LG Energy Solutions (LGES) has established its first battery recycling joint venture (JV) with Zheijang Huayou Recycling Technologies, Co. (Huayou Recycling), a subsidiary of Huayou Cobalt. The new JV will oversee the construction of two new battery recycling plants in China. This includes a pretreatment facility in Nanjing, where LGES’ battery production facility is located, and a post-processing plant in Quzhou, a strategic location that aims to utilize Huayou Cobalt’s pre-existing infrastructure.
The JV will ensure LGES has a stable supply of waste batteries and battery scraps, which will help the company establish an integrated closed-loop manufacturing system and secure key battery raw materials.
Production is set to begin in late 2024, and battery scrap generated by LGES’ Nanjing facility, as well as waste batteries collected by Huayou Recycling, will be delivered to the JV to produce recycled metals, including nickel, cobalt, and lithium. These metals will be processed and supplied back to the LGES Nanjing plant.
Establishing a closed-loop system for manufacturing batteries is a priority for LGES, and it supports the company's efforts to reuse and recycle end-of-life batteries and manage its generated waste.
