Thanks to the introduction of numerous new models, including those available at more affordable prices, electric vehicles have gained popularity among Japanese consumers, making them a viable choice.
The practice of recycling batteries is crucial for the continued expansion of the electric vehicle market in Japan.
Also Read: TCM Firms Eye Hong Kong IPOs to Fuel Global Expansion
Currently, the Japanese automotive sector is endeavoring to develop strategies for the recycling and reutilization of used electric vehicle batteries within the nation.
Japan heavily depends on imports for lithium, nickel, and other scarce metals found in these batteries. Used electric vehicle batteries are commonly referred to as an "urban mine" due to their significant value as a resource.
According to a study conducted by the Japan Research Institute, although electric vehicles appear to play a substantial role, the majority, approximately 80 percent, of the estimated 110,000 used electric vehicles in Japan as of 2024 have likely been sent overseas along with their batteries.
The estimated worth of rare metals exported from Japan amounts to approximately 17.5 billion yen. Given the situation at hand, Panasonic Energy Co., a subsidiary of Panasonic Holdings, collaborated with Sumitomo Metal Mining. For the past year, these two entities have been engaged in extracting nickel from waste produced at a Panasonic Energy factory for in-vehicle batteries, with the aim of utilizing it as a material for batteries.
Also Read: Tamil Nadu Industry Minister Visits HD Hyundai’s Shipyard
Panasonic Energy is currently evaluating the possibility of extending their recycling initiative. However, to bring this project to market, a comprehensive plan must be formulated for the collection and disassembly of batteries, along with the development of cutting-edge technology and systems for the extraction and purification of precious metals.
Tetsuo Nanno from Panasonic Energy stated that due to the current low volume of used batteries in circulation and the lack of profitability in the recycling project, the most challenging aspect of developing a recycling scheme is the collaboration of multiple companies.
The Japan Automobile Manufacturers Association asserts that effective battery recycling is essential for advancing the widespread adoption of electric vehicles.
Koji Sato, chairman of the association and president of Toyota Motor, emphasized the necessity of establishing a system for the recycling of limited resources. He also underscored the importance of collaboration across the entire industry in order to achieve this objective. Local authorities have taken prompt action. In 2024, the Fukuoka prefectural government collaborated with Nissan Motor and various other companies to initiate a project aimed at developing a recycling system for used batteries.
Also Read: Kenvue Appoints Madhav Nayak as VP and CMO for APAC
Takashi Momiyama of the Japan Research Institute stated that there are numerous instances where battery recycling initiatives are initiated as pilot programs but do not progress to commercialization in the end. Momiyama emphasized the importance of the nation's effort in creating a comprehensive program for recycling used batteries as a strategic initiative at the national level.