5.0

2. Business

0.0

FY06/21

L i t h i u m - i o n B a t t e r y R e c yc l i ng

Lithium-ion Battery Recycling Business
Lithium-ion Battery Recycling Businessneutrality, demand for lithium-ion batteries (LIBs) is expanding rapidly. However,

1.0Black mass

1.34

0.57

0.47

0.5

0.35

0.0(0.5)(0.08)
FY06/21

Heat treatment

Shredding/sorting*2

Electrolyte is volatilized
through heat treatment.

Sorting with sieves after
shredding

FY06/22

FY06/23

LIB materials recycling
supply chain

Black mass:
Hydrometallurgymanufacturers
Iron:
Steel manufacturers
Copper:Copper smelters andmanufacturers(PCs, tools, electric bicycles, etc.)

Electrode plate(mobile phones, etc.)

Sorting with sieves after
shreddingAnode sheet/cathode
sheet

Active materials:
Hydrometallurgy
manufacturers

Active materials*1 applied tocopper foil or aluminum foil
are efficiently stripped off by
a special shredder

Carbon:Steel manufacturers

For ESS(household and industrial storage
batteries, etc.)*1 Black mass/active materials: A concentrated sludge of cobalt, nickel, and lithium*2 By evaporating electrolytic solution through heating treatment, shredding and sorting are handled in a continuous line

0.4

0.25

Plant Recycling Process

Shredding/sorting

0.6
0.5

0.35

0.3

Cylinder type

Square and laminated type

0.75

(Billions of yen)

0.50

Production Using a Decarbonization Process at RE100 Plants
To achieve carbon neutrality by 2050, decarbonization processes will be required inbattery recycling, as well. With the exception of the trucks we use for haulage, VOLTA istransitioning to 100% renewable energy in all its processes. We will help to build a lowcarbon society by working toward RE100 at new sites we will establish in the future.

FYSales (left1.00

Batteries(EVs, HEVs, PHEVs, etc.)

0.0

23

1.63

Recycling processVehicle use

0.0(Billions of yen)

LIB Recycling Process
Batteries to Be Processed

10.0

Ordinary profit (right scale)

2.0
1.5

concerns exist about the shortage of rare metals, which are used in LIB production. The
ENVIPRO Group is contributing to progress of electrification by recycling rechargeable
batteries, including LIBs.
We aim to achieve a closed-loop system of LIB-to-LIB and envision a circular economy
for batteries.

FY06/23(Billions of yen)

As various economic activities are being electrified with a view toward achieving carbon

Recycling LIBs to Produce Black Mass and Collect Valuables
LIB cathode materials contain minor metals, such as cobalt, nickel, and lithium. After LIBs
are heated, they are crushed and sorted to collect black mass*1, a mixture of minor
metals. The company also collects copper contained in the anode material. VOLTA Inc.
leverages its accumulated expertise to sell high-quality collected metals to various refiningmanufacturers. In 2023, we have expanded our LIB
recycling line and significantly increased our production
capacity. We also conduct production equipment
adjustments for each type LIB to ensure optimal
recycling.

Sales (left scale)

FY06/221.0

Copper:Copper smelters andmanufacturers
Aluminum:
Reducing agent applications

0.2

0.00

0.1

(0.25)0.0

FY

ENVIPRO Group Sustainability Report 2023

2. Business24

L i t h i u m - i o n B a t t e r y R e c yc l i ng

Lithium-ion Battery Recycling Business
Low-Environmental-Impact LIB RecyclingExpanding Our Base of Operations and Taking up Challenges in the Hydrometallurgy BusinessIn the heating process during LIB recycling, toxic gases
are generated, mainly consisting of fluorinecompounds. VOLTA Inc. has installed environmental
facilities to remove these harmful substances andreduce environmental impact.

In 2023, we acquired an LIB recycling plant in the city of Hitachinaka, Ibaraki Prefecture, with a processing capacityof 5,000 tons. We are preparing for the plant to commence operation in 2024. In addition to collecting processwaste from LIB production factories, at the Ibaraki plant we also expect to collect used LIBs from the densely
populated Kanto area.
As no commercial-scale black mass refining facility is currently operational in Japan, significant resources are
flowing overseas. The ENVIPRO Group is taking the lead to establish a hydrometallurgy business to promote a
circular economy for LIBs in Japan, and we continue with research aimed at achieving closed-loop recycling.

Environmental facilities at theFujinomiya plant

Building a Closed Loop
Recycling of Used Rechargeable Batteries Through Contracted Industrial Waste DisposalCollection

Pretreatment
BMThe rate of use is increasing for lithium iron phosphate batteries, which are used in industrial and portable power
applications. As these batteries do not contain nickel or cobalt, they are typically circulated as waste materials.
VOLTA will respond to this trend by utilizing permits for intermediate disposal of industrial waste and establishing asystem for accepting materials from valuable items to industrial waste. This will allow us to provide customers witha one-stop service for LIB recycling, ensuring competitiveness and diversifying revenue sources.

The ENVIPRO Group is working to establish an information management system that complies with the battery
passport mechanism mandated by European battery regulations, which will be enforced in the EU in 2026. Our goal
is to eventually incorporate the operational results of the information management system for LIB closed-loop
recycling in the downstream area of resource circulation, which has been demonstrated by VOLTA, into a nationally
led information management system.

Production

Precursor

Cathodematerials

Co

Obtaining Certification under the R2 Standard for Sustainable Recycling

Promotion of DX in Closed-Loop LIB Recycling

NiNickel sulfateBM plant

VOLTA has obtained certification under the R2 Standard for responsible reuse and recycling of battery equipment, awidely adopted standard in the United States. The standard attests to VOLTA’s use of a recycling management
system for appropriate recycling.

Metal collection and Refining

Hydrometallurgical plant

Cobalt sulfate

LiLIBsFinishedproducts forautomobiles, etc.

Lithium carbonate

LIB manufacturing plant process waste, used LIBs

Strategic opening of blackmass production sites toachieve closed-loophydrometallurgy

Conducting numerous lectures to raise awareness of LIB recycling