{"id":173760,"date":"2025-06-10T19:49:08","date_gmt":"2025-06-10T19:49:08","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/173760\/"},"modified":"2025-06-10T19:49:08","modified_gmt":"2025-06-10T19:49:08","slug":"battery-recyclers-dont-know-how-to-respond-to-trumps-clean-energy-reversal","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/173760\/","title":{"rendered":"Battery Recyclers Don’t Know How to Respond to Trump\u2019s Clean Energy Reversal"},"content":{"rendered":"

In a recycling facility in Covington, Georgia, workers grind up dead batteries into a fine, dark powder. In the past, the factory shipped that powder, known in the battery recycling industry as black mass, overseas to refineries that extracted valuable metals like cobalt and nickel. But now it keeps the black mass on site and processes it to produce lithium carbonate<\/a>, a critical ingredient for making new batteries to power electric vehicles and store energy on the grid.<\/p>\n

From Nevada<\/a> to Arkansas<\/a>, companies are racing to dig more lithium out of the ground to meet the clean energy sector\u2019s surging appetite<\/a>. But this battery recycling facility, owned by Massachusetts-based Ascend Elements<\/a>, is the first new lithium carbonate producer in the nation in years \u2014 and the only source of recycled lithium carbonate in North America. The company is finalizing upgrades to its Covington facility that will allow it to produce up to 3,000 metric tons of lithium carbonate per year beginning later this month. Right now, the only other domestic source of lithium carbonate is a small mine<\/a> in Silver Peak, Nevada.<\/p>\n

Since January, President Donald Trump has taken a sledgehammer<\/a> to the Biden administration\u2019s efforts to grow America\u2019s clean energy industry. The Trump administration has frozen grants and loans<\/a>, hollowed out key agencies<\/a>, and used executive action to stall renewable energy projects<\/a> and reverse climate policies<\/a> \u2014 often in legally dubious ways<\/a>. At the same time, citing economic and national security reasons, Trump has sought to advance<\/a> efforts to produce more critical minerals like lithium in the United States. That is exactly what the emerging lithium-ion battery recycling industry<\/a> seeks to do, which is why some industry insiders are optimistic<\/a> about their future under Trump.<\/p>\n

Nevertheless, U.S. battery recyclers face uncertainty due to fast-changing tariff policies, the prospect that Biden-era tax credits could be repealed<\/a> by Congress as it seeks to slash federal spending, and signs that the clean energy manufacturing boom is fading<\/a>.<\/p>\n

Battery recyclers are in \u201ca limbo moment,\u201d said Beatrice Browning, a recycling expert at Benchmark Mineral Intelligence, which conducts market research for companies in the lithium-ion battery supply chain. They\u2019re \u201cwaiting to see what the next steps are.\u201d<\/p>\n

To transition off fossil fuels, the world needs a lot more big batteries that can power EVs and store renewable energy for use when the wind isn\u2019t blowing or the sun isn\u2019t shining. That need is already causing demand for the metals inside batteries to surge. Recycling end-of-life batteries \u2014 from electric cars, e-bikes, cell phones, and more \u2014 can provide metals to help meet this demand while reducing the need for destructive mining<\/a>. It\u2019s already happening on a large scale in China, where most of the world\u2019s lithium-ion battery manufacturing<\/a> takes place and where recyclers benefit from supportive government policies<\/a> and a steady stream of manufacturing scrap.<\/p>\n

When the Biden administration attempted to onshore clean energy manufacturing, U.S. battery recyclers announced major expansion plans, propelled by government financing and other incentives. Under former president Joe Biden, the U.S. Department of Energy, or DOE, launched research and development initiatives<\/a> to support battery recycling and awarded hundreds of millions of dollars in funding to firms seeking to expand operations. The DOE\u2019s Loan Program\u2019s Office also offered<\/a> to lend<\/a> nearly $2.5 billion to two battery recycling companies.<\/p>\n

