As more of the world becomes dependent upon lithium ion batteries to power electric vehicles and battery storage systems for the electric grid, Worcester energy technology company Battery Resourcers has developed ways to recycle spent batteries and avoid the costs and environmental impact of mining for lithium and other battery materials.
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As more of the world becomes dependent upon lithium ion batteries to power electric vehicles and battery storage systems for the electric grid, Worcester energy technology company Battery Resourcers has developed ways to recycle spent batteries and avoid the costs and environmental impact of mining for lithium and other battery materials. Mike O’Kronley, who joined the company’s board in 2017 and became CEO in March 2020, spoke with WBJ about the company’s growth plans.
You’ve raised quite a bit of money this year.
So far, we have received $95 million in investment funding, which we have been using to expand our commercial operations. In August, we announced our expansion into Westborough and Novi, Mich. In the coming months, we will announce a fourth site in the U.S., and that will be our largest commercial facility.
Tell me more about this technology.
The origin of the company was in 2011 when Worcester Polytechnic Institute professor Yan Wang started doing research on how to recycle batteries. At the time, there was very little research being done on how to recycle batteries. That led to the creation of the company in 2015.
Former WPI professor Eric Gratz, who is now our chief technology officer, joined the company early on in 2016. They developed ways to turn spent batteries into battery materials.
Lithium ion batteries were always the focus. We take any lithium and nickel manganese cobalt cathode materials, which is the most expensive part of the battery. We focus on the cathode material and all the valuable metals. We then turn that into new cathode material, by taking it down to the molecular level.
We recycle 100% of the battery. Everything goes to another use or another source. These are all sold to other industries.
What is the market potential?
The potential is enormous.
When you look at the transformation happening in the automotive industry, and the transition from internal combustion engines to electric vehicles, they all need very large batteries.
The automotive industry is transforming, as is the electric storage industry in the electric grid industry. Batteries are paired with solar and wind power generation, and then that is replacing coal plants and natural gas electricity-generating plants.
In the next five years, our revenues will be well north of $1 billion. The market is so big, and there is so much opportunity. The demand for recycled materials is very, very high.
Where are the markets?
The largest demand globally for electric vehicles and electric grid storage is in China, but that is a relatively mature market.
We will be expanding in North America and in Europe. Europe and North America are playing catch-up to China, and we have major opportunities in both places.
What advantages do you have over other battery material suppliers?
We have an 87% lower carbon footprint than companies making the cathode material from mined sources. We produce materials that go right into new materials. Rather than mining for these raw materials, we are essentially urban mining and getting all our materials from spent batteries.
By recycling, it enables us to have a dramatically lower carbon footprint. As society in general becomes more aware of its carbon footprint, companies like Battery Resourcers will have an advantage, since we are more environmentally friendly than our competitors.
Do other companies offer battery recycling?
Our competition is startups similar to Battery Resourcers, but they don’t have the technology we have. No other recycling company can take a spent battery and produce new cathode material.
We are essentially posed to take advantage of this dramatically growing market, by taking advantage of our advanced technology from research started at WPI. Even as we grow to more places around the world, we are very proud of our roots in Worcester.
This interview was conducted and edited for length and clarity by Brad, Kane, WBJ editor.
