those produced from processing raw materials.

The U.S. Department of Energy has supported the company's expansion efforts with a Phase II grant of $1.15 million for the Small Business Innovation Research (SBIR) program. PNE has partnered with Fortune 500 Company Wistron GreenTech and eTak Worldwide to build a pilot production line in Dallas, Texas, and is actively working to scale its technology using $30 million in Series A funding supporting construction of its first commercial-scale lithium-ion battery recycling facility in South Carolina, set to begin operations in 2028.

This proposed facility is designed to recycle up to 10,000 metric tons of battery-grade material annually, the equivalent of supplying over 100,000 EVs each year. PNE has established additional collaboration partnerships to ensure a reliable supply of end-of-life batteries, an important step toward scaling its technology to meet the demands of a global EV market.

Princeton University's spin-off company addresses the urgent need for improved battery recycling methods as the number of spent lithium-ion batteries is expected to surge.

While quickly scaling worldwide recycling facilities remains a challenge, players like PNE are growing the recycling space, and advanced methods are beginning to transform battery waste into a valuable resource, supporting both industry growth and environmental sustainability.

By adopting more effective recycling solutions to offset hazardous waste disposal costs and provide a reliable supply of ready-to-use, high-grade recycled materials, the financial viability of large-scale recycling becomes more attractive for industry players and investors.