Malaysia Opens Battery Recycling Plant for 24,000 Tonnes

Malaysia is transforming thousands of tonnes of discarded batteries into a powerful economic advantage with a new state-backed recycling facility that puts the country at the forefront of clean technology.

Kumpulan Modal Perdana, a government investment fund, just invested in Econili's hydrometallurgical recycling plant in Kuala Lumpur. The facility can process up to 24,000 tonnes of used batteries annually, extracting critical minerals like lithium, cobalt, and nickel that are essential for electric vehicles and energy storage systems.

Instead of importing these expensive raw materials or letting old batteries pile up as waste, Malaysia will now recover and reuse them domestically. The extracted minerals will flow directly back into Battery Energy Storage Systems, helping stabilize renewable energy grids across the region.

KMP Chief Executive Officer Yarham Yunus emphasized that the country must maximize the value of used batteries, especially as electric vehicle adoption accelerates. He called the investment a long-term commitment to building a sustainable high-tech ecosystem that serves both environmental and economic goals.

The technology itself represents a cleaner approach to recycling. Hydrometallurgical processing minimizes emissions and pollution risks compared to traditional methods, meeting strict environmental, social, and governance standards while supporting Malaysia's net-zero emissions targets.

The Ripple Effect

This facility does more than just recycle batteries. It strengthens Malaysia's entire electric vehicle supply chain, reducing dependence on foreign suppliers and making the country more competitive in the global green economy.

Econili CEO Jayden Goh noted that the plant will create high-skilled employment opportunities in environmental technology and engineering. As Southeast Asia's EV market grows, Malaysia is positioning itself as the region's recycling hub, attracting related industries and expertise.

The collaboration between government investment and private innovation shows how public-private partnerships can drive meaningful environmental progress. With renewable energy adoption increasing across Southeast Asia, battery recycling infrastructure becomes essential for managing the lifecycle of clean technology.

Malaysia's strategic move could inspire neighboring countries to develop similar facilities, creating a regional network for sustainable battery management. The combination of environmental benefits, economic opportunity, and energy security makes this a model worth watching.