Nordic energy company Fortum and battery chemicals producer Terrafame have signed an agreement for an experimental project in which metals recovered from the black mass of EV batteries by Fortum will be utilized in Terrafame’s battery chemical production.

Under the agreement, Fortum will supply nickel and cobalt recovered from the black mass of used EV batteries at the Harjavalta recycling plant to Terrafame, which will use the recycled raw materials to produce battery chemicals for new EV batteries. At the end of their life cycle, the batteries will be recycled again, thus closing the circulation of recoverable raw materials.

The need for battery chemicals is growing rapidly, and in Europe, new solutions are constantly sought to ensure the availability of raw materials for EV batteries. Although fully replacing the mining of primary raw materials, such as nickel and cobalt, with recycled materials is not possible in the near future, the EU’s upcoming sustainable battery regulations will require a gradual increase in the use of recycled materials in battery manufacturing.

Battery, electronics and car manufacturers must already prepare for new legislation, as the first minimum requirements for the recovery of battery materials, such as cobalt, nickel and lithium, will take effect in 2026.

Fortum and Terrafame’s experimental operations begin this month, and the collaboration is expected to span several years. The aim of the collaboration is to create a sustainable recycling value chain for future needs.