Dragonfly Energy has embarked on a groundbreaking initiative by harnessing lithium hydroxide derived from recycled batteries to manufacture battery cells. This innovative approach, with Aqua Metals at the forefront of recycling solutions for energy storage and electric vehicle supply chains, is set to redefine the sustainability of the battery manufacturing industry.

Dragonfly Energy has successfully created a lithium-based battery cell using high-purity lithium hydroxide obtained from recycled batteries. This proof of concept holds the potential to revolutionize the battery manufacturing sector by establishing a more sustainable and circular approach to production. This initiative underscores the importance of sustainable practices and responsible resource management as the energy storage and electric vehicle markets continue to expand and evolve.

The crucial step of lithium hydroxide recovery was undertaken by Aqua Metals, an organization dedicated to developing recycling solutions for materials integral to energy storage and electric vehicle supply chains. The collaboration between Dragonfly Energy and Aqua Metals is focused on realizing a closed lithium loop, where the entire lifecycle of lithium batteries – from sourcing to manufacturing and recycling – occurs within the state of Nevada.

Denis Phares, CEO of Dragonfly Energy, emphasized the significance of this endeavor, citing two key objectives it addresses. Firstly, it plays a pivotal role in closing the loop by integrating the critical recycling component into the process. Secondly, it establishes a sustainable and readily available source of lithium for use in future cell production.

The process involved Aqua Metals extracting lithium hydroxide from "black mass," a term used to describe a mixture of crushed and shredded battery cells that have already been used. This material contains lithium and other valuable raw materials. Dragonfly Energy utilized this recovered lithium hydroxide in the production of battery cells, employing a patented dry powder coating process.

The vision shared by both companies is to create a closed lithium loop within Nevada, a state they believe is ideally positioned to serve as the epicenter of lithium battery production. Nevada boasts the distinction of being the largest source of lithium in North America, according to the companies. Furthermore, it is witnessing substantial growth in the electric vehicle market and the adoption of energy storage technology applications.

This strategic move towards recycling lithium from used batteries represents a significant advancement in the pursuit of sustainability within the energy storage and electric vehicle industries. By effectively closing the loop on lithium battery production and recycling, Dragonfly Energy and Aqua Metals are contributing to a more environmentally responsible and resource-efficient approach to manufacturing.