Honda Motor Co., Ltd. and Princeton NuEnergy Inc. signed a memorandum of understanding on January 5 2026 to collaborate on next‑generation lithium‑ion battery recycling. The partnership centers on plasma‑based direct recycling and upcycling of battery scrap to produce NMC cathode active material that performs on par with virgin material.
The collaboration builds on joint technical validation that began in 2022, during which Princeton NuEnergy demonstrated that its LPAS technology can recover cathode material at a cost competitive with new production. While specific cost figures are not disclosed, the process reduces energy and chemical inputs, lowering overall production cost and improving environmental performance.
Honda will integrate the recovered material into its domestic supply chain to support its 2050 sustainability targets, including carbon neutrality and zero traffic‑collision fatalities. The MOU also aligns with Honda’s electrification roadmap that aims for 100% electric or fuel‑cell sales by 2040, even as the company has recently emphasized hybrids amid shifting demand.
The MOU outlines a framework for future commercial‑scale applications, with Princeton NuEnergy’s first commercial facility in Chester, South Carolina, slated to achieve significant annual capacity. Honda expects the partnership to reduce dependence on imported raw materials and strengthen supply‑chain resilience amid geopolitical uncertainties.
Management comments highlight the strategic fit. Princeton NuEnergy CEO Dr. Chao Yan said the collaboration “reflects a shared commitment to accelerating sustainable, high‑performance material production.” Honda’s spokesperson noted that the MOU “represents an important step forward in advancing long‑term solutions that support our global electrification strategy.”
The collaboration is expected to accelerate the circular economy for battery materials, reduce environmental impact, and provide a low‑carbon source of critical components, positioning Honda to meet regulatory and consumer pressure for sustainable manufacturing.
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