Robots & Sustainability Automation with Matanya Horowitz

Today on Impact with John Shegerian, John interviews Matanya Horowitz, an entrepreneur and founder of AMP Robotics, a robotics company focused on sustainability automation and smarter recycling through the use of technology and robotics. Listen along as John and Matanya discuss the current state of automation in sustainability and what the future holds for robotics in sustainability!

John Shegerian: Welcome to another edition of the impact podcast. I’m John Shegerian and today, I’m so honored to have with me a very good friend and an amazing entrepreneur, Matanya Horowitz welcome to the Impact Podcast.

Matanya Horowitz: Thank you John excited to be here.

John: Matanya. I know you quite well, you’re the founder and CEO and Chief Visionary Officer of AMP Robotics and for our listeners out there who haven’t heard of your great company yet. They could find you at www.amprobotics.com. Matanya, talk a little bit about your journey as an entrepreneur leading up to the founding in the visioning of AMP and how you even came up with this great wonderful company that you’ve created.

Matanya: Well, it actually started a long time ago for me. I’ve always been interested in robotics and then questions around intelligence. So I studied this for my PhD I went to Caltech and studied robotic path planning. And while I was there I was fortunate to be exposed to some new technology called Deep Learning for those who aren’t familiar with it. This is a set of mathematical tools and algorithms that allow computers to learn from experience. So you’re able to show them something, thousands or millions of examples and they begin to find some sort of pattern and when applied to computer vision, what we’ve seen is for the first time you can largely teach these computers how to see as well as a person can and this was quite far from where the technology used to be in 2010 or 2012 and I just thought this was amazing. So, I learned some of these algorithms and I began to see that these algorithms were answering some important questions that I’d always been interested in. Ever since I first watched Transformers cartoons or Voltron cartoons when I was a kid and I thought there was now this kind of path to making these kinds of robots. So after learning these algorithms, I began to look for places where that type of technology could be useful and very quick got excited about the recycling industry. Where what I saw was that, the recycling industry sort of as it was then and largely as it is now relies a lot on manual labor. So this recycling that people put in their recycling bin goes to a facility and people stand around conveyor belts along with machinery, but largely still using a lot of manual labor to sort things by hand.

What I saw was with this kind of computer vision tool you could develop a system that would automate that process and we could use robots that had already been used in the manufacturing process in these applications. And so, it’s this sort of really–for me fulfilling journey where I was always interested in robots and Isaac Asimov and Transformers led me to these algorithms and then saw that the algorithms had this real application where I could actually play a role. So started the company, this company AMP robotics in 2014 and just been hard at work since then.

John: Okay, so when you say started I love hearing the entrepreneurs’ journey. You started it yourself, in a garage, in a bedroom, in the office? Where was the start physically, and all that other kind of stuff. Where did that happen?

Matanya: Well, you know, yeah, it’s always– it’s you know, it’s like how far back do you want to go? All the way back, you know, you could say it’s all the way back at watching that Transformer cartoon and being like, “I’m going to work on that” but the moment I saw–well, so after seeing these algorithms, I was really just kind of sitting at my desk just looking at different applications. I was looking at manufacturing applications, agriculture, all the interesting things that were happening in drones so back around 2013-2014. And so I was just looking at a lot of them and at the time as I mentioned, studying for my PhD, so it’s taking a very academic approach to it. I was doing a lot of background research in these different areas. But a friend mentioned to me actually recycling– and just on a whim I visited this recycling facility in Los Angeles called Puente Hills. It’s actually right next to this mass of landfill. So for me, I’ve always been environmentally minded but never really sort of a recycling buff as you might say. But you know, you see this landfill and I mean, it’s a mountain, it’s just humongous and it really sort of drives I think [crosstalk]

John: All trash, it’s crazy.

Matanya: Yeah. But yeah, I was really fortunate I have this older brother Benjamin, who had a bit more business experience and he helped sort of coach me and guided me on the right questions to ask and kind of coach me to the point of actually starting the company and sort of actually forming the LLC and everything like that, but you know really just happened at a desk just doing a boring academic research.

John: Okay. So here’s the fun stuff. Where did you get your—like, who put the first dollar in? Was it you? Was it Benjamin? Was it Mom, Dad? Or did you have an outside angel?

Matanya: [Laughs]

John: How did that happen?

Matanya: So the first dollars were definitely me but it wasn’t very much it was you know, a couple hundred dollars. I think opened the bank account.

John: Doesn’t matter. Doesn’t matter! You’re the first dollar in. That’s great!

Matanya: Yeah. The first dollar counts. Yeah.

John: Yeah. First dollar counts.

