Why facility types differ so much in cost
A reverse logistics yard needs secure storage, fire protection, handling equipment and trained staff, but it does not need chemical processing. A grading centre adds battery cyclers, impedance equipment and test infrastructure. A hydrometallurgical refinery adds leach tanks, solvent extraction circuits, crystallisers, effluent treatment and extensive environmental controls, which is why its capital cost is in a different category.
That difference shapes how networks are built. It is common to run many smaller collection and grading sites close to where batteries retire, feeding a smaller number of large refineries where scale makes the chemistry economic. Our own network of 38 facilities follows this pattern.
| Facility type | Relative capital intensity | Main cost drivers |
|---|---|---|
| Reverse logistics yard | Low | Storage, fire protection, handling |
| Cell grading and diagnostics | Low to medium | Cyclers, test benches, safety systems |
| Second-life build works | Medium | Assembly lines, enclosures, commissioning |
| Integrated recovery campus | Medium to high | Disassembly, shredding, off-gas treatment |
| Hydrometallurgical refinery | High | Chemical plant, effluent treatment, permits |
The costs that are easy to underestimate
Fire detection and suppression, gas monitoring, ventilation, spill containment and separation distances add substantially to battery sites compared with general warehousing. Insurers and fire authorities often set requirements that go beyond the building code, and these can change the layout and size of the site.
Permitting also takes time and money. Environmental assessments, waste licences and hazardous substance consents can take many months, and delays push back revenue while fixed costs continue. Budgets that treat permits as a paperwork item rather than a project workstream tend to overrun.
- Fire detection, suppression and water supply
- Gas detection and ventilation
- Permits, environmental studies and legal fees
- Staff training and certification
- Laboratory equipment and accreditation
Operating costs and utilisation
Once built, a site's economics depend on utilisation. Labour is significant at disassembly and grading stages, energy and reagents dominate at refineries, and logistics costs flow through the whole network. A plant running well below capacity carries its fixed costs over fewer tonnes and struggles to compete.
This is why collection agreements matter so much to investment decisions. Secured feed volumes from fleets and manufacturers are often a prerequisite for financing new capacity, and they are the clearest signal that a region can support another facility.
Field note