Canadian technology in recycling end-of-life lithium-ion batteries continues to make headlines, with Hyundai the latest OEM to partner with a recycler while growing its electric model offerings

Hyundai Canada and Lithion Recycling, a Quebec-based battery recycler, yesterday announced a service agreement to increase the car manufacturer’s sustainable production cycle by implementing a recovery and recycle program for their electric vehicle batteries.

Lithion — which hails from Montreal — is one of the leaders in Canada’s second-life battery space, claiming their process is able to recover up to 95 per cent of spent battery materials, which can then be used in new batteries. Industry estimates peg that by 2040 over two million lithium-ion batteries will need to be recycled in the United States alone.

“The most important vision we have is 100 per cent electric by 2040. One thing that is clear is that we need a recycling program,” says Don Romano, president and CEO of Hyundai Canada, in an interview with Electric Autonomy Canada. “It’s not a matter of if, but when. Eventually every vehicle on the road will be electric and in another 10 years we are going to need a lot of recycling.”

“Eventually every vehicle on the road will be electric and in another 10 years we are going to need a lot of recycling.”

Don Romano, President and CEO, Hyundai Canada

Pilot program spinoff

The agreement with Hyundai Canada spun out of a pilot program Lithion is hosting to test and scale its recovery technology. Hyundai Canada will supply used batteries to Lithion as it prepares to move out of testing with the opening of its new processing and recycling facility in 2022. Hyundai will, in turn, benefit from investing early in developing their closed loop system.

“This service agreement will validate an economic and innovative technology that considerably reduces the carbon footprint compared to incumbent technologies and mining,” said Benoît Couture, president and CEO of Lithion in a company press release. “This type of partnership paves the way to the collaborative business model of the future, enabling safe battery disposal and closed loop recovery of critical minerals and metals used in lithium-ion batteries, which are needed to decarbonize transportation.”

For comparison, the metal and plastic parts of combustion vehicles are able to be recycled over 80 per cent and the infrastructure and facilities able to reclaim the recyclable components are well established.

Recycler demand growing

Lithion is one of several Canadian battery recyclers pioneering the end-of-life battery space in anticipation of the ZEV sector’s recycling needs. Others include Li-Cycle in Mississauga, Ont., American Manganese Inc in Surrey, B.C., and Retriev Technologies in Trail, B.C. With the rising adoption of electric vehicles worldwide, suddenly the demand for their services is booming and the trend for partnerships is growing.

“We’re in the environmental business, we want to recycle these batteries.”

Michel Poirier, Director of Customer Experience and Aftersales, Hyundai Auto Canada

“Lithion had a good vision for the future,” says Michel Poirier, director of customer experience and aftersales at Hyundai, in an interview with Electric Autonomy Canada. “We’re in the environmental business, we want to recycle these batteries. Our plan in the medium term is to actually have plants that are a reasonable size near where the consumption of the batteries are. It reduces the footprint of having to travel or having to move all these batteries around the country.”

The high-voltage batteries Lithion will recover come from Hyundai’s hybrid, plug-in hybrid and pure electric vehicles, but it’s unclear what amount the supply will be, ultimately.

“It’s currently in its infancy. We don’t have a lot of batteries that have reached replacement or end of life, but we definitely wanted to lay the groundwork and be ready,” says Poirier. “That’s how we started the discussions with Lithion to see if we could have a longer-term relationship.”

Hyundai Canada is the first OEM to finalize a service agreement with Lithion, but it’s not the first time the Canadian cleantech space has seen this type of deal. In January, New Flyer Industries completed a battery recycling pilot with Li-Cycle to recover and recycle over 3,200 pounds of lithium-ion batteries. It’s not been announced yet if there will be a longer-term arrangement between the two companies.

Hyundai making a splash in the Canadian market

In addition to Hyundai Canada’s battery recycling plans the company announced earlier this year a new mid-sized electric SUV passenger vehicle — the IONIQ 5. The launch garnered significant attention, with consumers hungry for a greater selection and supply of mid-sized electric SUVs. The IONIQ 5 will be available in Canada this fall.

“Hyundai corporate-wide has some very ambitious goals to electrify over the next five years. We know it’s an important part of our future business,” says Poirier.

And as for the potential of the battery recycling relationship with Lithion, Poirier sees a sunny future full of opportunity.

“Going forward we are pretty bullish and pretty optimistic,” he says. “Especially with the opening of Lithion’s new facility. It’s an agreement that’s based around growth and future opportunities.”