Mexico Electric Vehicle Battery Recycling Industrial Facility Development Feasibility Study with Circular Economy Market Outlook

Executive Viability Abstract

This feasibility study evaluates the establishment of a state-of-the-art Li-ion battery recycling facility in the Bajío region of Mexico. Leveraging the USMCA framework and Mexico's burgeoning automotive manufacturing sector, the project aims to recover critical minerals (Lithium, Cobalt, Nickel, Manganese) through a combination of mechanical shredding and advanced hydrometallurgical processes. The facility serves as a critical node in the North American circular economy, providing a sustainable end-of-life solution for EV batteries while securing a secondary supply of battery-grade materials.

## Market Analysis Mexico is the world's 7th largest vehicle producer, with a rapid shift toward EV production by major OEMs like Tesla, BMW, and GM. The 'Nearshoring' trend is driving battery cell assembly into the region. Current market gaps include a lack of domestic specialized hazardous waste treatment for high-voltage batteries. Market growth is projected at 22% CAGR through 2030. ## Capex Summary Total estimated initial investment: $65.0M USD. - Land and Civil Works: $12M - Mechanical Pre-treatment Equipment: $18M - Hydrometallurgical Refining Line: $22M - Environmental Compliance and Licensing: $5M - Working Capital: $8M ## Revenue Model 1. **Tipping Fees:** Collection and disposal fees from OEMs and fleet operators. 2. **Black Mass Sales:** Intermediate sale of concentrated electrode materials. 3. **Refined Metal Carbonates/Sulfates:** High-margin sales of battery-grade Lithium Carbonate and Cobalt Sulfate to cell manufacturers. 4. **Aluminum and Copper Scrap:** Secondary revenue from casing and foil recovery. ## ROI Summary The project demonstrates strong financial resilience with a projected ROI of 26.5% over a 10-year horizon. Profitability is driven by the rising cost of virgin raw materials and mandatory recycled content percentages in new battery regulations (EU/US models expected to influence Mexican standards).