Sumitomo Metal Mining Commissions Japan’s First Commercial EV Battery Recycling Plant

Sumitomo Metal Mining has commissioned Japan’s first commercial-scale electric vehicle battery recycling plant in Ehime prefecture. The new operation recovers essential critical minerals, including nickel, cobalt, lithium, and copper, from spent lithium-ion battery cells. This milestone advances Japan’s efforts to establish a circular economy and secure stable domestic battery materials.

Commercial Operations and Processing Capacity

The recycling plant spans two sites in Ehime, including the Toyo smelter in Saijo and the Niihama nickel refinery. The facility can process 10,000 tonnes of battery cells annually. This capacity equals approximately 60,000 electric vehicle battery packs. SMM expects to reach full-scale commercial operations in fiscal year 2028. The plant accepts both spent batteries and manufacturing scrap from domestic and international suppliers.

Closed-Loop Supply Chain Integration

SMM refines recovered nickel and cobalt into a high-purity solution at its Isoura plant to manufacture fresh cathode material. The company also collaborates with chemical producer Kanto Denka Kogyo to recover battery-grade lithium. This partnership creates a direct battery-to-battery recycling model. The project supports Japan’s national strategy to secure 380,000 tonnes of lithium and 310,000 tonnes of nickel annually by 2030.

Market Impact

○ Impacted Metals: Battery-Grade Nickel, Cobalt Sulfate, Lithium Carbonate, Refined Copper, Black Mass

○ Direction: Bullish

○ Time Horizon: 2026–2028

○ Affected Industries: EV Manufacturing, Lithium-ion Battery Recycling, Cathode Material Production, Critical Minerals Processing

○ Related Price Reports: Nickel Alloy Weekly Price Report

○ Watch Item: Monitor SMM commercial operational scaling and feedstock procurement volumes ahead of full FY2028 production.

SuperMetalPrice Commentary:

SMM’s Ehime recycling plant gives Japan its first commercial defense against raw material supply disruptions in the EV sector. Recovering battery-grade nickel, cobalt, and lithium domestically reduces reliance on primary mining imports and foreign refining capacity.

Integrating recycling directly into cathode manufacturing creates a sustainable closed-loop supply model for Japanese automakers. Success in scaling this 10,000-tonne facility will set a benchmark for regional battery recycling infrastructure across Asia.