Car Battery Production and Recycling Plant Due Diligence

Navigator Consulting was commissioned to implement a due diligence on a lead-acid battery production and recycling plant in Baku, Azerbaijan. The objective of the investment was to build the first closed-cycle lead-acid starter batter production plant with integral recycling capacity.

 

The large majority of automotive parcs world-wide continue to run on lead acid starter-batteries. These batteries contain lead grids as well as dissolved lead in a sulphate solution, and are typically enclosed in a rigid plastic pack.

 

Upon the end of their usable life, lead-acid batteries are typically recycled. This is a relatively simple process that involves:

 

  • Manual or mechanical breaking of the battery pack;

  • Manual or mechanical separation of key components;

  • Neutralisation of sulphide solution, usually by production of ammonium nitrate or equivalent products for sale;

  • Collection and heat treatment of lead;

  • Collection and onward sale of polypropylene plastic materials.

 

Key issues include the treatment of all emissions and effluents to ensure that lead and sulphate particles are not released into the atmosphere, and that worker occupational health and safety are safeguarded.

 

Navigator implemented a due diligence on a new lead-acid battery recycling plant in Baku, Azerbaijan. This plant will have a planned capacity of 30,000 tonnes recycling per year.

 

Our responsibilities included:

 

  • Review of the national and regional automotive parc and battery supply and demand

  • Assessment of feedstock availability and average composition;

  • Review of the planned battery production equipment and factory layout;

  • Assessment of factory capacities on a 1-shift and 3-shift model;

  • Identification of potential bottlenecks or operational issues;

  • Review of EPC and equipment vendor contracts for battery production and battery recylcing;

  • Development of a priority list of changes needed to ensure the success of the investment.

 

For further information on our services in technical due diligence, lead acid battery production or other issues, please contact us.

Client:
Investment Fund

Date of Engagement:
July 2019

Countries of Operation:
Azerbaijan

Business Function:
Investment Advisory

Business Sector:

Energy, 

Industry & Manufacturing