6K Energy and Aqua Metals have agreed to create a circular critical minerals supply chain in the United States for domestic lithium-ion battery manufacturing.
The partnership is to establish a co-located facility in Jackson, Tennessee, where low-carbon cathode active materials (CAM) for new batteries will be made from domestically sourced end-of-life batteries and scrap materials.
The full-scale lithium battery recycling facility will be engineered and operated by Aqua Metals and will supply 6K Energy’s PlusCAM cathode manufacturing plant. The deal includes a proposed supply agreement for Aqua Metals' recycled materials to meet the PlusCam facility's 13,000-ton annual capacity.
The PlusCam facility will reportedly be the first UniMelt plasma cathode manufacturing plant in the world, and it will allow for low-cost, sustainable domestic battery material production. More than $350 million has been raised for the plant’s build-out and expansion, including a $50 million grant from the Department of Energy.
Demand for lithium-ion batteries, commonly used in electric vehicles, has increased as more consumers shift away from fossil fuel-powered vehicles.
The potential damage caused by critical mineral extraction used in lithium-ion batteries has become a concern as the widespread use of EVs is meant to improve the environment rather than cause further harm. Critical minerals are also a finite resource, so creating a circular supply chain for lithium-ion batteries is considered a necessary step in allowing for affordable, long-term EV use.
Yet, not all recycling processes are created equal -- some may cause emissions in their operations or contribute to landfill waste. Aqua Metals uses a closed-loop, low-temperature recycling system, lowering landfill waste by 95% when compared to current battery recycling processes. The efficient process uses electricity rather than furnaces or chemicals, allowing for both lower emissions and lower operating costs.
“As the world grapples for control over the critical minerals essential for lithium batteries, together with 6K Energy we are building a resilient domestic supply chain for the valuable metals that will power an electrified future,” said Steve Cotton, president and CEO of Aqua Metals. “Through our partnership, we will be able to make the best use of these scarce resources, recycling them back into the value chain by creating cathode battery material from recycled content – strengthening U.S. manufacturing capabilities and bolstering resilience to supply chain disruptions as we accelerate the clean energy economy.”
