Automotive original equipment manufacturers are integrating vertical supply chains backward into scrap recovery and hydrometallurgical battery recycling.
Supply Chain Security
Direct recycling partnerships allow OEMs to recover up to 95% of nickel, cobalt, and lithium from manufacturing scrap and end-of-life battery packs. This mitigates exposure to spot market price volatility and geopolitical supply disruptions.
Regulatory Compliance Requirements
Mandatory recycled content quotas in major jurisdictions require OEMs to establish closed-loop material flows. Capital expenditures dedicated to battery recycling infrastructure are projected to exceed $14 billion globally by 2028.