The industry also benefited from tax credits established or enhanced by the 2022 Inflation Reduction Act, the centerpiece of Biden\u2019s climate agenda. In particular, the 45X advanced manufacturing production credit<\/a> subsidizes domestic production of critical minerals, including those produced from recycled materials. For battery recyclers, the incentive \u201chas a direct bottom-line impact,\u201d according to Roger Lin, VP of government affairs at Ascend Elements.<\/p>\n

The DOE didn\u2019t respond to Grist\u2019s request for comment on the status of Biden-era grants and loans for battery recycling. But recyclers report that at least some federal support is continuing under Trump.<\/p>\n

In 2022, Ascend Elements was awarded a $316 million DOE grant<\/a> to help it construct a second battery recycling plant in Hopkinsville, Kentucky. That grant, which will go toward building capacity to make battery cathode precursor materials from recycled metals, \u201cis still active and still being executed on,\u201d Lin told Grist, with minimal impact from the change in administration. Ascend Elements expects the plant to come online in late 2026.<\/p>\n

American Battery Technology Company, a Reno, Nevada-based battery materials firm, told a similar story. In December, the company finalized a $144 million DOE contract<\/a> to support the construction of its second battery recycling facility, which will extract and refine battery-grade metals from manufacturing scrap and end-of-life batteries. That grant remains active with \u201cno changes\u201d since Trump\u2019s inauguration, CEO Ryan Melsert told Grist.<\/p>\n

Yet another battery recycler, Cirba Solutions, recently learned that a $200 million DOE grant<\/a> to help it construct a new battery recycling plant in Columbia, South Carolina, is moving forward. At full capacity, this facility is expected to produce enough battery-grade metals to supply half a million EVs a year. Cirba Solutions is also still spending funds from two earlier DOE grants, including a $75 million grant to expand a battery processing plant in Lancaster, Ohio.<\/p>\n

\u201cI think that we aligned very much to the priorities of the administration,\u201d Danielle Spalding, VP of communications and public affairs at Cirba Solutions, told Grist.<\/p>\n

Those priorities include establishing the U.S. as \u201cthe leading producer and processor of non-fuel minerals,\u201d and taking steps to \u201cfacilitate domestic mineral production to the maximum possible extent,\u201d according to executive<\/a> orders<\/a> signed by Trump in January and March. Because critical minerals are used in many high-tech devices, including military weapons, the Trump administration appears to believe America\u2019s national security depends on controlling their supply chains. As battery recyclers were quick to note<\/a> following Trump\u2019s inauguration, their industry can help.<\/p>\n

\u201cCritical minerals are central to creating a resilient energy economy in the U.S., and resource recovery and recycling companies will continue to play an important role in providing another domestic source of these materials,\u201d Ajay Kochhar, CEO of the battery recycling firm Li-Cycle, wrote in a blog post<\/a> reacting to one of Trump\u2019s executive orders on energy.<\/p>\n

Li-Cycle, which closed a $475 million loan<\/a> with the DOE\u2019s Loan Programs Office in November but is now facing possible bankruptcy<\/a>, didn\u2019t respond to Grist\u2019s request for comment.<\/p>\n

While Biden\u2019s approach to onshoring critical mineral production was rooted in various financial incentives, Trump has pursued the same goal using tariffs \u2014 and by attempting to fast-track new mines<\/a>. Although economists have criticized Trump\u2019s indiscriminate and unpredictable application of tariffs, some battery recyclers are cautiously optimistic they will benefit from increased trade restrictions. In particular, recyclers see the escalating trade war with China \u2014 including recent<\/a> limits<\/a> on exports of various critical minerals to the U.S. \u2014 as further evidence that new domestic sources of these resources are needed. (China is the world\u2019s leading producer of most key battery metals.)<\/p>\n

\u201cThere is a chance that limiting the amount that is being imported from China \u2026 could really strengthen\u201d mineral production in other regions, including the U.S., Browning said.<\/p>\n

