The Chinese battery recycling company Miracle Automation will issue up to 40 million shares to raise 300M RMB ($41.3M) of which 210M is to be invested in the expansion of the company's LFP recycling. After the expansion Miracle Automation's LFP processing capacity will be 150,000 tonnes with recovery rates of 95% for iron phosphate and 90% for lithium.
Miracle Automation is one of the leading providers of automation equipment to the Chinese automotive industry and also has a strong position in remanufacturing and recycling of vehicles. In 2017 the company acquired Longnan Jintaige Cobalt Industry which provided capacity and expertise in recycling and battery materials and with the acquisition of Shenzhen Gantai Technology the company also got a foot in the second life market. Today the company has a processing capacity of 100,000 tons of end-of-life batteries of which 50,000 tons of ternary batteries (NMC/NCA) and 50,000 tons of LFP. With the new investment the company will have a 200,000 tonnes per year recovery capacity.
The company also signed an MOU with Japanese trading house Mitsui & Co to expand the company's global footprint. The MOU states that the companies will work together in the establishment of pre-processing plants in China and around the world, jointly invest in material recovery plants and trade battery materials. The validity of the agreement is 2 years.
Mitsui & Co, one of the many Japanese trading houses, or 'Sogo Shosha', has been involved in the battery market for several years with a number of projects and investments that together build a circular value chain. The company is an investor in the German charging and second life specialist Mobility House as well as the French battery system provider Forsee Power and it provide credits to US bus maker Proterra's leased batteries. The common theme of all investments is control over batteries that eventually will reach end of life.
What makes the agreement interesting is strong fit of the players with Mitsui & Co's demonstrated strategy to get control over battery feedstock and Miracle Automation's ability to build and operate remanufacturing and recycling plants.
Recently Miracle Automation signed an MOU with Stellantis in which automotive giant will acquire 32% of the shares in a Miracle subisidiary involved in remanufacturing of automotive parts. The agreement does however also cover cooperation in EV battery remanufacturing and recycling. Also this MOU covers both China and the rest of the world.