Metastable Materials plans to expand high-yield battery recycling capacity

Metastable Materials, a Bengaluru-based startup focused on lithium-ion battery recycling, is looking to ramp up operations and establish a new factory in the coming two years. The company uses a chemical-free technology to extract valuable materials from used batteries, including copper, cobalt, nickel, and lithium. The company claims that this method leads to a high recovery rate of over 90 per cent, positioning itself as a potentially sustainable solution to the growing electronic waste problem.

Founded in October 2021, the company’s current manufacturing facility, located in Bangalore, holds a capacity to extract 5 tonnes of materials per day. The company has plans for expansion, with discussions underway to open a new factory in the next couple of years. This expansion aligns with the company's aim to scale its operations and further address the growing demand for sustainable battery recycling solutions. The investment amount towards the factory was not disclosed.

 

Metastable has received seed funding from investors such as Sequoia India’s Surge, Speciale Invest, and Theia Ventures. The company secured funding from investors Kartik Hajela and Akshay Singhal of Log9 Materials, along with Archana Priyadarshini and Sanjeev Sangrass. The funding amount was not disclosed by the company.

The company operates by buying scraps from various companies both cell manufacturers and vehicle OEMs and then after extraction of materials such as copper, cobalt, nickel, and lithium, they sell it to users and traders of these critical metals for sales.

Speaking about the company and the future in the market, Shubham Vishvakarma, founder of Metastable Materials, stated, “The industry standard for lithium-ion battery recycling involves creating a material called 'black mass.' While this is a step towards full battery recycling, I believe it falls short of true recycling—it's more like pre-processing. Most companies currently operate in this way. There are international players in the recycling space, but our technology is patented and distinct and hasn't been adopted by others yet. My research on this method is gaining academic attention, with many professors recognizing its potential as a future recycling solution. However, we still need to refine the technology for optimal performance.”

This chemical-free extraction technology offers an alternative to traditional battery recycling methods, which often involves harsh chemicals and generates hazardous waste. Metastable Material's approach extracts the valuable materials from spent batteries, allowing them to be reused in various industries, including batteries, potentially reducing reliance on virgin materials.

Speaking about the company's future plans, Vishvakarma emphasised the importance of building an ecosystem for battery recycling, including streamlining reverse logistics processes and standardising regulatory frameworks. Vishvakarma highlighted the need for collaboration within the industry to address the challenges associated with battery recycling effectively.

India's Electric Vehicle (EV) market is gaining momentum. Electric vehicle penetration has climbed from 3.7 per cent in the financial year 2023 to 4.3 per cent in the first 10 months of the financial year 2024, and the government aims for a significant leap to 30 per cent EV market share by 2030. This ambitious target reflects the confidence in the future of EVs in India.

The surge in electric vehicle penetration rates is evident. As credit rating agency ICRA revealed an increase from 3.7 per cent in the financial year 2023 to 4.3 per cent in the first 10 months of the financial year 2024 across various segments. Similarly, statistics from the VAHAN website depict a growth of 55 per cent year-on-year in cumulative EV sales for the first 10 months of 2023, reflecting a growing demand for EVs in India. Supported by policies and initiatives, NITI Aayog has stated that “India is taking rapid strides towards achieving its target of 30 per cent EV market share by 2030.” This trajectory suggests a further surge in EV penetration in the coming years. Considering this momentum and the expanding infrastructure, it's conceivable that EV penetration could surpass earlier estimates, hence the disposal and recycling of batteries is a major issue India can face in the upcoming years as studies suggest that 95 per cent of lithium-ion batteries end up in landfills and become an environmental hazard.