Trade restrictions between the U.S. and key partners outside of China could be more harmful. Today, Browning says, U.S. recyclers often sell the black mass they produce to refiners in South Korea, which don\u2019t produce enough domestically to meet their processing capacity and are paying a premium<\/a> to secure material from abroad. Trump imposed<\/a> 25 percent tariffs on Korean imports in April, before placing them on a 90-day pause. If South Korea were to implement retaliatory tariffs in response, it could cut off a key revenue stream for the U.S. industry. However, recycling companies Grist spoke noted that there are currently no export bans or tariffs affecting their black mass, and emphasized their plans to build up local refining capacity.<\/p>\n

\u201cThe short answer is that we see the tariffs as an opportunity to focus on domestic manufacturing,\u201d Spalding of Cirba Solutions said.<\/p>\n

While battery recyclers seem to align with Trump on critical minerals policy, and to some extent on trade, their interests diverge when it comes to energy policy. Without a clean energy manufacturing boom in the U.S., there would be far less need for battery recycling.<\/p>\n

Today, nearly 40 percent of the material available to battery recyclers in the U.S. is production scrap from battery gigafactories, according to data from Benchmark. Another 15 percent consists of used EV batteries that have reached the end of their lives or been recalled, while grid storage and micromobility batteries (such as e-bike batteries) account for 14 percent. The remaining third of the material available for processing is portable batteries, like those in consumer electronics.<\/p>\n

In the future, as more EVs reach the end of their lives, an even greater fraction of battery scrap will come from the clean energy sector. If a large number of planned battery and EV manufacturing facilities are canceled in the coming years \u2014 due to a repeal of Inflation Reduction Act tax incentives, a loss of federal funding, rising project costs, or perhaps all three \u2014 the recycling industry may have to scale back its ambitions, too.<\/p>\n

The budget bill that passed the House<\/a> in May would undo a number of key Inflation Reduction Act provisions. Some clean energy tax credits, like the consumer EV tax credit, would be eliminated at the end of this year. The legislation was kinder<\/a> to the 45X manufacturing credit, scheduling it to end in 2031 rather than the current phase-out date of 2032. But the bill could face significant changes<\/a> in the Senate before heading to Trump\u2019s desk, possibly by July 4.<\/p>\n

Despite uncertainty over the fate of IRA tax credits, Trump\u2019s actions have already put a damper on U.S. manufacturing: Since January, firms have abandoned or delayed plans for $14 billion worth<\/a> of U.S. clean energy projects, according to the clean tech advocacy group E2.<\/p>\n

While the battery recyclers Grist spoke with are putting on a brave face under Trump\u2019s second term, some are also looking to hedge their bets. As Ascend Elements ramps up lithium production in Georgia, it has lined up at least one buyer outside the battery supply chain. The battery industry accounts for nearly 90 percent<\/a> of lithium demand globally, but the metal is also used in various industrial applications, including ceramics and glass making.<\/p>\n

Integrating into the EV battery supply chain remains \u201cthe ultimate goal,\u201d Lin told Grist. \u201cBut we are looking at other plans to ensure \u2026 the economic viability of the operation continues.\u201d<\/p>\n

This article originally appeared in Grist<\/a> at https:\/\/grist.org\/technology\/trump-battery-recycling-lithium-grants-funding-tariffs-ira-tax-credits\/<\/a>.\u00a0Grist is a nonprofit, independent media organization dedicated to telling stories of climate solutions and a just future. Learn more at Grist.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"In a recycling facility in Covington, Georgia, workers grind up dead batteries into a fine, dark powder. In…\n","protected":false},"author":2,"featured_media":173761,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3843],"tags":[11078,15492,728,70,1166,16,15],"class_list":{"0":"post-173760","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-environment","8":"tag-batteries","9":"tag-battery-recycling","10":"tag-environment","11":"tag-science","12":"tag-trump-administration","13":"tag-uk","14":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114660806653493027","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/173760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=173760"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/173760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/173761"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=173760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=173760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=173760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}