[Osaka, Japan] – March 31, 2025 – Panasonic Energy Co., Ltd., a Panasonic Group Company, today announced a landmark collaboration with Sumitomo Metal Mining Co., Ltd. to establish a closed-loop recycling system for nickel used in lithium-ion battery cathode materials. This pioneering initiative marks the first “battery-to-battery” recycling program within the automotive battery production sector, solidifying Panasonic Energy’s commitment to a circular economy and sustainable resource management. Following the existing partnership with Redwood Materials Inc. in the United States, this collaboration represents a significant milestone in accelerating recycling efforts within Japan.
The program focuses on recycling nickel extracted from battery scrap generated at Panasonic Energy’s factory in Japan. This recovered nickel will be directly reintegrated into the company’s lithium-ion batteries, creating a closed-loop system that minimizes waste and maximizes resource utilization.
The growing demand for electric vehicles (EVs) has created a pressing need for sustainable battery recycling solutions. As the volume of end-of-life automotive batteries is projected to peak around 2030, securing a reliable supply of critical materials like nickel, cobalt, and lithium becomes paramount. These materials, refined to a higher degree than those used in other applications, are increasingly scarce, making efficient recycling essential for the continued growth of the EV market.
Sumitomo Metal Mining, a leading Japanese company specializing in non-ferrous metal smelting and refining, brings extensive expertise to the partnership. Since 2017, the company has been actively recovering and recycling copper and nickel from end-of-life lithium-ion batteries and battery scrap, repurposing them as raw materials for cathode production. This new collaboration leverages Sumitomo Metal Mining’s established capabilities to create a robust and efficient recycling process.
Under the agreement, battery scrap from Panasonic Energy’s Suminoe Factory in Osaka will be processed at Sumitomo Metal Mining’s Toyo Smelter & Refinery and its Niihama Nickel Refinery in Ehime prefecture. This process will extract nickel sulfate, which will then be utilized in the manufacturing of cathode materials. These cathode materials will subsequently be incorporated into Panasonic Energy’s lithium-ion batteries, completing the closed-loop cycle.
The initial focus of the initiative is on nickel recycling, but plans are already underway to expand the program beyond 2026 to include other key cathode materials, such as lithium and cobalt. This phased approach ensures a comprehensive and sustainable recycling solution for the entire battery composition.
Panasonic Energy has set an ambitious target of achieving 20% recycled cathode material content in its automotive batteries by 2030. This commitment underscores the company’s dedication to minimizing environmental impact and promoting resource efficiency. Furthermore, the utilization of “urban mining” for resource recovery significantly reduces CO₂ emissions compared to conventional mining practices, contributing to a lower carbon footprint for the entire EV supply chain.
This initiative is a cornerstone of Panasonic Energy’s broader sustainability strategy, directly supporting its goal of halving its carbon footprint by fiscal 2031 compared to fiscal 2022 levels. The company recognizes that a circular economy is not only environmentally responsible but also economically advantageous, fostering resilience and reducing reliance on volatile commodity markets.
“Building a sustainable recycling scheme for end-of-life lithium-ion batteries is crucial for the future expansion of EVs,” stated Kazuo Tadanobu, CEO of Panasonic Energy. “We are advancing initiatives in both Japan and the U.S., and through the partnership with Sumitomo Metal Mining, with its deep expertise in non-ferrous metal recycling, we are accelerating our efforts toward realizing a circular economy. This collaboration supports our mission of fostering a sustainable society.”
The partnership represents a significant step towards establishing a more resilient and sustainable EV battery supply chain. By closing the loop on battery materials, Panasonic Energy and Sumitomo Metal Mining are contributing to a future where resources are used more efficiently, waste is minimized, and the environmental impact of electric vehicles is significantly reduced. The collaboration also serves as a model for other companies in the battery industry, demonstrating the potential of circular economy principles to drive innovation and create long-term value. The companies are committed to continuous improvement and exploring new technologies to further enhance the efficiency and effectiveness of the recycling process.
