Dead Batteries, New Power: The EV Supply Chain Reinvented

LG and Toyota Tsusho back battery recycling in North Carolina to meet rising EV demand and benefit from US industrial policy

24 Jun 2025

LG Energy Solution and Toyota Tsusho have announced plans to build a battery recycling facility in Winston-Salem, North Carolina, as part of a push to secure domestic supply chains and reduce dependence on imported raw materials.

The joint venture, named Green Metals Battery Innovations, is expected to begin operations in 2026. It will process up to 13,500 tonnes of battery production scrap each year, equivalent to material from more than 40,000 electric vehicle battery packs. The facility will produce black mass, a substance rich in lithium, cobalt and nickel, that can be reused in battery manufacturing.

The move comes as the US government implements industrial policy measures to strengthen domestic manufacturing. The Inflation Reduction Act offers tax incentives for recycled content in EV batteries, while new tariffs on Chinese electric vehicles and components have increased interest in local sourcing.

“This joint venture is a significant step toward realizing a circular economy for batteries, which is essential for building a sustainable mobility society,” said Masaharu Katayama, chief operating officer of Toyota Tsusho.

The facility is also expected to support LG’s broader strategy in energy storage and grid infrastructure, while Toyota Tsusho, part of the Toyota Group, deepens its investment in sustainable supply chains. Both companies are positioning themselves to benefit from a growing secondary market for battery materials.

Industry analysts say the project could encourage further private investment in battery recycling infrastructure. However, challenges remain, including the need for consistent volumes of scrap material and the volatility of global metals prices.

Green Metals Battery Innovations reflects a broader shift in strategy for the electric vehicle sector. With demand for batteries rising sharply, companies are not only expanding production capacity but also investing in long-term resource efficiency.