Iondrive and PEM Collaborate to Revolutionize Battery Recycling in Europe
ION (ION) Share Update August 2024 Sunday 11th
Iondrive and PEM Partner to Advance Battery Recycling in Europe
Iondrive Limited (ASX: ION) has announced a significant collaboration with the Chair of Production Engineering of E-Mobility Components at RWTH Aachen University (PEM) and PEM Motion GmbH. This partnership aims to commercialize Iondrive’s innovative battery recycling technology across Europe.
Instant Summary:
- Iondrive signs non-binding collaboration agreement with PEM and PEM Motion.
- Focus on addressing new European Batteries Regulation under the Green Deal.
- Consortium to include strategic partners from the entire battery recycling value chain.
- Detailed project plan and investment case to be prepared over the next 3 months.
- Pilot plant to be established based on Iondrive’s recycling technology.
Collaboration Agreement Details
Iondrive Limited has signed a collaboration agreement with PEM and PEM Motion to advance sustainable battery recycling technologies. This partnership leverages PEM’s extensive expertise in battery technology and recycling, along with Iondrive’s innovative Deep Eutectic Solvents (DES) Sustainable Battery Recycling process.
The agreement, although non-binding, formalizes a strategic industry partnership in Europe, a major target market for Iondrive. This collaboration underscores the unique value proposition of Iondrive’s sustainable battery recycling process.
Consortium Formation
PEM aims to establish a consortium and secure necessary funding to comply with the new Batteries Regulation, part of the European Green Deal. This regulation includes targets for recycling efficiency, material recovery, and recycled content, to be gradually introduced from 2025 onwards.
The consortium will include 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.
Technology and Market Context
Iondrive’s DES battery recycling process utilizes 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.
Currently, most battery recycling processes involve pre-treating and shredding waste batteries to create a substance known as black mass. This material, containing critical minerals like lithium, cobalt, nickel, and manganese, is typically exported to Asia for further processing. Iondrive’s technology aims to convert these recovered minerals into battery-grade materials, providing a sustainable solution to the global battery recycling challenge.
Regulatory Impact
The new European Batteries Regulation, part of the European Green Deal, creates strong market dynamics for the adoption of environmentally sustainable recycling technology. The regulation mandates high levels of recovery for critical raw materials and aims to minimize environmental impacts and reduce dependency on raw material imports.
By forming a consortium, Iondrive and PEM are strategically positioning to pool resources, expertise, and infrastructure, accelerating the development of commercially viable battery recycling solutions. This collaborative approach is essential for engaging key industry partners and facilitating compliance with stringent European regulatory standards.
This collaboration is a significant milestone for Iondrive, enhancing its ability to navigate the commercialisation pathway for its advanced recycling technologies. The partnership with PEM and PEM Motion is expected to boost Iondrive’s appeal for investment from industry participants and support Europe’s sustainability goals.
Investor Reaction:
Analysts are likely to view this collaboration positively, as it positions Iondrive as an early mover in the European market for sustainable battery recycling. The strategic partnership and potential for securing significant funding are expected to bolster investor confidence.
Conclusion:
Investors should monitor the progress of the consortium formation and the development of the pilot plant. This collaboration represents a significant commercial milestone for Iondrive, potentially driving long-term growth and sustainability in the battery recycling sector.