Japan Advances Battery Recycling to Minimize Rare Metal Loss
Japan’s largest thermal power company, JERA, is set to launch a project aimed at recovering rare metals from used electric vehicle (EV) batteries in an effort to curb the outflow of critical resources. This breakthrough technology has achieved a remarkable recovery rate of up to 90%, with plans to establish domestic recycling facilities. Currently, about 80% of Japan’s second-hand electric vehicles are exported overseas, resulting in the loss of significant amounts of rare metals. Developing a resource recycling system within Japan could enhance the nation’s economic security.
The Connection Between EV Batteries and Rare Metals
Lithium-ion batteries, which power electric vehicles, require substantial quantities of rare metals such as cobalt and nickel. It is estimated that each EV consumes around 200 kilograms of rare metals—equivalent to the resources needed for thousands of smartphones. Due to their high rare metal content, used EV batteries are often regarded as “urban mines,” offering vast potential for resource recovery.
Breakthrough in High Recovery Rate Technology
Previously, attempts to recover rare metals from used batteries involved high-temperature smelting techniques, but the heat would degrade materials, resulting in a recovery rate of only about 60%. JERA, in collaboration with Tokyo Electric Power Company Holdings and Chubu Electric Power, has developed a new method that uses shock waves generated under high-pressure water to separate and recover up to 90% of rare metals from batteries without the need for heat treatment. This technique also cuts carbon emissions by 50% during the recycling process, as it avoids high-temperature procedures. JERA plans to establish a dedicated factory in Japan by the early 2030s and aims to expand this technology to the European market, where battery reuse regulations are more stringent.
Growing Importance of Rare Metal Recovery
Since the introduction of EVs in Japan around 2010, the number of discarded batteries has steadily increased. Currently, approximately 20,000 EV batteries reach the end of their lifecycle each year, a number expected to rise to 150,000 by 2030—a sevenfold increase. As the number of EVs continues to grow, the demand for rare metal recovery and recycling becomes more urgent.
Sumitomo Metal Mining plans to launch rare metal recovery facilities at its two factories in Ehime Prefecture by 2026, while other companies are also entering the battery recycling space, driving further growth in this emerging industry.
Industry Innovations Boosting Recovery Rates
In addition to JERA’s advancements, other companies are also innovating in rare metal recovery technologies. JX Nippon Mining & Metals has improved upon traditional high-temperature processing, aiming to recover cobalt and nickel from 30,000 tons of used batteries annually by 2035, with plans to increase the recovery rate to 90%. Toray Industries is developing methods to liquefy battery materials through heat or acid treatment, using specialized membrane materials to recover over 80% of lithium.
With global decarbonization efforts accelerating, the demand for energy storage batteries is soaring. By 2030, Japan is projected to require approximately 100,000 tons of lithium and 20,000 tons of cobalt annually. Given Japan’s near-total reliance on imported rare metals, recycling technology will be key to increasing self-sufficiency. If “urban mines” can be fully utilized, Japan could meet its cobalt demand for the next decade through recycling alone.
Market Challenges for Rare Metal Recovery in Japan
According to the Japan Research Institute, the market for reusing and recycling second-hand batteries in Japan is expected to grow to approximately 2.4 trillion yen by 2050. However, slow progress in establishing a legal framework for recycling and reuse could hinder full market development. The Institute warns that if current regulations are not adapted swiftly, Japan risks missing out on significant market opportunities.
Intensifying Global Competition in Rare Metal Recycling
Europe and the United States have already taken the lead in rare metal recycling. The European Union strengthened regulations in 2023, setting targets for the reuse of materials from second-hand EV batteries. In the U.S., new policies are being developed that require EV batteries benefiting from tax credits to contain a certain percentage of critical minerals sourced domestically or from free trade agreement (FTA) partners.
China, which dominates over half of the global market for rare metal extraction and refining, is also tightening control over strategic resource exports. For countries reliant on rare metal imports, recycling technologies are becoming increasingly important.
By advancing rare metal recovery technologies, Japan aims to build a resource recycling system that secures its place in the global transition to renewable energy. For more updates on Japan, stay tuned to our site, where we provide expert consulting and support to help you succeed in the Japanese market.
