TUCSON, Ariz. (KGUN) — Heritage Battery Recycling has announced plans to build a lithium-ion battery recycling facility in Eloy, Ariz., bringing approximately 110 permanent jobs to the area, according to the Arizona Commerce Authority.
The company expects the facility will be in operation by mid-2023. It will move into an already-existing building in Eloy, following a construction project that will expand it by 75,000 feet.
“Eloy is pleased to welcome Cirba Solutions to our community,” said Eloy Mayor Micah Powell. “The investment and new jobs fit nicely into Eloy’s ongoing plan to attract quality employers to our community."
Cirba Solutions is the parent company of Heritage Battery Recycling and has a presence in Arizona already.
Battery recycling is one method to help "close the critical materials supply gap" as demand for electric vehicles and other lithium-ion battery manufacturing grows.
“The lithium-ion battery market is expected to grow exponentially over the next several years, with a projected market size approaching $25 billion by 2028,” said David Klanecky, President and CEO, Cirba Solutions.
“Federal incentives for the purchase of EVs, requirements for domestic EV battery manufacturing included in the Inflation Reduction Act, and state requirements like California’s recent move to require all new vehicles sold in the state to be zero-emission by 2035, ensure that lithium-ion battery recycling will be critical for auto-manufacturers to meet demand and have a sustainable future,” Klanecky said.
In Tucson, that demand is already becoming apparent, with EV charging requirements in new buildings, a growing Sun Tran electric fleet and an increasingly large number of EVs sold locally.
Even with increasing demand, the supply of lithium has been a challenge in the United States, where only about 1% of lithium is produced domestically.
The Eloy facility will process lithium-ion end-of-life batteries and battery manufacturing scrap, with additional services including disassembly, sorting, warehousing, and diagnostic testing. The product from the Eloy facility will serve as a raw material feedstock, providing access to Nickel, Cobalt, Manganese and Lithium.
That's potentially good news for the environment, as well, keeping batteries out of landfills—where they are never supposed to end up, due to potential hazards—and reusing raw materials that would otherwise need to be mined.
"This new EV battery recycling facility bolsters Arizona’s vibrant battery and electric vehicle supply chain and furthers Arizona’s reputation as an epicenter for lithium batteries,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “The innovative facility will produce battery materials to support the continued growth of electric vehicle manufacturers across Arizona and the United States. Arizona continues to be a magnet for technology and advanced industries.”
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Anne Simmons is the digital executive producer for KGUN 9. Anne got her start in television while still a student at the University of Arizona. Before joining KGUN, she managed multiple public access television stations in the Bay Area and has worked as a video producer in the non-profit sector. Share your story ideas and important issues with Anne by emailing anne.simmons@kgun9.com or by connecting on Instagram, Twitter or LinkedIn.
