The
global trend towards electrification is rapidly gaining momentum as societies worldwide prioritize
cleaner energy solutions.
اضافة اعلان
This seismic shift
necessitates a substantial increase in environmentally friendly batteries,
catering to diverse applications such as
electric vehicles (EVs) and the
storage of renewable energy generated from sources like solar and wind.
However, the journey towards a sustainable battery industry encompasses more than
just production recycling stands as the pivotal factor for establishing a
robust circular value chain. Within this context, Jordan is poised to ascend as
a regional exemplar of sustainability and innovation.
Jordan is ongoing
exponential growth
In Jordan, the EV sector is
currently undergoing an exponential growth phase, boasting an impressive fleet
of 1.8 million vehicles, with 18 percent being hybrid or fully electric.
Projections further underscore an
annual EV sales growth rate of 10.4 percent between
2023 and 2032, with sales volumes anticipated to exceed 40,000 units by 2032.
Incentivize private sector
investments
Considering these
statistics, the establishment of a comprehensive regulatory framework for the
import, reuse, and recycling of spent
EV batteries becomes imperative. Such a
framework holds the potential to incentivize private sector investments while
emphasizing the strategic importance of adopting a forward-looking perspective
towards the future of spent
EV batteries in Jordan.
The monumental shift from
fossil fuels to electric mobility has ushered in a new era of supply chains
defined by resilience, efficiency, and, most notably, sustainability. In this
intricate and transformative landscape, the importance of battery recycling emerges
as a
pivotal catalyst, capable of unlocking unparalleled opportunities.
A global demand
The burgeoning global demand
for EVs goes hand in hand with an equally pressing need for EV batteries. This
insatiable demand has triggered an impressive surge in battery production, with
projections indicating the establishment of over five terawatt hours (TWh) of
Gigafactory capacity globally by 2030. Coinciding with this growth, the near
future promises the retirement of over 100 million vehicle batteries as they
approach their end-of-life phase within the next decade.
Jordan's proactive stance in recycling battery materials not only contributes to reducing environmental impact but also positions the nation as a forward-thinking participant in the global shift towards cleaner and more sustainable energy solutions.
Repurposing
EV batteries for
stationary applications holds significant promise, offering an estimated supply
of over 200 gigawatt-hours by 2030, potentially achieving cost reductions
ranging from 30 to 70 percent. Remarkably, even after their primary vehicle
use, these batteries can retain up to 80 percent of their initial storage
capacity. The Union of Concerned Scientists asserts that used EV batteries can
serve secondary applications for an additional five to eight years.
Recycling not only reaps
environmental benefits, but shows economic potential
Recycling lithium-ion
batteries extracted from EVs promises not only environmental benefits but also
economic potential.
The reclaimed materials offer
the possibility of producing new batteries or repurposing them for energy
storage units. Efforts are actively underway to introduce more efficient
battery alternatives while championing closed-loop systems that ensure the
recyclability of all vehicle components. In parallel, an intense race is
underway to collect and recycle used
lithium-ion batteries. Noteworthy
investments from venture capitalists, automakers, and energy companies are
flowing into burgeoning recycling startups across North America and Europe.
The entirety of the battery
recycling value chain, from collection to metal recovery, is poised for
remarkable growth, with projections suggesting revenues exceeding $95 billion
globally by 2040. This robust growth trajectory is primarily propelled by
factors such as metal prices, the
widespread adoption of advanced battery cell chemistry, and the strategic regionalization of supply chains. This burgeoning
growth potential is anticipated to mirror the success of the primary metals
industry.
Historically dominated by
China, EV battery recycling is amid transformation
Historically dominated by
China, the global landscape of EV battery recycling is amid transformation. As
the
global EV fleet proliferates and aging vehicles reach the end of their life
cycles, the recycling market is primed for substantial expansion. Research
conducted by EMR, indicates a projected growth trajectory from $11 billion in
2022 to an impressive $18 billion by 2028 within the EV battery recycling
sector. Crucial minerals embedded within these batteries, such as lithium,
cobalt, and nickel, boast an average value of $1,000 per car.
A pivotal feature of the
US’s Act for Inflation Reduction is incentivizing mechanism in the form of
federal tax credits.
The monumental shift from fossil fuels to electric mobility has ushered in a new era of supply chains defined by resilience, efficiency, and, most notably, sustainability. In this intricate and transformative landscape, the importance of battery recycling emerges as a pivotal catalyst, capable of unlocking unparalleled opportunities.
These credits are contingent
upon automakers adhering to a specific criterion: By the year 2024, a
substantial 40 percent of the minerals utilized in vehicle components must
originate either from the United States or from countries with which the US
holds free-trade agreements. This requirement of sourcing and
recycling domestic or free-trade minerals takes on an even more robust stance by the year
2026, escalating to an ambitious target of 80 percent. The US has allocated a
notable $3.1 billion to bolster domestic production of batteries and essential
metals like lithium, cobalt, and nickel.
This strategic move aligns
with global sustainability objectives, particularly as the demand for sustainable
materials and practices continues to intensify.
Positions the Kingdom as
proactive
Jordan's proactive stance in
recycling battery materials not only contributes to reducing environmental
impact but also positions the nation as a forward-thinking participant in the
global shift towards cleaner and more sustainable energy solutions. By
capitalizing on its
unique FTA’s advantages, fostering innovation, and
facilitating collaboration, Jordan can emerge as a pioneering force in the
evolution of the EV battery market and its associated circular economy.
Hamzeh S. Al-Alayani is a Jordanian
public-sector government investments management company board member and a
regular regional energy and industrial commentator. Hamzeh holds an MBA from
the University of Aberdeen, UK, and a BSc in Mechanical Engineering.
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