Japan has launched an industrial-scale initiative to recover critical metals from end-of-life electric vehicle (EV) batteries, as part of a broader strategy to enhance resource security and reduce dependence on imported raw materials. A facility in Okayama Prefecture is now operating at 850°C to melt and separate lithium, nickel, and cobalt from spent batteries, enabling their reuse in new battery production.
High-Temperature Extraction Process
The Okayama plant employs pyrometallurgical technology to process discarded EV batteries, using high-temperature furnaces to extract valuable metals. Industry representative Katsushi Murashige highlighted the efficiency of this approach, noting that lithium concentrations in used lithium-ion batteries are up to 10 times higher than in mined ore. This makes recycled batteries a viable alternative to imported materials, which currently dominate Japan’s EV supply chain.
Japan imports nearly all its lithium, nickel, and cobalt, exposing its automotive and battery industries to geopolitical risks. To address this vulnerability, the government will enforce mandatory recycling of small batteries starting in 2025 under revisions to the Act on the Promotion of Effective Utilization of Resources. Authorities are also considering extending these requirements to EV batteries, though specific regulations have yet to be finalized.
Expanding the Used EV Market
In addition to recycling, Japan is working to develop a regulated secondary market for used EVs. Many older electric vehicles have degraded batteries that dealers are reluctant to process, leading to frequent exports and lost opportunities for domestic resource recovery. The government is partnering with private companies to establish standards for used EV sales, ensuring more batteries remain in Japan for recycling.