LG Energy Solution and Toyota Tsusho Launch U.S. Battery Recycling Venture
On June 19, 2025, LG Energy Solution and Toyota Tsusho Corporation made a significant stride in the realm of battery sustainability by announcing their joint venture, Green Metals Battery Innovations, LLC. This partnership marks a strategic move to establish a dedicated battery recycling operation in North Carolina, specifically in Winston-Salem. The primary goal of this new facility is to streamline the recycling process by extracting 'black mass,' a critical material in battery recycling that contains essential raw metals such as nickel, cobalt, and lithium.
The establishment of Green Metals Battery Innovations signifies LG Energy Solution's commitment to creating a closed-loop battery recycling system that aligns with principles of a circular economy. As electric vehicle (EV) adoption continues to rise, the demand for sustainable solutions to recycle batteries becomes increasingly pressing. The plant, which is set to begin operations in 2026, aims for an impressive annual processing capacity of 13,500 tons of scrap—equivalent to over 40,000 automotive batteries. This venture underlines the necessity of recycling for maintaining the supply chain while minimizing carbon emissions associated with battery manufacturing.
In the initial stages, LG Energy Solution will provide production scrap generated from its EV battery manufacturing. This input will be processed in the new facility, whereby the black mass extracted will undergo additional steps to recover valuable raw materials. The project outlines a comprehensive cycle where materials are recycled and reused for the production of new batteries, ultimately fostering a truly sustainable model for battery life cycles.
Chang Beom Kang, the Chief Strategy Officer at LG Energy Solution, emphasized the significance of this joint venture not only for ensuring a steady supply of critical battery materials but also for enhancing the company's competitiveness in the North American recycling market. He stated, "This joint venture will not only help secure a stable supply of key battery materials but also enhance the competitiveness of our recycling business in North America. We are fully committed to leading the recycling market through innovative and differentiated technologies."
Furthermore, Masaharu Katayama, Chief Operating Officer of Toyota Tsusho, expressed pride in collaborating with LG Energy Solution, reflecting on the vital need for a robust battery recycling infrastructure in North America. He articulated the venture as a pivotal step towards realizing a circular economy for batteries, which is essential for creating a sustainable mobility paradigm.
The joint venture is expected to play a crucial role in the landscape of battery recycling in the region. With LG Energy Solution being a leading manufacturer of lithium-ion batteries and holding a wealth of intellectual property with over 69,600 patents, the company is well-positioned to innovate in battery recycling technologies that minimize waste and improve sustainability. The partnership aims to make strides towards carbon neutrality, with aspirations to achieve it across their value chain by 2050.
As the world shifts towards greener energy solutions, initiatives like the Green Metals Battery Innovations venture illustrate the increasing collaboration between industries essential for tackling the environmental challenges posed by battery waste. By pioneering this process and establishing robust recycling systems, both LG Energy Solution and Toyota Tsusho are taking important steps towards a sustainable future in automotive technology and energy efficiency. Through this collaborative effort, they aspire to lead in the burgeoning field of battery recycling, ensuring that the materials used in electric vehicle production remain within a sustainable cycle, benefiting both the environment and the economy.