A non-ferrous metals plant in Tsuruga, Fukui Prefecture, has achieved 90% lithium recovery from used lithium-ion batteries, nearly doubling previous yields through optimized chemical processes. The breakthrough, featured in an NHK World report aired April 7, positions Japan as a serious contender in the global race to recycle critical battery materials.
The facility's process combines specialized furnace treatment with advanced hydrometallurgy. Used batteries are first separated to reduce fire risk, then burned to remove non-metal materials. The remains are crushed into a metal-rich "black powder," dissolved in water, and refined through proprietary chemical processes. The result: high-purity white lithium powder suitable for new battery production.
"We boosted lithium recovery from under 50% to 90% by changing chemicals and processes," a company representative told NHK. "We believe it's crucial to recycle lithium-ion batteries safely. It would really benefit Japan as a whole."
Why Japan Cares So Much
Japan imports virtually all of its lithium, cobalt, nickel, and rare earth elements. Much of the refining has historically been routed through China, creating supply chain vulnerabilities that policymakers now frame explicitly as national security concerns. The country's "urban mining" strategy treats electronic waste as a domestic mineral reserve.
A new 2026 law will require manufacturers and importers to collect and recycle small portable batteries from mobile phones, vapes, and power tools. Public-private targets aim for 70% lithium recovery and 95% for nickel and cobalt from storage batteries by fiscal 2030. Current collection rates for end-of-life lithium-ion batteries sit at just 14% through official channels, so the policy focus is on making recycling convenient and safe.
Major players are investing accordingly. Sumitomo Metal Mining has new plants planned for 2026. JX Nippon Mining & Metals is expanding its non-ferrous smelting operations. Trading houses like Itochu have launched joint ventures combining AI and robotics for automated sorting, while Toyota Tsusho recently acquired a major U.S. auto recycler.
Global Competition Is Fierce
Japan's 90% lithium recovery is excellent, but the country is not operating in isolation. The global lithium-ion battery recycling market is projected to grow from roughly $13 billion in 2025 to $70 billion by 2035, with compound annual growth rates between 18% and 30%.
In the United States, Redwood Materials, founded by former Tesla CTO JB Straubel, processes the equivalent of 250,000 EVs annually and reports recovery rates above 95% for lithium, nickel, cobalt, and copper. The company supplies recycled material directly back to Panasonic, GM, Volkswagen, and Toyota. Europe's strict Battery Regulation sets mandatory recycled-content targets, with companies like Umicore and Northvolt building capacity. China still dominates volume, handling an estimated 78% of global pre-treatment capacity.
The real constraint everywhere is collection. Most retired batteries never reach recyclers. Many Japanese EVs are exported at end of life, sending valuable metals abroad. Lithium-ion batteries pose fire risks that complicate logistics. And battery chemistries vary widely, from NMC to LFP, making automated sorting difficult.
The Circular Economy Takes Shape
The economics increasingly favor recycling. Recycled materials are often cheaper than newly mined equivalents once processing scales up. They require far less energy and water than primary extraction and avoid new habitat disruption. For automakers, domestic recycling offers supply chain resilience against price volatility and geopolitical disruption.
Japan's strength has always been in advanced refining and materials science rather than raw volume. The Tsuruga plant's achievement suggests the country can compete on technology even as China dominates scale. Whether these processes can be replicated or licensed internationally remains to be seen, but the timing is right. EV battery retirements will accelerate sharply in the late 2020s and into the 2030s.
For a resource-poor island nation, turning garbage into strategic assets is not just good policy. It is survival.
