Li-Cycle, once a leading electric vehicle (EV) battery recycler in North America, filed for bankruptcy protection in the U.S. and Canada after years of challenges launching a key recycling facility in Rochester, New York. The Toronto-based company aimed to extract lithium and other vital minerals from recycled batteries to create new EV batteries—a crucial step not yet commercially achieved in North America. Experts say the bankruptcy signals the urgent need for government regulations to support and incentivize the EV battery recycling industry.
With over 600,000 EVs on Canadian roads, recycling worn-out batteries to recover valuable minerals is essential. However, Canada lacks federal regulations or a national framework for EV battery recycling. Provinces like British Columbia have retreated from proposed regulations, leaving the market without clear policy support. EV sales continue to rise, representing 17 percent of new car sales in 2024, but the absence of regulation threatens preparedness for the influx of end-of-life batteries expected in coming decades.
Recycling lithium-ion batteries involves shredding them into “black mass,” containing critical minerals such as lithium, cobalt, and nickel, which must be extracted and refined to manufacture new batteries. While Canadian firms have begun producing black mass, full mineral extraction remains mostly overseas, particularly in China and Southeast Asia. Industry experts stress that clear, long-term regulations mandating recycled content in new batteries are vital to drive market demand and investor confidence.
Canada’s lack of cohesive policy contrasts with the European Union’s 2023 regulations requiring recycled content and expanded producer responsibilities, providing a stable framework for sustainable battery recycling. Without similar policies, experts warn Canada risks missing opportunities to manage EV battery waste, build infrastructure, and foster a circular economy for electric vehicles.
Swifteradio.com