Matanya: Very quickly we had –some part of the reason I was able to start the company was I got a grant from an [inaudible] National Science Foundation something called the SBIR and so although the first couple hundred dollars for me, which really went to like buy market reports and buying a couple pieces of equipment to play our computer vision. We were fortunate to get a significant grant from the National Science Foundation and that let me actually bring some people on.

John: Okay so wait a second, so from 2014 to when? did you get that grant because I mean, to get on their radar and to get them to give you a grant that takes, that takes time and work and also and I know you’re a genius because I know you well enough and long enough. So [crosstalk] how long was that process? from ‘14 to the SBIR grant?

Matanya: Yeah, We got the SBIR grant right at the beginning of 2015. And so 2014 was doing the background research, applying for the grant, putting together all the details for that, coming up with some very crude proofs of concepts. I actually remember having the first–I started with construction and demolition material. As you know, the material that comes out of basically demolished buildings, so I had like a brick on my desk and I was taking all these photos of bricks and building at this data sets so the machine could learn bricks and I just remember being like, I spent weeks my life on this one brick really focused on it. But all that sort of went into this application for the for the grant.

John: Got it, and that grant was for how much? How much was that grand for?

Matanya: That one was a hundred and fifty thousand dollars and I remember thinking at the time. “Oh my gosh, we’ll never use up all this money.” That is more money than we will ever need. But yeah, it’s just a wonderful program the federal government has for its– specifically for small businesses that are doing sort of high-risk or creating a sort of high technology somewhat risky products but that are in the national interest. So recycling and robotics kind of fit that bill.

John: So it was like real incubator accelerator type money to help you get going and move your idea forward. That’s so exciting.

Matanya: Yeah, and they had a fantastic program for like sort of coaching you and making sure you understood sort of market need and like how to sort of some important questions around forming your business plan. So I’d like to think that– so at this point the company has over 50 employees. We’re doing great. We’re manufacturing here in the United States and I’d like to think that we’re sort of emblematic of what the government is trying to do there. Where you sort of give a little bit of seed funding, get an idea off the ground and then grow it into something big so hopefully the NSF is– which is the government agency who administered this. So hopefully they’re happy with our progress.

John: Well, there’s a shout out for the NSF and I’m sure they are and it also is really a real education for entrepreneurs or wanna be entrepreneurs that our listeners that you don’t need 50 million dollars or venture capitalist or a rich uncle to start an impactful, transformative company like yours is. You did it with your own cash. You got the NSF to back you. So let’s talk about the journey between the NSF Capital coming in. And today, first of all, I know you’re a California boy, but when did you end up in Colorado? And did you start this business in Colorado? Is that where it started? Because I know that’s where you are now.

Matanya: Yeah, so I largely–I was born in California, but I mostly grew up here in Colorado. Went back to California for my graduate degree. And you know, it was an interesting question where did I really start the business. The obvious choice was the San Francisco area where a lot of this kind of technology is being developed now. What I saw was basically every dollar would go further in Colorado and at least I knew Colorado we were also considering the area around Oregon but I don’t actually know if that was the most efficient way to go. Knowing what I know now sort of Bay Area ecosystem is just incredibly powerful for accelerating startups. So we may have moved quicker if we were there but working in Colorado our money sort of stretched pretty far in that was really important.

John: Well, that’s–and then you hired, with this NSF money you hired how many employees or how many people to help you move your vision forward?

Matanya: Yeah, we hired two. Their first day was, January 1st, 2015. We were pretty small for a while. We stayed at three for most of I think the following year eventually got a couple more guys. For a long time we were sort of a team of five to seven honestly, I think the stage we were at when I met you John but, just kind of Scrappy Kids, Barbarians at the Gate. Well Barbarians at the Gates probably, but yeah just trying to see if we could find something that would work.

John: And for and for our guests who just joined us and our listeners have my good friend and impact entrepreneur the founder and CEO of AMP robotics with us with Matanya Horowitz. He’s on–to learn more about Matanya’s great company AMP robotics. Go to www.amprobotics.com. When did our common and great friend and one of the greatest facilitators in America connect us, Ron Gonen. When was that? It was at in 2016 or ‘15?

Matanya: I think that might have been in mid-2016. I think that would be right.

John: That’s right.

Matanya: Yeah, Ron is just such a force of nature and I’m so grateful that– you know, he was such a powerful connection with your team at ERI so early on probably earlier than we deserved but we’re grateful for it.

