Panasonic Launches Closed-Loop Recycling Initiative in Japan with Sumitomo Metal Mining

Panasonic Energy has announced a new partnership with Sumitomo Metal Mining, a leading Japanese raw materials company, to recycle nickel from lithium-ion battery cathodes. This collaboration aims to create a circular economy by reusing valuable battery materials in the production of new batteries.

Under the terms of the partnership, Sumitomo Metal Mining will recycle nickel from battery scrap generated at Panasonic Energy’s Osaka factory. The recovered nickel will then be reused as cathode material in Panasonic’s lithium-ion batteries, effectively closing the loop in the battery manufacturing process. This initiative, dubbed a “battery-to-battery” process, is the first of its kind in Panasonic Energy’s automotive battery production, according to the company’s press release.

While the initial focus is on nickel, Panasonic Energy has announced plans to extend the program “beyond 2026” to include other essential materials, such as lithium and cobalt. Panasonic Energy has also set a target of reaching 20 percent recycled cathode material content in its automotive batteries by 2030, calling that part of a broader sustainability strategy tied to its goal of halving its carbon footprint by fiscal 2031 compared with the 2022 level. The company is betting on urban mining techniques to recover critical raw materials from used batteries, significantly reducing CO₂ emissions compared to traditional mining methods.

Strategic Investment in Recycling Facilities

Panasonic Energy noted that the recycling will take place at Sumitomo Metal Mining’s Toyo Smelter & Refinery and the Niihama Nickel Refinery, both located in Japan. In 2021, the company invested 47 billion yen (about 358 million euros) to expand its cathode material production capacity at these facilities. The initiative not only contributes to battery recycling but also supports Sumitomo’s broader efforts to enhance its capacity in the growing electric vehicle market.

Kazuo Tadanobu, CEO of Panasonic Energy, highlighted the importance of the partnership, stating, “Building a sustainable recycling system for end-of-life lithium-ion batteries is crucial for the future expansion of Evs. We are advancing initiatives in both Japan and the U.S., and through this partnership with Sumitomo Metal Mining, we are accelerating our efforts toward realizing a circular economy. This collaboration supports our mission of fostering a sustainable society.”

According to Panasonic Energy, this new initiative in Japan follows a similar agreement Panasonic Energy signed in 2022 with Redwood Materials in the United States. In that deal, Redwood Materials provides recycled cathode materials and copper foil to Panasonic’s Gigafactory 1 in Nevada, a joint venture with Tesla where the Japanese company manufactures lithium-ion batteries for Tesla vehicles. However, while the Redwood Materials partnership involves recycled materials, these are not sourced from Panasonic’s own batteries. This makes the new collaboration with Sumitomo Metal Mining in Japan the first true closed-loop initiative for Panasonic, as it involves recycling and reusing materials from its own battery production.

Driving the Future of Electric Vehicles

As the electric vehicle market continues to expand, the need for sustainable resource management becomes ever more pressing. With the anticipated peak in the volume of end-of-life batteries around 2030, the importance of efficient recycling systems will only grow. Through these initiatives, Panasonic Energy aims to ensure a steady, sustainable supply of critical materials needed to power the next generation of electric vehicles.

Source: Panasonic ENERGY