Development of Efficient and Scalable Direct Recycling Technology for Lithium-Ion Batteries

The Regents of California, San Diego

Recipient

La Jolla, CA

Recipient Location

38th

Senate District

77th

Assembly District

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$1,087,183

Amount Spent

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Active

Project Status

Project Update

This project concluded in September 2025, and the final report was published. UCSD successfully advanced its direct recycling technology despite the challenges posed by the complex composition and structure of lithium-ion batteries. A robust methodology was developed for the deactivation, dismantling, and separation of spent battery components, emphasizing safety and energy efficiency. The process enabled the recovery yield of over 95% of cathode and anode active materials, with a froth flotation technique yielding a cathode black mass of over 99% purity suitable for direct regeneration. The direct regeneration process developed and patented as Purification and Regeneration Integrated Materials Engineering (PRIME) further improved efficiency by integrating impurity removal into the workflow, producing high-quality cathode materials matching the performance of commercial counterparts.

The project team concluded the laboratory-scale testing included battery sorting, materials separation, and hydrothermal regeneration of cathodes and graphite anodes, producing regenerated materials with electrochemical performance matching that of new materials. The team successfully processed 1-kg batches of recycled materials, which were validated through structural and compositional analyses and rigorous cell testing. The team also successfully scaled batch sizes to 5 kilograms under industry-relevant conditions, using flotation cells, reactors, and furnaces, advancing the technology to demonstration in a real-world operational environment. Closed-loop modeling highlighted the environmental and economic benefits of direct recycling over traditional pyrometallurgical and hydrometallurgical methods. Specifically, the project team demonstrated that greenhouse gas emissions from the PRIME process are reduced by 55% compared with conventional recycling methods, primarily due to minimal chemical inputs. Lastly, the project team was able to fabricate cells using regenerated materials from UCSD's direct recycling process for performance validation.

The Issue

Lithium-Ion Batteries (LIBs) are playing a central role in transitioning California's electricity and transportation sectors to becoming zero emission over the coming decades. The combined retirements of grid-connected stationary storage and plug-in electric vehicles (PEV) will reach the end of the warrantied service life in growing volumes during this time. Despite containing valuable and critical materials, LIBs have limited established economic pathways for collection, evaluation, reuse, and recycling when they reach the end of life. LIBs have varying complex structures, compositions, and designs optimized across competing performance criteria with different manufacturer-specific proprietary implementations. This heterogeneity makes the development of scalable processes for recycling challenging. Technology advancements can help transform used LIBs from a liability to a valuable resource.

Project Innovation

UCSD has developed an efficient and scalable direct recycling process for lithium-ion batteries (LIB) that is flexible across different cathode chemistries and applicable to stationary storage systems and PEV batteries at end of life. The project demonstrated advancements toward an economical and high-value LIB recycling process via efficient sorting and separation of spent batteries, safe and low-cost direct regeneration methods, high-purity and high-quality returned materials with the equivalent performance to virgin materials, low carbon footprint, and increased profitability and scalability, leading to viable pathways for rapid scale-up and successful commercialization.

Project Goals

Achieve 95% recovery yield of various LIB cathodes and anode materials from spent EV and stationary storage batteries.
Achieve >99% purity of cathodes and graphite anode after regeneration process, and demonstrate >99% capacity retention.
Demonstrate the process in a pilot operation scale of 5 kg/day and a process time of 1 day/cycle.
Demonstrate energy consumption of <3 kWh/kg cathode and <2 kWh/kg anode.
Achieve operational costs of <$5/kg for NMC and NCA cathodes and <$2/kg for LMO, LFP, and graphite anode.

Project Benefits

The project team has built unique strengths in this development from previous research projects funded by CEC and federal agencies. With the support of the EPIC program, the team will further improve the efficiency of unit operations, leading to future commercialization efforts to establish direct recycling capacity in California. As California's clean energy goals continue driving adoption of LIBs for stationary storage and PEV applications, this project will help overcome barriers to enable sustainable recycling pathways for LIBs when they reach end of life.

Lower Costs

Affordability

As the cost of materials represents 50-70% of the total battery cost in stationary ESS and PEVs, successful recycling and regeneration of spent LIB using low-cost processes will have the potential to significantly reduce overall battery costs compared to primary battery production.

Greater Reliability

Reliability

The low-cost recycling and regeneration processes developed under this project will have the potential to reduce battery costs and supplement conventional supply chains to build out energy storage capacity needed to support grid reliability.

Economic Development

Economic Development

New batteries for stationary storage or PEVs can be manufactured domestically with recycled materials, providing opportunities for economic development.

Environmental & Public Health

Environmental Sustainability

Developing and scaling up advanced direct regeneration technologies to recycle spent LIBs enables recapturing of valuable materials with lower environmental impacts compared to conventional recycling processes, reduces dependence on mined materials, and supports economic deployment of energy storage to support renewable energy and climate goals.

Key Project Members

Project Member

Zheng Chen

Associate Professor
UC San Diego

Subrecipients

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American Lithium Energy Corp.

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Smartville, Inc.

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iQ International AG

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Match Partners

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American Lithium Energy Corp.

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Smartville, Inc.

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iQ International AG

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UC San Diego Sustainable Power and Energy Center

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UC San Diego- Jacobs School of Engineering

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UC San Diego- Center for Energy Research

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UC San Diego- Department of NanoEngineering

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