Japan and the European Union (EU) have agreed to collaborate on the recycling of electric vehicle batteries to reduce their reliance on China for critical minerals, reported the Nikkei on the 23rd.
According to the report, Japan and the EU will establish a system by next year to share information on the extraction areas and suppliers of minerals used in batteries.
Japan and the EU each plan to develop and link electronic platforms that manage information about electric vehicle batteries.
Japan is creating the “Uranos Ecosystem,” involving over 50 companies, including Toyota, Nissan, Honda, and Denso, while the EU already has “Catena-X,” led by automobile manufacturers.
Japan will connect the two platforms by next year, excluding confidential information related to the core competitiveness of its companies, such as material and component procurement sources and procurement volumes.
The purpose of linking the platforms is to share and track information about the minerals used in batteries to prevent the outflow of minerals outside the region and to promote recycling.
The Nikkei analyzed that by recycling minerals from used batteries, Japan and the EU aim to reduce their reliance on China for critical minerals.
According to the International Energy Agency (IEA), China holds a 65% share of the global market in processing and refining lithium, a major material for electric vehicle batteries.
China also dominates the processing and refining of cobalt, another battery material, with a 76% global market share and 70% in graphite mining.
Last year, China introduced an export permit system for graphite, prompting countries around the world to diversify their sources of critical minerals from an economic security perspective.
The Council, representing the 27 EU member states, officially adopted the Critical Raw Materials Act (CRMA) last month to reduce dependence on third countries for key minerals like lithium and magnesium.
The CRMA includes regulations to strengthen domestic manufacturing capabilities and diversify supply lines, aiming to reduce the dependence on third-country strategic raw materials to less than 65% of total consumption within the region by 2030.
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