Iondrive Ltd (ASX:ION) has inked a collaboration agreement with German-based PEM and PEM Motion, leaders in battery technology and recycling, aimed at commercialising battery recycling technology in Europe.
Although the agreement with Production Engineering of EMobility Components at RWTH Aachen University (PEM) and PEM Motion GmbH is non-binding, Iondrive considers it a significant step as it formalises a strategic industry partnership in the major target market of Europe.
To use Iondrive technology
This collaboration aims to advance sustainable battery recycling technologies by leveraging PEM’s extensive expertise in battery technology and recycling, along with Iondrive’s innovative Deep Eutectic Solvents (DES) Sustainable Battery Recycling process.
In this way, the agreement underscores the unique value proposition of Iondrive’s sustainable battery recycling process.
It aligns with PEM’s strategy to establish a consortium and the necessary funding to address challenges in complying with the new Batteries Regulation, part of the European Green Deal, which includes targets for recycling efficiency, material recovery and recycled content, being gradually introduced from 2025 onwards.
“Feather in the cap”
Iondrive CEO Dr Ebbe Dommisse said: "This development is a major feather in the cap for an Australian technology company to be invited to participate in a European consortium of strategic industry partners to establish a battery recycling 'value circle'.
"Partnering with PEM and PEM Motion, leaders in battery technology and recycling, greatly enhances our ability to navigate the commercialisation pathway for our advanced recycling technologies.
"By forming a consortium, we are looking to strategically position to pool critical resources, expertise and infrastructure, accelerating the development of commercially viable battery recycling solutions.
"This collaborative approach is essential for engaging key industry partners, facilitating compliance with stringent European regulatory standards, and significantly boosting our appeal for investment from Industry Participants.
"Our alignment with PEM underscores our commitment to supporting Europe’s sustainability goals and marks a significant commercial milestone, establishing us as an early mover in the European market, while advancing innovative solutions within the circular economy."
The Battery Recycling Value Chain.
To form consortium
The consortium is intended to comprise strategic partners from the entire battery recycling value chain, including automotive OEMs, to validate at scale the performance of battery cells made from recycled metals.
Over the next three months, PEM and Iondrive will prepare a detailed project plan and investment case for the establishment of a pilot plant based on Iondrive’s recycling technology, which utilises Deep Eutectic Solvents (DES) and benign, biodegradable organic solvents in a non-toxic, closed-loop process.
This eco-friendly method avoids toxic mineral acid leaching, ensuring a minimal environmental footprint with a pilot plant likely to be located at PEM’s facilities in Germany.
The work will include preparation of applications for relevant government grants available in the EU for the renewable energy sector and environmental/recycling initiatives. It is expected that these outputs will be completed within the next three months.
Primary objective of the collaboration is to solve a pressing industry need - the establishment of a robust and scalable process for recycling lithium-ion batteries within the EU, with a focus on converting recycled materials into high-quality precursors for battery active materials for the expanding EV market.
“A significant stride”
“We are thrilled to embark on this collaboration with Iondrive and PEM Motion," PEM RWTH Aachen University said.
"This partnership represents a significant stride towards advancing sustainable battery recycling technologies in Europe.
"By leveraging our research capabilities and industry experience, we aim to address the critical challenges posed by the new Batteries Regulation under the European Green Deal.
"Together, we are committed to developing innovative solutions that not only enhance recycling efficiency but also support Europe’s transition towards a circular economy. "This initiative underscores our dedication to fostering impactful industry collaborations that drive technological advancements and sustainability.”
PEM, PEM Motion and Iondrive will collaborate to bring together a consortium of industry participants representing the entire battery recycling value chain from the collection of end-of-life batteries to the production of battery active materials.
The consortium will aim to validate technologies of all the processes in the battery recycling value chain at pilot plant scale, including ensuring that the resultant battery cells manufactured from recycled metals meet the performance standards of those produced from virgin materials.
To involve auto OEMs
This is expected to involve the qualification processes of leading automotive OEMs. PEM and PEM Motion will also play a crucial role in optimising the recycling process and securing necessary funding.
The parties will pursue financial backing from private and public investors, with a particular focus on attracting strategic investments from industry partners.
PEM Motion said: “We are excited to join forces with Iondrive and PEM RWTH Aachen University in this initiative.
"Our combined expertise in battery technology and industrialisation will be instrumental in forming a robust consortium that addresses the pressing need for sustainable battery recycling solutions.
"This collaboration aligns perfectly with our mission to drive innovation in e-mobility and support the development of environmentally friendly technologies.
"We look forward to leveraging our extensive network and experience, ultimately contributing to Europe's sustainability goals.”