In a significant move toward a closed-loop automotive economy, Honda Motor Co., Ltd. and Princeton NuEnergy Inc. have signed a Memorandum of Understanding (MOU) to collaborate on next-generation lithium-ion battery recycling technologies.
The agreement aims to bolster the circular supply chain for battery materials within the United States, reducing reliance on imported raw minerals while supporting Honda’s aggressive global electrification goals.
The partnership is built on a foundation of technical success. Since 2022, the two companies have been testing PNE’s proprietary plasma-based Direct Recycling and Upcycling technology. This innovative process targets both manufacturing scrap and end-of-life batteries to recover critical materials.
A key breakthrough in their joint validation work includes:
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High-performance rejuvenation: PNE successfully produced rejuvenated NMC (Nickel Manganese Cobalt) cathode active material.
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Virgin-level quality: The recycled materials exhibit performance characteristics comparable to brand-new “virgin” materials.
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Efficiency: The direct recycling pathway is designed to be more cost-efficient and environmentally friendly than traditional hydrometallurgical or pyrometallurgical methods.
The MOU establishes a formal framework for future collaborative projects and explores the potential for commercial-scale applications. This alignment is a cornerstone of Honda’s strategy to achieve resource circularity, ensuring that the materials used in its electric vehicle (EV) fleets can be recovered and reused indefinitely.
“Our work with Honda shows strong technical alignment and a clear pathway for advancing circular battery materials,” Chao Yan, co-founder and CEO of Princeton NuEnergy said. “This MOU reflects a shared commitment to accelerating the next phase of sustainable, high-performance material production.”
The collaboration comes at a time of rapid growth for PNE. The company was recently honored with the “2025 Smart Move SC New Plant Award” for its U.S. manufacturing expansion. By scaling these technologies domestically, Honda and PNE are contributing to U.S. energy security and the stabilization of the critical minerals supply chain.
For Honda, this represents a vital step in building a sustainable materials ecosystem that supports the long-term resilience of the EV industry.
