Month: March 2023

The growth of the EV market in Europe & Italy: the crucial role of battery recycling for the industry’s sustainability

EV sales are rising fast in the European market, and predictions call for demand to grow strongly over the next years. Although this begs the question: is there enough lithium, cobalt, and nickel to underpin such rapid growth? The answer can also be found in advancements in the recycling process of EV batteries, representing a crucial challenge that must be tackled in order to guarantee the industry’s sustainability. Recovering as many raw materials as possible will be the basis for sustainable growth. Fortunately, along with EV producers, battery makers and companies investing in the circular economy are also involved in the development of more efficient recycling methods, as well as in the recovery of the largest possible quantity of raw materials. Let’s find out more!

The evolving scenario of the recycling industry within the context of EV batteries: focus on Europe & Italy

According to a new report from Motus-E in partnership with Strategy& and Milan’s Polytechnic, the European market for EV battery recycling could be worth roughly 6 billion euros by 2050. Even though major investments will be needed to improve the recycling technology and the productive capacity, as well as the development of international standards for battery recycling, it’s also true that the capacity of “second life” applications is on the rise. Based on this report, it’s forecasted that the volume of batteries destined for recycling in Europe will reach about 3,4 Mton, while revenue generated from recycling will reach 4.1-6.1 billion euros, with a marginality of 1.2-3.2 billion euros.

Sales of EVs are projected on the rise in Italy as well, as the capacity to recycle batteries. In fact, the volume of batteries destined to be recycled will reach 367 kton while revenues from recycling will reach 431-646 million euros, with a marginality of 121-337 million.

The capacity of EV batteries

Based on the make and model of each EV, the capacity of each battery varies considerably, although next-gen batteries are becoming ever more efficient and long-lasting. Even second-hand batteries, whether recycled or regenerated, have now reached a very high level in quality standards, stretching their usable life for a whopping further 10 years. We forecast that the capacity of such batteries will grow, also supported by a rise in the use of devices that monitor the State of Health – or SoH – of exhausted batteries, meaning, measuring the performance levels guaranteed by batteries which varies over time.

However, at the end of their useful life, batteries must be disposed of in a safe and environmentally-sound way in order to prevent any damage to the environment and health.

The value chain of EV batteries

We can identify two macro-phases in the EV battery value chain:

1. Production and usage: includes the extraction of raw materials, the engineering of the battery, the construction of the vehicle, and its use to power the EV;
2. The end-of-life management: includes the collection of the batteries, transport, the eventual second-life reuse or refurbishing, the recycling of the battery, and the sale of recycled materials.

The end-of-life management of batteries

We now dwell on the second macro-phase of the battery value chain. Based on the state of health of the batteries, their management calls for three options in their end-of-life:

1. Reuse: the battery is reused in applications that differ from the automotive industry, through testing and battery-pack assembly;
2. Reconditioning: the battery is disassembled to its modules or cells, while its damaged parts are replaced in order to recover its factory capacity;
3. Recycling: raw materials contained within the battery are recovered through a series of mechanical, thermal, or chemical processes.

The success factors for the end-of-life management of batteries

The innovation in the sales model of EVs and the efficient management of the battery end-of-life process are critical factors that guarantee the sustainability of the sector. Six success factors were identified in the management of the battery end-of-life:

1. Evolution and regulatory compliance
2. Scaling for economic sustainability
3. Streamlining of logistics
4. Effectiveness of the recycling technology
5. Demand for recycling materials
6. Stability in the offer of raw materials

Recycling batteries: benefits for the environment and opportunities for Italy

Recycling EV batteries offers many perks for both the environment and business opportunities in Italy. In fact, on one side, the activity allows a significant reduction in greenhouse gases while preventing the scarcity of critical materials. On the other, it can create new job opportunities and stimulate economic growth in the sustainable technology business. And still more, it can guarantee savings because recycled raw materials are available on the market at reduced prices.

Also with regard to Italy, the industry’s economic outlook may prove to be positive. EU targets on the minimum content of recycled material in batteries are opening up a huge market, and thanks to an extensive experience in recycling, its industrial heritage, and its strategic position, Italy has the potential to become an industry leader, thus becoming a magnet for foreign clients looking to recycle their own batteries. As numbers in circulating EVs in Europe are on a natural upward trajectory, numbers in batteries to recycle will grow substantially after 2035, thus exponentially increasing the revenue of this business. Furthermore, activating a local supply chain would make Italy self-sufficient in this important phase of the battery lifecycle.

The regulatory contribution

In order to turn the aforementioned outlook into reality, and subsequently support the battery recycling market, it’s crucial that regulations are updated through a European regulation concerning the management of the battery’s end-of-life and its waste products. Such regulation should establish recycling standards for batteries, define ambitious recycling targets, and introduce incentive schemes that boost the recycling rate as a way to make the whole industry ever more sustainable while fostering new circular economy processes.

