Toyota Tsusho is scaling EV-battery recycling by tackling the main bottleneck collection through its acquisition of Radius Recycling and its 100+ North American sites. The group aims to link “vein” collection and processing with “artery” supply to battery makers, recovering high-purity metals while positioning recycling as a stable-profit, lower-risk business.
Toyota Tsusho Corporation is building out an end-to-end EV battery recycling strategy, anchored in stronger collection capacity and tighter links between vehicle dismantling, materials recovery and battery manufacturing supply chains.
The company set out its approach at a press conference in Tokyo, arguing that while EV demand growth has recently slowed, the shift to electrification will “gain momentum in the long term”. It is also positioning recycling as a stable-profit business line as it accelerates development in the Global South, including India and Africa.
Why Toyota Tsusho is leaning into EV-battery recycling
Toyota Tsusho says batteries contain lithium, nickel, cobalt and other rare-earth metals that can be recovered through appropriate recycling processes and fed back into the economy as “urban mining”. The company argues that scaling this requires two things the sector often struggles to secure at the same time: advanced processing technology and a large-scale collection network.
That collection capability is now a central pillar of the group’s recycling strategy.
Radius Recycling deal: scaling the “collection platform” in North America
Toyota Tsusho recently acquired Radius Recycling Inc., a listed company headquartered in Oregon with more than 100 sites across the United States, Canada and Puerto Rico. Radius treats approximately 480,000 tonnes of end-of-life vehicles (ELVs) and metals annually and operates a “from start to finish” network covering ELV collection, dismantling and recycling.
Toyota Tsusho says its internal analysis identifies “collection” as the main bottleneck limiting growth in recycling. Toshimitsu Imai, of Toyota Tsusho, framed the economics bluntly: “In the iron ore business, digging is the most profitable. Recycling does the same, i.e., collection.”
By bringing Radius into the group, Toyota Tsusho says it has secured the most profitable “collection platform” for car recycling in North America. Following the acquisition, its recycled material transaction volume has increased to 11 million tonnes per year, which it says is close to 2% of total global transaction volume for recycled resources.
Closing the loop: “vein” and “artery” supply chains
Under Toyota Tsusho’s model, collected used batteries will be gathered and processed at the group’s recycling plant, where high-purity rare-earth metals will be extracted. These recovered materials are then intended to be supplied to battery manufacturers and other players in the “artery” (primary) supply chain.
The company describes its goal as a combined circulation model linking the “vein” (reverse) chain of collection and recycling with the “artery” chain of manufacturing supply. Toyota Tsusho says this approach can help reduce risks associated with importing resources from overseas and support carbon neutrality (net-zero greenhouse gas emissions) in the supply chain.
Operational reality: high-voltage dismantling and a likely shift to larger operators
Toyota Tsusho also highlighted the practical challenges of EV dismantling and recycling. EVs house high-voltage batteries rather than engines, and dismantling typically requires specialised knowledge, dedicated equipment and strict safety procedures. The work carries higher operational risk than conventional vehicles, and the company suggests smaller recyclers may struggle to enter or scale this activity.
“Hereafter, EV recycling will be monopolized by large-scale recyclers with advanced technology,” Toyota Tsusho’s Circular Economy Headquarters said.
For authorised treatment facilities (ATFs) and dismantlers, the implication is clear: battery and high-voltage capability is increasingly becoming a differentiator, but also a potential barrier to entry, particularly where training, equipment and compliance costs are rising.
Beyond end-of-life batteries: production scrap as feedstock
Toyota Tsusho’s circular economy plans extend beyond end-of-life batteries. The company noted that battery production generates non-standard products and scrap materials at a meaningful volume. It intends to incorporate these pre-consumer streams into its recycling business, widening feedstock sources beyond ELVs and retired packs.
Global roll-out: India model with Suzuki, Europe under assessment
Imai positioned Toyota Tsusho as a category leader, stating: “We are the only trading house to tackle car battery recycling seriously.” He added: “Toyotsu aims to become the global number one circular economy provider.”
In India, Toyota Tsusho has established a car recycling model jointly with Suzuki Motor Corporation that is mostly manually operated, supported by lower labour costs. In Europe, the company says it is considering “suitable recycling models” based on local conditions, suggesting a more tailored approach rather than a one-size-fits-all template.
What this means for recyclers
Toyota Tsusho’s strategy reinforces a familiar message for the ELV sector: control of collection is increasingly seen as the decisive lever in recycling economics, especially when paired with downstream processing capability and OEM-aligned offtake routes.
As the battery and high-voltage share of the ELV stream grows, the company’s comments also point to a potential market divide between operators that can invest in safety systems, skills and processing partnerships, and those that may be pushed towards narrower roles in the chain unless support mechanisms or collaborative models emerge.
Source: JARA NEWS December 2025, No. 214
Further reading on Auto Recycling World:
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Toyota Tsusho completes stock acquisition of Radius Recycling Inc.
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EV Battery Recycling – Needs Clear Policy
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ReJoule – Solving the EV Battery Remanufacturing Bottleneck
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EU Council and Parliament agree new vehicle circularity and ELV rules
