Technology Minerals PLC (LSE:TM1), the pioneering UK company that aims to create a sustainable supply circle for battery metals, said commissioning has begun on the country's first large-scale lithium-ion battery recycling plant.
The plant, owned 48.25% by Technology Minerals and run by the Recyclus Group, is located in Wolverhampton, West Midlands.
Throughout this phase, the plant's operations and emissions will be monitored. Provided emissions stay within approved thresholds, the plant's processing hours will gradually increase until it reaches full, continuous operation.
The initial batch of end-of-life lithium-ion batteries to be processed will yield black mass, a material rich in crucial battery metals that can be resold into the battery supply chain.
Recyclus expects to earn revenue from both the gate fees for the collection and storage of lithium-ion batteries and the sale of the produced black mass.
In April, Recyclus obtained an Environment Agency permit, enabling the company to store up to 140 cubic metres (approximately 100 tonnes) of lithium-ion batteries daily and process up to 22,000 tonnes annually.
The company aims to process 8,300 tonnes in the first year, operating a single labour shift during the standard working week.
However, this capacity could be expanded to the permitted 22,000 tonnes by adding extra shifts. In line with its growth plans, Recyclus intends to construct four additional lithium-ion recycling plants across the UK.
A recent study by McKinsey's Battery Insights team predicts the lithium-ion battery supply chain, which includes mining and recycling, could expand over 30% annually from 2022 to 2030. By 2030, it could reach a market value of over US$400bn and a size of 4.7 terawatt-hours.
"With the ongoing global shift towards electrification, the accumulation of discarded batteries poses a significant challenge, underscoring the need for recycling initiatives such as our Wolverhampton plant," said Technology Minerals chairman Robin Brundle.
"By implementing advanced recycling solutions, we are committed to addressing this burgeoning issue and contributing to the sustainable evolution of the global economy."