Spiro partners with Ace to recycle batteries

From the newsletter

Spiro, Africa’s largest EV manufacturer, has partnered with the US-based e-waste company Ace Green Recycling to recycle end-of-life lithium-ion batteries. The partnership designates Ace as Spiro’s exclusive global recycling partner. Additionally, the recycling centres will be established near Spiro’s collection hubs across Africa.

• Ace’s LithiumFirst™ technology, designed to recycle lithium-ion battery materials, including Lithium-ion phosphate (LFP), will be deployed.

• Addressing battery recycling not only supports Spiro’s growth but also contributes to broader goals such as decarbonisation, resource efficiency, and economic development in Africa.

More details

• Currently, Africa’s EV battery waste landscape remains nascent. However, battery waste volumes are expected to rise significantly over the next 10–15 years. While the average lifespan of an EV battery goes beyond 15 years, Africa’s high reliance on second-hand vehicles could accelerate the growth of EV battery waste even faster.

• At present, much of the battery waste is handled informally, often in unsafe and environmentally harmful ways, as seen in Nigeria’s e-waste hubs, such as Lagos. This informal sector could either compete with or complement Spiro and Ace Green’s efforts, depending on how the partnership integrates or formalises these existing practices.

• The scope of the partnership is comprehensive, focusing on battery collection, recycling, and repurposing, particularly for lithium-ion batteries. This initiative is expected to be continent-wide, given Spiro’s extensive operations across Africa, with a phased timeline for scaling up. Spiro’s existing network in countries such as Benin, Togo, and Rwanda provides a strong foundation for the initial rollout, with further expansion planned.

• Ace Green’s recycling technologies, such as its LithiumFirst™ which can extract valuable materials from Lithium Iron Phosphate (LFP) batteries, are expected to focus on closed-loop recycling, where materials are reused for new batteries, ensuring resource efficiency. Compared to traditional methods like pyrometallurgy—which are energy-intensive and emit high levels of CO₂—Ace’s approach is sustainable and cost-effective.

• Establishing recycling facilities in Africa will likely be expensive due to infrastructural deficits. However, potential revenue streams from recycled materials, government incentives, and carbon credits could help offset these costs. For instance, recycled lithium carbonate and cobalt could be sold to local battery manufacturers or exported globally, tapping into the growing demand for sustainable materials.

• Nevertheless, profitability will depend on scaling operations and securing investment, which may be challenging given Africa’s perceived investment risks compared to more stable markets such as Europe or North America.

• Policy and regulation will play a critical role in the partnership’s success. For example, Rwanda’s collaboration with Enviroserve for e-waste recycling demonstrates how government support can enable such initiatives. However, import/export restrictions and a lack of standardisation could hinder progress. The partnership will need to engage proactively with governments to shape favourable policies, a strategy that has proven successful in other markets, such as China.

Our take

• Batteries are among the most expensive and hazardous components of an electric vehicle. If Africa fails to develop a robust domestic battery supply chain, the continent could face significant environmental and economic losses in the future.

• This partnership has the potential to accelerate EV adoption in Africa by addressing consumer concerns about battery lifespan and disposal. For instance, in Kenya, where BasiGo is already making strides in electric buses, affordable and sustainable battery solutions could further boost uptake.

• By establishing a circular battery value chain, this initiative could position Africa as a leader in sustainable mobility, attracting further investment and innovation. Moreover, recycling materials such as lithium, cobalt, and nickel could reduce Africa’s reliance on battery imports, lower production costs, and create local jobs.

• Ensuring safety and quality standards will be paramount, given the hazardous nature of battery waste. The partnership will need to implement robust safety protocols and quality control measures, potentially collaborating with international organisations to certify its processes. This would not only enhance credibility but also ensure that recycled materials meet global industry standards, making them competitive in both local and international markets.