The UAE has announced its first battery recycling plant, a collaboration between Lohum, BEEAH Group and the UAE’s Ministry of Energy & Infrastructure. The facility is expected to handle up to 3,000 tonnes of li-ion batteries per year, as well as repurpose 15MWh of batteries for energy storage systems.

A First for the UAE

The press release didn’t indicate a location or time frame for when or where the facility will be established. However, we anticipate the plant to have both pre- and post-treatment capabilities, using Lohum’s hydrometallurgical NEETM™ technology. Additionally, as the Ministry of Energy & Infrastructure is involved, it is expected it will provide substantial subsidies easing the initial capital expenditure for the project.

CEO and Founder Lohum, Rajat Verma, commented, “This joint development framework agreement between government, public-private, and global enterprise is a turning point for sustainability in the UAE, as the development will lead to a circular domestic supply of clean energy transition materials. We are thrilled to partner with the MOEI, UAE and BEEAH to drive low-CO2e battery waste management in the UAE and create a parallel battery materials supply chain globally.”

The Shareholders

Lohum is an Indian based battery recycler established in 2018. Already with a strong presence in the Indian market, it recycles and repurposes EV, ESS and 2&3 portable batteries, producing battery grade materials and energy storage. This announcement aligns with its plans to expand into the US and Europe. BEEAH Group was established as an environmental and waste management company based in the UAE, it has since expanded into the renewable energy, green mobility, and transport sectors. Already it operates metal, tyre and plastic recycling facilities in the region, so its entrance into the battery recycling market supports its current operations.

Rho’s Evaluation

Considering the UAE’s relationship to oil, the country does have increasing EV penetration. By 2050 the government expects 50% of vehicles on the road to be BEV. Additionally, from January to October this year the country imported over 26,500 BEVs predominantly from China. Although the country will remain reliant on ICE vehicles for some time, it is evident there will be a need for end-of-life recycling capacity in the near future. This announcement is an initial step in creating a circular battery ecosystem in the UAE.

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Sources: MOEI