Panasonic Energy Launches Nickel Recycling Initiative for EV Batteries in Japan

Panasonic Energy has introduced a closed-loop recycling program for nickel used in lithium-ion battery cathodes, partnering with Sumitomo Metal Mining. The initiative, which repurposes battery scrap into new battery materials, marks Panasonic Energy's first such recycling scheme in its automotive battery production in Japan.

Under the agreement, nickel scrap from Panasonic Energy’s Suminoe Factory in Osaka will be processed by Sumitomo Metal Mining. The recovered material, converted into nickel sulfate at facilities in Ehime Prefecture, will be reused in cathode materials for lithium-ion batteries.

This program builds on Sumitomo’s existing battery recycling operations, which have been in place since 2017. The initiative supports a circular “battery-to-battery” process, aiming to reduce dependence on raw material extraction and lower CO₂ emissions through urban mining methods.

The current focus is on nickel, but the companies plan to expand recycling to include lithium and cobalt after 2026. Panasonic Energy has set a target of 20% recycled cathode material content in its automotive batteries by 2030. The move complements the company’s sustainability goals, which include cutting its carbon footprint in half by fiscal 2031 compared to 2022 levels.

The launch comes amid growing pressure to secure supply chains for critical battery metals, as electric vehicle adoption accelerates and the number of end-of-life batteries is projected to rise sharply around 2030.