Iondrive Ltd (ASX:ION) has welcomed the results of a comprehensive market research study by Rho Motion that highlighted “compelling” market dynamics for battery recycling and ION’s emerging role within the industry.
This study underscores the critical need for sustainable end-of-life solutions for batteries at a time when the global push for electric vehicles, and the minerals they are made from, is intensifying.
The report specifically highlights the expected expansion rate of the battery recycling industry, with available feedstock (black mass) forecast to grow at a compounding annual growth rate (CAGR) of 25% per annum, reaching 2 million tonnes by 2030, and continuing to grow at 19% CAGR for the next decade beyond.
De-risking battery recycling tech
“I am exceptionally pleased with the findings from the Rho Motion study, which not only validate our strategic position but also highlight the growing demand for sustainable battery recycling solutions, especially in Europe,” Iondrive CEO Ebbe Dommisse said.
“Being an early mover in this space, our focus is on the ongoing process of technological de-risking, which is currently underway with the commencement of bench trials in Adelaide and Perth.
“These trials mark the beginning of our journey towards de-risking our technology. Alongside, our commercial strategies are being refined, guided by the study's insights, to align with market needs as a key aspect of execution de-risking.
“The dedication and expertise of our team in Adelaide, complemented by the strategic oversight of our experienced board, are key to advancing our innovative recycling process.
“These collective efforts are critical milestones as we progress towards a pre-feasibility study, ensuring we are well-placed to meet the industry's future demands.”
Iondrive has already begun large-scale bench trials for its battery recycling technology at the University of Adelaide, which are expected to be complete in April.
At the same time, the company is undertaking independent verification of its bench trails at Independent Metallurgical Operations in Perth, which will provide the data necessary for a pilot plant design.
Advantageous positioning
Apart from the growing need for battery recycling technologies globally, Rho Motion’s report points out several other advantages for Iondrive’s particular offering, including:
- Compelling market fundamentals, taking into account environmental regulations, supply chain security concerns for critical minerals and the growing demand for electric vehicles.
- Potential for premium prices for ‘green’ sustainable recycled materials, especially in the context of EU legislation.
- Iondrive’s recycling method is more environmentally friendly than current practices, needing neither smelting or acid hydrometallurgical processes which collectively have a number of environmental issues.
- The manufacturing industry’s growing desire to buy directly from the source from raw material suppliers to reduce their environmental footprint.
- Iondrive’s position as an early mover with a novel, environmentally friendly process that does not sacrifice recovery rates and selectivity in the extraction of individual critical minerals.
Iondrive says the bench trials, Rho Motion’s study and the company’s own execution strategy serve as crucial steps in producing a pre-feasibility study (PFS), which is expected to be complete in June.
The PFS will aim to reduce the technical, commercial and execution risks of the project ahead of the planned pilot plant construction in the 2025 financial year.
ION is assessing multiple potential business models with prospective partners, including licensing and toll manufacturing, to strengthen the execution strategy for its battery recycling technology.
Securing a supply of black mass battery feedstock and establishing strong offtake agreements will be a critical element of that execution strategy.