This article by Mark Jensen, CEO of ReElement Technologies Corporation, based in Indiana, concerns the challenges that car owners, communities, insurance companies and recyclers are facing in the aftermath of Hurricanes Helene and Milton. It is particularly relevant to owners of EVs and hybrids, as water is the mortal enemy of any electrical system. Floodwater is a special concern for any vehicle’s electronics and electrical systems even if it was submerged for only a short time. I thought you would be interested given the widespread destruction brought by these storms. Jensen identifies some solutions for dealing with these losses -- at both the personal and business levels, and how to recover the valuable minerals and rare earth elements used in the electrified economy. Â
Main points:Â
-
Jensen walks us through the magnitude of the problem nationally and describes efforts by several organizations, including the Automotive Recyclers Association, SHiFT Vehicle Retirement Initiative, and ReElement Technologies, to provide solutions.
-
Among the statistics available thus far, CARFAX estimates that as many as 347,000 vehicles were flood-damaged between late June and late October, covering most of the 2024 hurricane season.
-
Jensen also discusses the value proposition in recycling end-of-life components. While a vehicle might be declared a total loss from water damage, the hidden treasure within includes lithium in EV and hybrid batteries; and rare earths used in magnetic components that power electric motors, brakes, sensors, and catalytic converters used in conventional vehicles.Â
-
He highlights current and projected market prices for critical minerals and rare earth elements over the next decade, and the importance of U.S. domestic recycling to cut into China’s monopoly on these materials to stabilize our domestic supply chains and the laws of supply and demand.