Panasonic Energy Co., a Panasonic Group Company, announced the launch of a recycling initiative for nickel used in lithium-ion battery cathode materials, in collaboration with Sumitomo Metal Mining Co., Ltd., a leading Japanese non-ferrous metal smelting and refining, and cathode material manufacturer. This marks the first closed-loop recycling initiative—where end-of-life products are reprocessed into raw materials and reused in the same type of product— in the production of automotive batteries by Panasonic Energy. Following the ongoing partnership cemented with Redwood Materials Inc. in the United States in 2022, this collaboration represents a key milestone in the acceleration of recycling efforts in Japan.
Under the scheme, Sumitomo Metal Mining will recycle nickel from battery scrap generated at Panasonic Energy’s factory in Japan. This nickel will then be reused as cathode materials in the company’s lithium-ion batteries. The initiative establishes a closed-loop “battery-to-battery” recycling process boosting progress toward a circular economy.
Since 2017, Sumitomo Metal Mining has been operating a business recovering and recycling copper and nickel from end-of-life lithium-ion batteries and battery scrap, repurposing them as raw materials for cathode production.Through this new collaboration, battery scrap from Panasonic Energy’s Suminoe Factory in Osaka will be processed and partly recovered as nickel sulfate at Sumitomo Metal Mining’s Toyo Smelter & Refinery, and at its Niihama Nickel Refinery in Ehime prefecture. The resulting nickel sulfate will be utilized in the manufacturing of cathode materials, which will subsequently be recycled in Panasonic Energy’s lithium-ion batteries.
The initiative will initially focus on nickel recycling, with plans to extend the program beyond 2026 to include other key cathode materials, such as lithium and cobalt. Panasonic Energy has set the target of achieving 20% recycled cathode material content in its automotive batteries by 2027. Furthermore, the use of urban mining for resource recovery significantly reduces CO₂ emissions compared to conventional mining practices. The initiative is a key part of Panasonic Energy’s broader sustainability strategy, supporting its goal of halving its carbon footprint by fiscal 2031 compared to fiscal 2022 levels.
With the growing adoption of electric vehicles (EVs), the volume of automotive batteries reaching end-of-life isexpected to peak in around 2030. Rare metals such as nickel, cobalt, and lithium, which are used in lithium-ion batteries, are more highly refined compared to those used in other applications, making them even scarcer. To ensure the sustainable growth of the EV market, establishing an efficient battery recycling system is crucial.