Materials research and process development play a central role in the sustainable use of lithium in battery production. Lithium is one of the most important raw materials for the battery industry and electric mobility. More than 50 percent of the world’s lithium reserves are located in Latin America, mainly in the lithium triangle of Chile, Bolivia, and Argentina. Extraction currently takes place primarily in Chile’s Atacama Desert using large evaporation ponds. This process may lead to significant water losses and can have important environmental impacts, particularly in sensitive ecosystems and areas where water resources are also relevant for local communities and agricultural activities.

Against this backdrop, new, more sustainable, and more efficient technologies are becoming increasingly important. Innovative approaches such as direct lithium extraction (DLE) and closed-loop evaporation processes are being researched, for example, by the Universidad Católica del Norte in Chile and various Fraunhofer Institutes in Europe. To address the environmental challenges associated with increasing production, process-ecological analyses adapted to local conditions are also necessary.

The international cooperation project PaNaBat aims to establish close German-Chilean collaboration in research and development for the resource- and energy-efficient extraction of lithium. The goal is to lay foundation for a sustainable circular economy in the European battery market. Participants include Universidad Católica del Norte in Chile, through its Lithium I+D+i Center (I+D+I means Investigación + Desarrollo + innovación), and Fraunhofer Chile, as well as the German Fraunhofer Institutes for Thin Film and Surface Technology IST, for Solar Energy Systems ISE, and for Silicate Research ISC. Fraunhofer ISC is also responsible for project coordination. A key element of PaNaBat is the creation of an information and networking platform that connects cooperation partners, companies, and research institutions. Initial pilot projects are already being launched during the setup phase to test and further develop the platform and its organizational structure. Later, additional projects with external partners will be initiated to strengthen exchange and collaboration.

The project is also of great economic significance. Securing sustainable sources of lithium and developing modern recycling processes strengthen independence from raw materials and enhance competitiveness. At the same time, Chilean companies and research institutions benefit from the collaboration by gaining access to new technologies and international markets.

In addition, PaNaBat is working to develop a sustainable circular economy for battery materials such as lithium, cobalt, nickel, and aluminum. The focus is on advanced recycling processes with closed-loop material cycles and a low CO₂ footprint, as well as automated battery disassembly, new sorting technologies, and efficient processing methods. The goal is to recover the materials not in their elemental form but in a way that preserves their functionality, so they can be directly reused in battery production. The strategic partnership with Chile is of particular importance in this context, especially if process chemicals such as lithium hydroxide or lithium carbonate can be produced using more sustainable new methods such as DLE. Equally important are the transfer of expertise and the adaptation of process steps from the mining and processing industries for use in battery recycling.

Another key issue is the assessment of environmental impacts of new technologies. The integration of life cycle analysis (LCA) and life cycle engineering (LCE) into the development of new products and processes using the concept of Integrated Computational Life Cycle Engineering (ICLCE) enables the optimization of production processes in an early development phase. This allows robust and sustainable solutions to be transferred to industrial application more quickly.

PaNaBat is supported by an industry advisory board comprising German and Chilean companies, primarily small and medium-sized enterprises, which will actively contribute to the project’s implementation as it progresses. This creates a network of research and industry for international collaboration that develops concrete solutions for more sustainable battery production – to the benefit of the economy, society, and the environment in Europe and Chile.

PaNaBat – German-Chilean Partnership for Research on Sustainable Battery Raw Materials
Duration: 02/2026 – 01/2029 (Phase 1)
The project receives 450,000 euros funding by the Federal Ministry of Research, Technology, and Space. (FKZ: 01DN26002)

Project partners

Materials science is crucial for sustainable product innovation. The Fraunhofer Institute for Silicate Research ISC in Würzburg focuses on chemical materials research and develops solutions for sustainable materials as well as resource-efficient manufacturing and processing methods. A particular focus is on the development of sustainable battery materials and recycling processes. This includes, in particular, the recovery of battery materials while preserving their functionality and the development of efficient processes for a sustainable circular economy. Together with the Fraunhofer Research Center for Electromobility Bavaria (FZEB), it houses one of the largest battery research groups within the Fraunhofer Society.

The Fraunhofer Institute for Surface Engineering and Thin Films IST in Braunschweig has extensive know-how in the development and optimization of innovative coatings and surface technologies. Within the department of Sustainability Management and Life Cycle Engineering, expertise in the sustainable transformation of products, processes, and entire companies is brought together. By applying methods such as Life Cycle Engineering (LCE) and tools including Life Cycle Assessment (LCA) and Life Cycle Costing (LCC), future-oriented solutions for a wide range of industrial sectors are developed and evaluated. All stages of the product life cycle are considered, from raw material extraction and manufacturing to product use, end-of-life, and recycling. A particular focus is placed on developing strategies for sustainable and resilient raw material sourcing and resource utilization.

The Fraunhofer Institute for Solar Energy Systems ISE with its Center for Electrical Energy Storage in Freiburg offers around 1,200 m² of laboratory space for the development and optimization of battery materials, electrode manufacturing, and battery cell assembly for various cell technologies, including the electrical characterization, aging investigation and post-mortem analyses. This includes a pilot line for producing electrodes using roll-to-roll processes, as well as a highly flexible semi-automatic assembly line for pouch cells operated in an industrial dry room (ISO 7). In addition, Fraunhofer ISE has supported UCN in establishing its Center for Research, Development and Innovation in the Lithium Battery Value Chain.

Universidad Católica del Norte (UCN), through its Lithium I+D+i Center, contributes to PaNaBat with interdisciplinary research and innovation across the lithium value chain, spanning sustainable lithium extraction, advanced materials, battery technologies, circular economy, and environmental sustainability. The Center promotes collaboration among academia, industry, and public stakeholders to accelerate the development and transfer of sustainable technologies, reinforcing PaNaBat's mission of building a long-term German–Chilean partnership for battery raw materials and recycling.

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