A two stage heat treatment restores a used battery cathode to match new material

A used electric vehicle battery cathode has typically lost 20% of its lithium by the time a pack is declared worn out, but a laboratory process that keeps the cathode powder whole instead of dissolving it or burning it restored one to match new material and held nearly 96% of that capacity after 50 cycles. Princeton NuEnergy already runs a commercial version of the process in South Carolina, where it claims a 38% cost reduction.

20%1share of the lithium a commercial electric vehicle battery cathode has typically lost by the time a pack is declared worn out
nearly 96%1capacity a two stage relithiated cathode retained after 50 charge and discharge cycles, matching or very slightly beating the never used material on first cycle capacity
38%5cost reduction Princeton NuEnergy claims for its direct recycling process at its Chester South Carolina facility, compared with what it calls conventional methods

Burn it, dissolve it, or keep it whole

Lithium ion battery cathodes, the part of a battery that stores its energy while it charges, can be recycled 3 ways. Pyrometallurgy burns the pack in a furnace to recover metals. Hydrometallurgy dissolves it in acid to separate the metals out. Direct recycling keeps the cathode powder structure intact instead of breaking it down, then adds lithium back into it, a process called relithiation. By the time a commercial electric vehicle battery pack is declared worn out, its cathode has typically lost approximately 20% of its usable lithium, according to Argonne National Laboratory.

The heat treatment that closes the gap

Argonne scientists tested 2 heat treatments for putting that lithium back. A single stage treatment at 650 degrees Celsius restored a used cathode to 150 milliamp hours a gram, a measure of how much energy a battery material can hold and release, against 162 for the same material never used. A two stage treatment, first at 350 degrees then at 650, brought the used cathode to 163 milliamp hours a gram, matching or very slightly beating the never used material, and it held nearly 96% of that capacity after 50 charge and discharge cycles.

First cycle discharge capacity by cathode treatmentmatched or slightly exceeded the never used materialfell short of the never used material
050100150162Never usedmaterial150Single stagerelithiation163Two stagerelithiationmilliamp hours a gram

Relithiation is the heat treatment step that adds lithium back into a used cathode. Single stage and two stage refer to the number of heat treatment steps used.

Source 1.

Show the numbers
Never used material162
Single stage relithiation150
Two stage relithiation163

Why it stays small

A peer reviewed review published in December 2025 names the reason direct recycling has not spread widely, and it is not the chemistry. A recycling line built for one cathode chemistry loses efficiency fast when fed a different one, and taking the process from a laboratory result to an industrial line remains an open problem across the industry.

The 2 facilities that actually exist

Princeton NuEnergy runs the only facility among the 5 sources confirmed to be operating, in Chester, South Carolina, at 5,000 tons a year of processing capacity as of 6 August 2025. The company plans to reach 15,000 tons a year during 2026 and describes 50,000 tons a year as a possible further step with no date attached. The company reports more than 97% recovery yield and claims a 38% cost reduction and a 69% lower environmental footprint, both against what it calls conventional methods, for its own process at that site.

Processing capacity Princeton NuEnergy reports for its South Carolina facilitycapacity confirmed operatingcompany stated plan, not yet measured
025000500005,000Operating,August 202515,000Planned,202650,000Possible furtherscale uptons a year

The middle and right bars are Princeton NuEnergy own stated plan and an unscheduled further step, not measured output. The right bar carries no target date.

Source 5.

Show the numbers
Operating, August 20255,000
Planned, 202615,000
Possible further scale up50,000

Our team's execution has been exceptional, and this facility is our next major advancement in the battery supply chain space.

Dr. Chao Yan, co founder and chief executive officer of Princeton NuEnergy. Source 5.

A second facility, in Commerce, Georgia, is planned and not yet built. The Department of Energy has awarded Princeton NuEnergy a 50 million dollar grant toward it, matched by 60 million dollars from the company, for a total project cost of 110 million dollars. Once built it is planned to process 3,000 tons a year and is expected to create 70 full time manufacturing jobs plus about 100 construction jobs.

Sources

  1. Direct Recycling of Lithium Ion Battery Cathodes, A Multi Stage Annealing Process to Recover the Pristine Structure and Performance. Montoya, A.T., Yang, Z., Dahl, E.U., Pupek, K.Z., Polzin, B., Dunlop, A. and Vaughey, J.T., Argonne National Laboratory, ACS Sustainable Chemistry and Engineering, volume 10, issue 40. Published 2022-09-26. Accessed 2026-09-01.
  2. A Review of Direct Recycling Processes for Lithium Ion Battery Cells. Łach, M., Przybek, A., Duda, P. and Bielaczyc, P., Materials, volume 18, issue 24, article 5608. Published 2025-12-13. Accessed 2026-09-01.
  3. Battery Manufacturing and Recycling Grants. United States Department of Energy, Critical Minerals and Energy Innovation office, Manufacturing Deployment Office. Accessed 2026-09-01.
  4. United States Department of Energy Selects Princeton NuEnergy for 50 Million Dollar Grant to Build Closed Loop Cathode to Cathode Facility. Princeton NuEnergy, distributed by PR Newswire. Published 2026-08-24. Accessed 2026-09-01.
  5. The United States Battery Circular Economy Advances with Princeton NuEnergy South Carolina Flagship Recycling Facility. Princeton NuEnergy, distributed by PR Newswire. Published 2025-08-06. Accessed 2026-09-01.

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