Battery Recycling Facility to Produce Critical Materials for North American Battery Supply Chain

Heritage Battery Recycling, an affiliate of Cirba Solutions, the largest and most comprehensive cross-chemistry battery management and materials processor in the industry, today announced plans to construct a lithium-ion battery recycling facility in Eloy, Arizona. Battery recycling is helping close the critical materials supply gap needed to support the increased electric vehicle (EV) and lithium-ion battery manufacturing in the US, while also increasing access to recycled content for batteries. This facility complements Cirba Solutions’ existing presence in Arizona and strategically positions it to boost collection and processing regionally for North America’s West Coast end-of-life collection and EV battery manufacturing facilities.

“The lithium-ion battery market is expected to grow exponentially over the next several years, with a projected market size approaching $25 billion by 2028,” said David Klanecky, President and CEO, Cirba Solutions. “Federal incentives for the purchase of EVs, requirements for domestic EV battery manufacturing included in the Inflation Reduction Act, and state requirements like California’s recent move to require all new vehicles sold in the state to be zero-emission by 2035, ensure that lithium-ion battery recycling will be critical for auto-manufacturers to meet demand and have a sustainable future.”

The Eloy facility will process lithium-ion end-of-life batteries and battery manufacturing scrap, with additional services including disassembly, sorting, warehousing, and diagnostic testing. The product from the Eloy facility will serve as a raw material feedstock to provide battery grade salts for new cathode and battery manufacturing, such as Nickel, Cobalt, Manganese and Lithium.

“This new site expands our footprint and offerings in Arizona, while complimenting the phenomenal services we already provide through our Mesa location,” Klanecky said.

“This new EV battery recycling facility bolsters Arizona’s vibrant battery and electric vehicle supply chain and furthers Arizona’s reputation as an epicenter for lithium batteries,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “The innovative facility will produce battery materials to support the continued growth of electric vehicle manufacturers across Arizona and the United States. Arizona continues to be a magnet for technology and advanced industries.”

Located between Phoenix and Tucson in Pinal County, an existing building will be expanded to 75,000 square feet. The construction phase is estimated to support 75 workers, in addition to an estimated 110 permanent employees. This facility is expected to process enough battery material to support 50,000 EVs annually and is expected to be in operation mid-2023.

“Eloy is pleased to welcome Cirba Solutions to our community,” said Eloy Mayor Micah Powell. “The investment and new jobs fit nicely into Eloy’s ongoing plan to attract quality employers to our community. As has been said, a rising tide raises all boats and in economic development that means supplier and support industries such as Cirba Solutions.”

The pressure on global and domestic lithium mining capacity will continue to grow with EV and other electronics demand, making EV battery recycling increasingly important to meet the growing market in an environmentally responsible manner. By 2050, recycled minerals will account for nearly 50% of cobalt, 25% of lithium, and 40% of nickel produced in U.S. EV batteries, according to Resources, Conservation and Recycling.

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