Indicative effect of incentives on the profit margin of LFP recycling

The sensitivity of profit margins to the allocation of incentives to recyclers.



Based on the profit margins of recycling LFP batteries at low metal prices. Assuming that there is $3,750 per battery (100% of incentives tied to domestic sourcing) passed onto recyclers and a battery weight of 0.5 ton, there is potentially $7,500 per ton of batteries recycled available to recyclers. The maximum incentive available for allocation may be higher or lower than $7,500 and is dependent on the recycled battery's metal content, the recycler's efficiency, and negotiations with the battery manufacturer to whom the recycling products are sold.
Table: RMI Source: RMI analysis
RMI