Battery recycling-

The Big PictureShane Thompson

President

Verdant Holdings Limited

Introduction to Verdant

20 years of unique experience in a unique field

Consulting on battery recycling and how battery recycling is the perfect

microcosm for the circular economy

Investments in battery materials

Working in the greater battery value chain;

Titan Advanced Energy

Cellblock FCS

Pi Software

The Big Picture-Circular Economy

The concept of movement away from the liner economy

The old method of obtaining natural resources (conventional mining) to

produce products is simply not sustainable as we add almost 3 Billion new

global middle class consumers in the next 20 years. We would be several

planets short.

Macroeconomics-Sustainability is the 6th

Wave…

Sustainable Development is at the

center of the emerging sixth wave of

technology

Kondratieff

Circular Economy- Impact of Critical

Materials and Global Supply Chains Global implications. The current trade policies are

highlighting that these natural resources and the

products that they enable are taking on a geopolitical

component

Battery materials have some similar issues to other New

Energy Metals such as rare earth elements. Batteries are needed to provide the power for our world continuing to

change, and the batteries need materials. These

materials can be problematic in their availability.

China’s dominance in REE may foreshadow their position

on batteries (which they hold a similar dominate position

in terms of production)

Source: Grilli and Yang; Pfaffenzeller; World Bank;

International Monetary Fund; Organization for

Economic Cooperation and Development (OECD);

Food and Agriculture Organization of the United

Nations (FAO); UN Comtrade; Ellen MacArthur

Foundation; McKinsey Global Institute

Commodity Price Development

An All Electric Vehicle Future

Carbon Impact on Electrification

An all Electric Future…maybe not, what factors will get parsed out and when.

Competing interests; Climate Change vs. Oil based production. In addition to the petroleum based ICE, the petrochemical industry is a large GHG contributor. This is a growing industry that provides plastics, fertilizers, tires, detergents etc.…

China is a driver in this decision making

Will regulation continue to push towards vehicle electrification (the Jervis phenomenon)? The fixation on EV’s as a panacea for climate change

Electrification of Vehicles

Increase in production, part of the e-

mobility movement which includes

autonomous driving and ride sharing.

Thomas Davenport-credited with

building the first EV in 1835

Lg. Format Batteries; Information

Storage/Data Centers

Movement to Zettabyte

Pb batteries and Li Ion CAPEX and OPEX are almost equally inverted-the tie

breaker will be space.

The “cloud” is actually a really big concrete building with a lot of servers and

batteries.

2025

160 Zettabytes

Small Format-IOT and Lifestyle

Technology Smaller batteries powering sensors and remote devices that enable smart

technology.

Large Batteries to support data center storage

Rechargeable Battery Market

Batteries

Composition-form factor

Cathode

Anode

Everything else, separator, chemicals.

Li Ion Batteries

The chemistry at the center of all of this growth is Lithium Ion

Why?

Will continue in this position for the near term (the battery industry has solved all the easy problems) and certainly for the recycler.

1. Lithium Cobalt Oxide (LCO)

2. Lithium nickel manganese cobalt (NMC)

3. Lithium nickel cobalt aluminum (NCA)

4. Lithium Iron Phosphate (LFP)

5. Lithium manganese oxide (LMO)

Battery materials New Energy Metals-the EV

revolution will have a profound impact on New Energy Metals, particularly Nickel and Cobalt.

Batteries will be a paradigm shift in Nickel demand-There is already a market for Ni (stainless) that is critical and has growth demands.

Battery Materials continued

Not all Nickel is the same

Class II 52% of the global market (2 MT) Ni content NPI 2-12% and FeNi 15-30%

Class I 48% of the global market 99.98% or higher includes Ni chemicals such as nickel sulphate.

Cobalt supply is inelastic. Co-mined mineral and DRC represents risk

NMC Cathode Mfg. Schematic

Nickel Demand for the

battery market

Battery Size is

increasing from

30kWh to 60kWh

NCM333 NCM622

NCA

NCM811

2000 kt

200 kt

2018 2020 2025 2030

Nickel Market Size Today

------------------------------------------------2200 kt

1000 kt

350-700kt

Battery

technology

8.1.1 favors Ni

Collections

Challenging to collect post consumer batteries, variability in chemistry form

factor and safety applications.

Will be less of an issue with large format, but these pose different challenges

Regulations

Recycling is

limited in US

compared to EU

99% of all lead-acid batteries are

recycled-different model which takes

advantage of some unique factors

U.S. battery recycle statistics outside

of lead are not definitive, working on

building a consortium for reporting.

Estimations would be that only 8%-12%

of all primary and rechargeable

batteries are recycled

U.S. vs. European Battery Collection Rates

European regulatory intervention is avid and widely accepted

U.S. lacks regulatory intervention, with the exception of lead-acid batteries

European Directive 2002/96/EC states

the following minimum collection rates for

batteries:

(a) 25 % by 26 September 2012;

(b) 45 % by 26 September 2016.

Slovakia 66%

Luxembourg 65%

Belgium 55%

Austria 54%

Finland 46%

Bulgaria 45%

Denmark 44%

Germany 44%

France 38%

Poland 33%

Ireland 33%

State Battery Recycling Law

3119

States that have battery

recycling laws

versus

Don’t yet have state battery

recycling laws

Processing No Li Ion processing the US

Canada-Retriev

Korea-Sungeel Hi tech

Belgium-Unicore

Germany-Accurec

Emerging Companies-

Li Cycle

Sungeel-Metallico

Battery Resourcers

Safety

Reutilization

Summary

Batteries and the technologies that they power are transformative and will

continue to be produced at a staggering rate.

The resources needed for the batteries are at the heart of a broader

conversation about criticality and the geopolitics associated with their

extraction.

The concept of the circular economy will continue to develop as the

preferred strategy as it is not only the right thing to do but it is the smart

thing to do.

Recycling can make a significant impact in battery recycling, by being the conduit to re-utilization of the batteries then reclamation of the resources

used to make the batteries and eventually closing the loop on the materials

i.e. battery to battery