Matanya: Believe me, we’re grateful for it too and that’s why Ron always gets all the kudos from me and he’s one of my great friends and been one of the greatest supporters of the whole movement of circular economy and the sustainability revolution. He’s–without asking for anything in return Ron selflessly introduces wonderful people and puts them together and I’m just really so honored and lucky that he introduced us. You were– like, you said a young group of barbarians at the gate when I met you. Walk me through a little bit your aha moment, when did you know your vision of transforming the recycling industry with your great products was going to work? When did you get the beta’s out and when did you know, “aha, this is really going to be what I wanted it to be if not bigger.”

Matanya: I think there are– I’ll say kind of two moments. So the first one was, so we installed this first robot with the support of a group called the Carton Council in a facility in Denver and we got a lot of support from that facility. The facility’s name is Alpine. There was a gentleman there Brent Hildebrand who was just an incredible advocate for us. So–but they let us install this first robot in their facility and it didn’t work at all. It worked great in the lab and then once we put it in, it was just oh my gosh, like disaster after disaster.

So we were struggling, working in this place. It gets real cold in there. We’re doing it in the winter. So we’re like, trying to program on these things with gloves on trying to get the robots to actually work. So we’re working in the facility with all these other sorters. The robots at the end of the line, they’re always actually encouraging us because they could see all the work we were putting in and then one day we actually got the robot working and it started picking and it was doing out right against all odds and we’re so excited and the sorters who are hanging out with us. They were all excited for us too and they’re like clapping. They’re like, “Yay! Way to go!”

John: Everyone’s cheering.

Matanya: Yeah, but just seeing it work, it was like, okay, there’s a lot there’s a long journey ahead of us. There’s a lot of work to do. It broke down like 15 minutes later. But you know, [Laughs] you could see it like, this is gonna work, we just need to get it right.

I think I think the second moment was actually at a conference. There’s a show called the Paper & Plastic show and I was on a panel talking about robots. I think this was in 2017 and the questions I started getting from the audience weren’t–sort of like, “Is this even realistic?” They started to the really specific application questions and I could just see that the audience had really sort of been chewing on this long enough and now had conviction.

What was exciting to me is they were excited about the potential for the vision system even without the robot and its ability to sort of monitor what’s happening in these material streams. So there, you could start to see the broader excitement and the broader scope of what we could do along with the industry acceptance. That was also a big moment at least for me personally where kind of migrating from the guy on The Fringe to saying like, “Hey, I think you could do this.” to like, “Okay, this is happening and people are excited about it.”

John: That is awesome. So you started moving the ball forward. When did you sell? Sell–no more beta. Sell your first unit and how many you’ve sold to date or whatever you could share with our listeners. Like, how big has it gotten from your first unit sold and check in the door to today?

Matanya: So actually we were very fortunate. The first one we sold was at the end of 2015. I got– installed at the beginning of 2016. And that was this project with the Carton Council. It was a sale in the sense that they paid money, but they were the friendliest possible customer and really worked with us on payment schedules as this thing didn’t really work.

John: They were collaborative purchase. Great.

Matanya: Yeah, very, very collaborative. And I’d say in 2016. We started getting—no, early 2017. We started getting some sales that were just sort of, sales that were directly with the customer or more emblematic of I think sort of a typical sale. And yeah, I think that’s how long it took. It sort of took a full year of just brain damage in the facility. At this point, we sold definitely over 50. I think we’ve sold over 60 of these systems all around the world. We have them in Canada, United States, Japan. We have a facility in Florida, Single-stream Recyclers where the facility actually has 14 robots. To our knowledge that’s the most robots in one place or at least in recycling. And yeah, we’re expanding all over and it’s been very rewarding to see the industry demand and how all of this is kind of getting picked up.

John: Well, for our listeners out there, truth in advertising and broadcasting. ERI, the company that I co-founded has purchased units from Matanya and we’re his greatest advocate. They work amazingly and they’ve definitely helped our business become more efficient and help transform our whole ecosystem in our Indiana and Fresno facility so I could speak from personal experience that your technology is world class and you know our team of Engineers went out and did a comparison against all the other competitors y you have out there and they always came back and said not only is your team the best to work with but your technology is the best technology. So. I mean that’s kudos to you on every level not only inventing and creating the best technology but also making the nicest team to work with that’s most collaborative and supportive and that goes a long way too. Matanya. The people skills that your team has and what you’ve created in terms of the culture and the DNA of your great company AMP robotics.

Matanya: Well, thank you John. I think that it kind of goes both ways. So to my knowledge, ERI was the first one to look at deploying robots for these sorting applications. And I think before we took on the project, it wasn’t sort of clear that it would work. Of course, we were testing things and like that, but your team was really sort of happy to get in the weeds with us and say, “Okay like, what do we need to do to really make this work? What is the best place to use this? How do we need to customize our application for this?” And so it was a very nice collaboration and I believe that was the first sort of way sorting application in the world. And that’s what it took is sort of these two teams that were tightly aligned on making it all work. So, I wish I could say that we just came in and dropped it in and sprinkled some magic on it, but no, it really was a collaboration.

