LIB raw material costs are an essential factor for both the growth of the EV market and the profitability of battery recycling. Studies indicate that the costs for materials can account for half to up to two thirds of total battery cell cost [1] [2]. Among those materials, cobalt, nickel, lithium and copper are priced highest on the market and therefore drive most of the overall costs.

In addition to the financial pressure, risk of supply and social concerns are relevant for regions like Europe, which are highly dependent on the import of such materials. In its list of critical raw materials from 2017, the EU classified two LIB components, natural graphite and cobalt, as critical due to their economic importance and supply risk. Whereas natural graphite (as the anode material) can be substituted with the currently higher priced artificial graphite, the strategy for cobalt comes in a battery chemistry change towards lower cobalt and higher nickels contents.

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References:

[1]    M. P. G. A. E. A. J. Van Mierlo Maarten Messagie, “Eco-Efficiency of a Lithium-Ion Battery for Electric Vehicles: Influence of Manufacturing Country and Commodity Prices on GHG Emissions and Costs,” MDPI, 2019.
[2]    J. F. W. Rebecca E. Ciez, “Comparison between cylindrical and prismatic lithium-ion cell costs using a process based cost model,” J. Power Sources, vol. 340, pp. 273–281, 2017.
[3]    “BGR - Preismonitor.” https://www.deutsche-rohstoffagentur.de/DERA/DE/Rohstoffinformationen/Rohstoffpreise/Preismonitor/preismonitor_node.html (accessed Apr. 17, 2020).