Executive Viability Abstract
This study evaluates the development of a Lithium-ion Battery (LiB) recycling facility in Antofagasta, Chile. Leveraging Chile's position as a primary lithium producer and its 'Hoja de Ruta para un Chile Circular 2040', the project aims to recover high-value metals (Lithium, Cobalt, Nickel, Manganese) through a combined mechanical and hydrometallurgical process. The facility supports the circular economy by re-integrating recovered materials into the domestic or international battery supply chain, reducing environmental impact and aligning with emerging Extended Producer Responsibility (EPR) regulations.
Return on Investment
28.5%
Payback Span
4.2 years
Net Present Value
$84,500,000
IRR Index
24.8%
## Market Analysis
Chile represents a strategic hub for LiB recycling due to the rapid electrification of the mining sector and public transport (RED system). By 2030, an estimated 25,000 tons of batteries will reach end-of-life annually. Key competitors are limited to small-scale collection, leaving a gap for industrial-scale processing.
## Technical Feasibility
The facility will utilize a two-stage process: 1) Mechanical shredding and separation to produce 'Black Mass', and 2) Hydrometallurgical refining to achieve battery-grade Lithium Carbonate and metallic salts. Power will be sourced from existing solar infrastructure in the Atacama region.
## Financial Projections
CAPEX is estimated at $45M for a 10,000 TPA (Tons Per Annum) capacity. Revenue is driven by the sale of recovered metals (65%) and gate fees for hazardous waste disposal (35%). OPEX is optimized through proximity to chemical reagent suppliers in the northern mining districts.
## Risk Assessment
Primary risks include lithium price volatility and technological shifts (e.g., Sodium-ion). Mitigation involves multi-chemistry processing capabilities and long-term supply contracts with mining operators and electric bus fleets.