Government’s helping hand in battery recycling

Of the numerous U.S.-based battery recycling companies to receive federal funding through acts such as the Bipartisan Infrastructure Law (BIL), Charlotte, North Carolina-based Cirba Solutions is the first.

Since receiving grants totaling $82 million in late 2022 from the Department of Energy (DOE), the company has used the financial infusion to aid in the expansion of its lithium-ion battery (LIB) processing facility in Lancaster, Ohio. The expansion will allow Cirba Solutions to process enough battery-grade critical minerals, such as lithium, nickel and cobalt, to power more than 200,000 new electric vehicles (EVs) per year while creating 150 jobs.

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In September, the company was again selected to enter into an award negotiation with the DOE for up to $200 million under the BIL that it intends to put toward the construction of its flagship LIB processing facility in South Carolina—a 200-acre campus it says is expected to produce battery-grade salts for approximately 500,000 EV batteries per year while creating more than 300 jobs.

In each project, Cirba Solutions aims to demonstrate the results of collaboration between the public and private sectors. In the following interview, edited for clarity and conciseness, Cirba Solutions Manager of Government Affairs Alex Remy discusses the impact of that collaboration.

Recycling Today (RT): Being the first company to receive investment through the BIL, how important has it been for Cirba Solutions to continue to show progress in its Lancaster expansion and set and example of what’s possible when government and the private sector work together?

Alex Remy (AR): Being the first company to receive investment through the BIL, which we are incredibly proud of, has been pivotal in achieving Cirba Solutions’ growth milestones. This recognition not only provides us with financial support to continue our operational footprint expansion, but it reinforces our leadership in the battery recycling and materials recovery industry. Our ongoing progress at our Lancaster lithium-ion processing facility highlights the importance of collaboration with federal agencies, which allows us to successfully scale our operations to continue making advancements and investments in sustainable technologies.

Photo courtesy of Cirba Solutions

In September, Cirba Solutions was selected by the U.S. DOE to receive up to $200 million in round 2 of funding under the BIL for our new lithium-ion processing facility in Columbia, South Carolina. This is another proof point of how private and public partnerships fuel innovation, create domestic jobs and drive economic growth while promoting sustainability.

RT: On the topic of Lancaster, are there any progress updates?

AR: In August, Cirba Solutions welcomed David Crane, the undersecretary for infrastructure at the DOE, and Giulia Siccardo, director of the DOE Office of Manufacturing and Energy Supply Chains (MESC) for a ribbon cutting to celebrate a milestone of increasing the current production capacity by 300 percent. Officials toured our large-scale expansion currently underway in Lancaster to see the progress firsthand. The more-than $400 million invested into the existing lithium-ion processing facility will produce enough battery-grade salts from recycled batteries to power more than 250,000 new EVs annually. This increased capacity will provide the region with something that has not been done at a commercial scale before.

RT: How has funding through legislation such as the BIL accelerated the growth of your company, as well as the battery recycling industry at large? How much of a game-changer has it been since it was enacted, in your view?

AR: The funding from the BIL has been transformative for Cirba Solutions, giving us the opportunity to increase battery recycling capacity across the industry. It supports the automotive sector, fosters a closed-loop supply chain, further advances the clean energy transition, creates generational jobs in communities where Cirba Solutions has operations and contributes to the circular economy. The support of the government is giving North America the opportunity to compete on a global scale related to battery recycling and critical material refinement. This funding is vital to the growth of the U.S. economy, national security and leadership in clean energy.

RT: How receptive has the DOE been to input from companies like yours, and how have they utilized that feedback to better work with the industry?

AR: The DOE has been an exceptional partner and collaborator. They’ve demonstrated a strong commitment to understanding the opportunities of the battery recycling industry. Their support has been instrumental in enabling Cirba Solutions to expand our operational footprint to meet the growing demand of the U.S. battery supply chain.

The DOE plays a critical role in driving investments that secure America’s energy future, and we are honored to be one of those chosen to support this mission.

RT: When you speak to legislators and other government officials, what typically are their concerns and what seems to be their focus? What has been your message to them?

AR: The topic of sourcing critical materials domestically is a real concern today, as it relates to the viability of many industries. Elected and government officials want to strengthen our critical materials access, in turn reducing our reliance on foreign sources and putting the U.S.'s refining capabilities on a global stage.

We have the opportunity to build a domestically sourced supply chain that will positively impact future generations. By focusing on recycling materials like lithium, cobalt and nickel, we can keep valuable resources within North America and reduce the reliance on virgin mining. The largest operating mine in the world is already driving around our roads in the vehicles that we drive. By increasing our capacity, we are putting ourselves in a position to close the gap on creating a closed-loop supply chain and securing the critical minerals needed for future demand.

RT: Do you envision the upcoming election having an impact on government efforts to aid the industry?

AR: It’s difficult to predict the precise outcomes of the election and subsequent legislation. Still, we believe that the clean energy transition and technologies like battery recycling will continue to be a priority and will grow. From what we have seen and heard, strengthening the country’s supply chains, economy and competitiveness has bipartisan support, and battery recycling addresses all of these sectors. We anticipate government efforts to aid the industry will continue.

RT: Along with funding programs, what else can the government do to help support the industry? What should be the focus?

AR: Beyond funding, the government plays a vital role in supporting the industry. They are enabling a circular economy approach by encouraging research and development of aspects impacting battery recycling, incentivizing clean energy jobs, technological innovation and prioritizing public awareness and education about battery recycling.

RT: With batteries of all types already prevalent everywhere we look and more EV batteries reaching their end of life in the near future, how important will it be to accelerate facility and process development to keep these materials in the North American supply chain?

AR: As the number of EVs on the road continues to increase, so will the volume of batteries coming off the roads. We are fortunate in the North American market to have positive EV sales growth this year, and it is predicted to continue trending in this direction. While we’re in the early stages of the electrification transformation, the industry must be prepared to handle the impending surge. As gigafactories come online, we need to be there to recycle their scrap. As batteries come off the roads, we want to reintegrate the critical materials that are extracted from end-of-life batteries by putting the minerals back into the battery supply chain as efficiently as possible to be repurposed into new batteries.

This approach reduces our reliance on foreign sources, mitigates supply chain risks, creates new economic opportunities and lessens environmental impact.