The global mining company Glencore Plc may look elsewhere for a European recycling hub for electric car batteries after the Italian region of Sardinia rejected a fast-track approval process for its pilot project, the mining firm said. The regional government said it would submit the demonstration project for a battery materials processing hub in Portovesme to a full environmental impact assessment, potentially disrupting its timeline and making it economically unviable.
Li-Cycle Holdings Corp and Glencore said in May that they planned to develop a recycling hub in Italy to produce materials, including lithium carbonate, to respond to a global shortage of critical raw materials for a fast-growing EV market. They expected the facility to begin operations in late 2026 or early 2027.
The Sardinia plant was intended to extract essential metals, such as nickel and cobalt, from discarded EV batteries, known as “black mass.” The companies were to build the hub in the Portovesme metallurgical complex, which provides access to ports, utilities, and processing equipment. They planned to create a 50/50 joint venture to repurpose the site.
EVs are becoming more popular as countries seek to reduce conventional vehicle air pollution and carbon emissions. But as the industry grows, so does the need for raw materials like lithium and nickel for battery production. These are in short supply, and demand is rising, increasing prices. The two companies’ plan to repurpose discarded batteries was seen as one way to help ease that bottleneck by tapping into the world’s largest source of these commodities: unused EVs.
Glencore and Britishvolt Ltd, a British-based battery recycler, had hoped to establish a facility to process 10,000 tonnes of black mass each year. The plant is expected to produce a range of end products, including nickel, cobalt, and zinc, from recycled material while providing a valuable source of recycled lithium-ion batteries.
The companies had planned to create the plant in Portovesme, which is close to an existing Li-Cycle production facility. They also expected to use a technology that would allow them to operate the plant with minimal impact on the local environment and wildlife.
However, the regional government has now said it will require the plant to undergo a full environmental impact assessment, which is expected to take about a year. The delay is likely to push back the start of operation by about a year and could make the project unviable.
Despite the setback in Italy, Glencore and Li-Cycle still hope to find a solution for the looming raw material bottleneck that could derail the rapid growth of the EV industry. The companies will continue to work with authorities in Sardinia and other regions to explore alternative options for the project, including a new site, the companies said. —Claudio Rocco contributed to this report. Rocco is a Reuters correspondent based in Johannesburg, South Africa.
