Coherent Evaluates Strategic Alternatives for its Advanced Lithium-Ion Battery Recycling Technology

Rhea-AI Summary

Coherent Corp. (NYSE: COHR) announced it will evaluate strategic alternatives for its SHARP™ (Streamlined Hydrometallurgical Advanced Recycling Process) technology, which efficiently recovers and recycles critical metals from lithium-ion batteries. The technology achieves over 97% recovery of critical metals (Ni, Co, and Li) and offers significant cost advantages including 55% lower CAPEX, 45% lower plant footprint, and 60% lower reagents/utilities compared to common processes.

SHARP™ technology produces cathode precursors directly from battery waste, eliminating extensive metal separation steps. The process features zero liquid discharge and no toxic waste production. The company has successfully scaled up the technology, with test results showing performance comparable to pristine materials in battery applications.

Positive

• Technology achieves >97% recovery rate of critical metals
• 55% lower CAPEX compared to traditional processes
• 60% lower reagents/utilities costs
• 45% smaller plant footprint requirement
• 52% lower CO2 emissions
• Zero liquid discharge and no toxic waste production
• Successfully scaled up with proven performance

Negative

• Company seeking to divest or restructure SHARP™ technology ownership, indicating potential strategic shift
• No immediate revenue impact disclosed from the technology

Insights

Market Research Analyst

The strategic evaluation of Coherent's SHARP technology represents a significant potential value creation opportunity in the rapidly growing lithium-ion battery recycling market. The technology's impressive metrics - including 97% metal recovery rates and substantial cost reductions (55% lower CAPEX, 45% smaller footprint) - position it as a valuable asset in a market projected to reach $23.2 billion by 2025.

The timing of this strategic review aligns with increasing regulatory pressure for sustainable battery solutions and rising demand for critical battery metals. With major automakers ramping up EV production and battery manufacturers seeking sustainable material sources, SHARP's zero-waste process and superior economics could attract significant interest from strategic buyers or partnership opportunities.

Tech Expert

SHARP's technological advantages over traditional hydrometallurgical processes are substantial. The elimination of complex separation steps while maintaining high purity output is a significant breakthrough in battery recycling. The technology's ability to produce cathode precursors directly from battery waste, combined with its verified performance matching pristine materials, demonstrates remarkable technical maturity.

The 60% reduction in reagents/utilities usage and 52% lower CO2 emissions are particularly noteworthy as they address both economic and environmental imperatives. These efficiency gains could provide a significant competitive advantage in an industry where processing costs and environmental impact are critical factors.

PITTSBURGH, Dec. 12, 2024 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a global leader in materials, networking, and lasers, today announced that as a result of an ongoing strategic portfolio assessment, the company will evaluate strategic alternatives for its Streamlined Hydrometallurgical Advanced Recycling Process (SHARP™) technology to efficiently recover and recycle critical metals from lithium-ion batteries (LiBs).

With the increasing global demand for LiBs, driven by electric vehicles, energy storage systems, electronics, and other applications, the recycling of end-of-life LiBs is more critical than ever. SHARP™ technology addresses this challenge by enabling the production of cathode precursors and materials suitable for new LiB production directly from LiB waste. Unlike traditional hydrometallurgical processes, SHARP eliminates the need for extensive critical metal separation and purification steps.

The benefits of the SHARP technology include:

• High Recovery Rates: >97% recovery of critical metals (Ni, Co, and Li)
• Cost Efficiency vs. Common Processes: 55% lower CAPEX, 45% lower plant footprint, 60% lower reagents/utilities and 52% lower CO₂ emissions
• Environmentally friendly: zero liquid discharge, no toxic solid/gas/liquid waste
  

SHARP has been successfully scaled up, and its products have undergone rigorous evaluation. Results demonstrate that the materials produced perform on par with pristine materials in battery applications, confirming their suitability for high-performance lithium-ion batteries.

Interested investors are encouraged to contact Tim Challingsworth, Vice President, Strategy and Corporate Development, at tim.challingsworth@coherent.com. The company does not anticipate making further public comments regarding this matter until a material development occurs.

About Coherent

Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.

Media Contact:

Amy Wilson
Corporate Communications & Investor Relations
corporate.communications@coherent.com

FAQ

What is Coherent's SHARP technology recovery rate for lithium-ion batteries?

Coherent's SHARP technology achieves over 97% recovery rate of critical metals (Nickel, Cobalt, and Lithium) from lithium-ion batteries.

How much does COHR's SHARP technology reduce operating costs compared to traditional processes?

SHARP technology reduces CAPEX by 55%, plant footprint by 45%, and reagents/utilities costs by 60% compared to common processes.

What environmental benefits does Coherent's SHARP recycling technology offer?

SHARP technology offers zero liquid discharge, no toxic solid/gas/liquid waste, and 52% lower CO2 emissions compared to traditional processes.

Why is Coherent (COHR) evaluating strategic alternatives for SHARP technology?

Coherent is evaluating strategic alternatives for SHARP technology as part of an ongoing strategic portfolio assessment, though specific reasons weren't disclosed.

Has Coherent's SHARP battery recycling technology been proven at scale?

Yes, SHARP has been successfully scaled up, with test results showing that produced materials perform comparably to pristine materials in battery applications.