EV Battery Recycling Financial Model

Financial Model for an EV Battery Recycling Center

This very extensive 20 Year EV Battery Model involves detailed revenue projections, cost structures, capital expenditures, and financing needs. This model assumes the facility recycles end-of-life lithium-ion batteries, recovers key materials (including Lithium, Cobalt, Nickel, Aluminium, Manganese, Copper, and Sodium Sulphate), and sells them to battery manufacturers or material processors.

Income Statement

1. Revenue

Breakdown by material, calculated as:
Recovered Quantity (metric tons) × Market Price per Ton × Recovery Rate

• Lithium Revenue

• Cobalt Revenue

• Nickel Revenue

• Aluminium Revenue

• Manganese Revenue

• Copper Revenue

• Sodium Sulphate Revenue

• Total Revenue = Sum of above

2. Cost of Goods Sold (COGS)

• Battery Procurement Cost (may be negative or zero if batteries are collected under Extended Producer Responsibility)

• Processing Costs

  • Labor

  • Energy (electricity, gas)

  • Chemicals and reagents

  • Equipment depreciation (allocated)

• Waste Disposal Costs

• Packaging and Shipping of Recovered Materials

Gross Profit = Revenue − COGS

3. Operating Expenses

• Salaries and Wages (Admin, management, maintenance)

• Marketing and Sales

• R&D and Process Improvement

• Insurance

• Licensing and Compliance

• Office Expenses

• Repairs and Maintenance

Operating Profit (EBIT) = Gross Profit − Operating Expenses

4. Depreciation & Amortization

• Depreciation of plant and machinery

• Amortization of licenses or intellectual property

5. Interest Expense

• Loans for capital expenditure

6. Taxes

• Effective corporate tax rate on pre-tax income

Net Income = EBIT − Interest − Taxes