Panasonic Energy Co., Ltd., a Panasonic Group company, has announced a strategic collaboration with Sumitomo Metal Mining Co., Ltd. to launch a nickel recycling initiative for lithium-ion battery cathode materials. This marks Panasonic Energy’s first closed-loop recycling initiative for automotive batteries, where end-of-life battery materials are repurposed into new battery production. The partnership builds on Panasonic Energy’s ongoing efforts to advance circular economy initiatives, following its collaboration with Redwood Materials Inc. in the U.S. since 2022.

As part of this initiative, Sumitomo Metal Mining will recover nickel from battery scrap generated at Panasonic Energy’s factory in Japan. The recycled nickel will then be processed into cathode materials and reused in the company’s lithium-ion batteries. This closed-loop "battery-to-battery" recycling model contributes to resource sustainability by reducing dependence on virgin materials and promoting a more efficient reuse of critical battery components.

Sumitomo Metal Mining has been engaged in the recovery and recycling of copper and nickel from end-of-life lithium-ion batteries since 2017. Through this collaboration, battery scrap from Panasonic Energy’s Suminoe Factory in Osaka will be processed at Sumitomo Metal Mining’s Toyo Smelter & Refinery and Niihama Nickel Refinery in Ehime Prefecture. The resulting nickel sulfate will be used in the production of new cathode materials, ultimately supporting the manufacturing of lithium-ion batteries.

Initially, the program will focus on nickel recycling, with plans to expand by 2026 to include other key battery materials such as lithium and cobalt. Panasonic Energy aims to integrate at least 20% recycled cathode materials into its automotive batteries by 2027. Additionally, utilizing recycled metals through urban mining significantly reduces CO2 emissions compared to traditional mining practices. This initiative is a vital part of Panasonic Energy’s broader sustainability goals, which include halving its carbon footprint by fiscal 2031 compared to fiscal 2022 levels.

With the increasing adoption of electric vehicles (EVs), the volume of retired automotive batteries is expected to peak around 2030. Rare metals like nickel, cobalt, and lithium are essential for lithium-ion batteries but are becoming increasingly scarce. Establishing an efficient battery recycling system is crucial for sustaining the growth of the EV industry and securing a stable supply of these valuable materials.

Kazuo Tadanobu, CEO of Panasonic Energy, emphasized the significance of this initiative, stating, “Building a sustainable recycling scheme for end-of-life lithium-ion batteries is essential for the future of EVs. We are advancing recycling efforts in both Japan and the U.S., and our partnership with Sumitomo Metal Mining, a leader in non-ferrous metal recycling, strengthens our commitment to a circular economy. This collaboration aligns with our mission of fostering a sustainable society.”