In Italy, the public charging network infrastructure keeps growing!

Overall, we’re witnessing a steady and significant growth of the public charging network throughout the Italian territory, especially regarding fast and ultra-fast charging stations, despite a persisting gap in coverage between Northern and Southern Italy, coherent with the development of the EV market. Hence, numbers testify to the constant commitment of specialized operators, including Ewiva, the joint venture by Enel X Way and Volkswagen Group, as reported in the latest report made by Motus-E, outlining the current electric mobility scenario and the extensiveness of Italy’s infrastructure, also compared to other European Union countries.

Electric charging infrastructure: the current Italian scenario

As anticipated, 2022 recorded a constant growth trend in the setting up of public-use charging points in Italy. We can notice a significant surge in the growth rate, coupled with the overall rise of installed charging points. As a matter of fact, by December 31, 2022, Italy feature 36,772 installed charging points in 19,334 charging stations (stations or columns) and 14,048 publicly available locations. Hence, last year saw a net growth of 10,748 units, with a 41% growth rate.

It’s also important to highlight how we’re also witnessing a rise in the power output of installed charging points: the DC quota of charging points has doubled, from 6% in 2021 to 12% in 2022, while the ultra-fast charging points quota has tripled, like those installed by Ewiva, featuring a power output ranging from 100kW to 350kW

Last but not least, although still strongly curtailed, we witness a strong growth compared to the previous year of charging points in motorways. In one year, locations have more than quadrupled: from 118 in 2021 to 496 in 2022. Of these, 64% boast power equal to or greater than 150 kW, allowing for ever shorter charging stops for drivers traveling on longer journeys.

How many electric cars are officially registered?

By December 2022, there are about 170,000 BEVs circulating in Italy. If we take into account the ratio between charging points and circulating electric vehicles, we immediately notice that Italy is on track to reach its long-term goal of considerable extensiveness of its charging service. In fact, Italy features more charging points per circulating vehicle compared to the UK, France, Germany, and Norway, ranking second only behind the Netherlands and Belgium.

The geographic distribution of charging points

To this day, the geographic distribution of public charging points still isn’t fully consistent throughout Italy, with 58% of infrastructures located in Northern Italy, 22% in Central Italy, and only 20% in Southern Italy.  However, more than 99% of the Italian territory features at least one charging point within a 20 km radius, and 86% within a mere 10 km. Ewiva is actively engaged in the development of charging infrastructure throughout the country, and since its establishment has activated about 120 new high-power charging points.

The number of charging points naturally grows exponentially as one gets close to urban centers and major cities, with over 600 charging points available within a 10 km radius. According to the Motus-E report, Rome is the city boasting the largest number of charging points, while Venice  tops the list for the number of points per capita, and Milan features the most charging points in relation to the city’s surface. Lombardy is the most virtuous region with 5,971 charging stations, followed by Piedmont, Veneto, Lazio, Emilia-Romagna, and Tuscany.

In terms of growth rate compared to 2021, Friuli Venezia-Giulia is the region that witnessed the highest growth (+96,95%), followed by Veneto (+58,6%), Sardinia (58,2%) and Marche (+55,2%).

How many charging points can Italians really reach from any starting point?

In order to foster the spreading of electric mobility, it’s fundamental that charging points are evenly spread throughout the territory.

In Italy, an EV driver can expect to find at least a charging point within a 30 km radius, and even restricting it further to 20 or 10 km, the coverage still remains satisfactory. Specifically, 99% of the Italian territory features at least one charging point within a 20 km radius and 86% within 10 km. Indeed, starting from a city center, an EV driver can reach over 600 charging points within a 10 km radius. However, if we travel to outer zones, the number of charging zones available within a 10 km radius lowers significantly, reaching less than 3.

A comparison with other EU countries

We now focus on the numbers of other European Union countries. By December 31, 2022, the following public-use charging stations were operational:

• Netherlands: 115,103;
• Germany: 88,992;
• France: 74,185;
• United Kingdom: 55,552;
• Norway: 26,

It’s worth noting that Italy is on par with other countries, and as pointed out earlier, it ranks second only to the Netherlands and Belgium for the charging points-EV ratio. The reason for this result is partially attributed to the number of registered EVs in Italy which is still on the low side. However, when compared to other countries, the Italian public-use charging network is growing at a compatible – if not higher – rate compared to the market growth of BEVs and has reached an overall satisfactory level of extensiveness. As a matter of fact, past and current investments carried out by charging operators are in advance compared to the EV market but running behind similar investments in other European countries.