John: But that’s okay because that’s how all the best things happen in this world anyway, collaboration and people skills. Especially in this world that leans heavily on technology. The fact that people skills can help us work through any hiccups, rough spots or anything else you hit along the way which are always inevitable with a.) new technology and b.) new industries like we are and what you are it really made for great success story and we’re honored to be part of that success story, but we’re also cheering you on otherwise, of course.

I want to ask you about being an entrepreneur and some things that you’ve learned. First of all, now that you are really in the recycling industry and also the artificial intelligence and robotics industry, what are some of the macro trends that our listeners can grab onto that you see already occurring but going to be here for years to stay, a trend that’s going to be here for the next three to ten years. What are some of those trends that you see moving forward?

Matanya: There’s one trend that actually really excites me for a couple different reasons, but that’s really this consumer focus on the responsible diversion of material and this is most acute I think in plastics, but you see the same attention–and you’re more of an expert on this than me but like in electronic waste. But also these other material streams whether they’re metals or whatnot and I think that’s actually a very positive development. I think a lot of people are sort of cynical about you know, “Can I make a difference in recycling?” “Is this stuff even recycled that I’m putting in the bin?” and the reality is, yes. That most of these materials you’re putting in the bin usually– unless you’re putting something that’s sort of not processed or it’s a contaminant, the stuff is getting recycled but there’s a huge push by brands and consumer packaged goods companies. Basically to meet the demand of all of these consumers who are demanding that packaging is sort of created in a responsible way and dealt with in a responsible way. That’s leading to these brands creating all of these high goals for post-consumer material to be used in their packaging and for the recycling industry that’s massive. Having demand for recycled material allows the recycling industry to stay healthy and grow. It’s both a very good story in terms of a positive trend for recycling and of course equipment makers like ourselves. But I think an important validation of the energy that consumers put into making these decisions and participating in recycling programs, I think most people are focused on the doom and gloom of the China situation and that certainly has a big impact. But at the same time, the attention that the sea turtle with a straw up its nose and all of this pla– the garbage island and the Pacific. All these things are translating to meaningful changes in the industry and that’s good for us, but it’s also good for me as a consumer myself.

John: With regards to your application of robotics and artificial intelligence, apply to the recycling industry, with regards to that met those macro trends and the circular economy behavior really taking on a huge life now in the United States and around the world, the application of artificial intelligence robotics. How do you see that? Is that a macro Trend that you see is here to stay and is only going to grow in the next seven to ten years?

Matanya: Something that’s really exciting for us is that, so we–I’d argue we pioneered the use of artificial intelligence for the use of Robotics and there’s sort of a key problem we’re trying to solve for the recycling industry, which is this issue with sorting. So sorting requires a lot of manual labor, a lot of expensive equipment and if we can lower the cost of doing that then more material will be sorted and so recycled, but that’s not the end of the story. One of the other issues at the industry’s really grappled with is, around the purity of the materials that they sort out. So, if I’m selling you number one plastics how many pieces of paper are in there? How many aluminum cans are in there? Things like that.

There hasn’t really been a means to understand how pure these material streams are, but artificial intelligence because we can identify this material now. We can basically count all that stuff and say, “Hey this number one plastic bail is 98% pure, the paper is 99% pure.” and really bring clarity to the industry and transparency and for your listeners who focused on the situation with China, a large part of that was excess contamination and all of these material streams. So now, artificial intelligence starts to become a solution to that provide this transparency that the industry’s been looking for in terms of material quality.

There’s also other things that are going on with AI being used for other types of sorting equipment and it’s just, it’s quite exciting. So, all of these trends fit nicely with the capabilities that we’re building and honestly as I sort of tried to guide the direction of the company, that’s what I wanted to do—what I want to do is make it so that the way AMP robotics would succeed is if we could make the recycling industry succeed. So our incentives are sort of aligned with what I’d like to think is the right thing to do. The fact that we’ve been able to do that, personally, is exciting for me, but AI to solve all these challenges industry has is the biggest part of that.

John: Matanya, you’ve had a fascinating journey just in these six short years. You went from your own couple hundred dollars being put in on opening bank account to the NSF giving you your first funding. I don’t want to also leave this episode without sharing your great win of late last year you got Sequoia to invest in your brand. The people who, were I think the first money behind Google. Talk a little bit about that journey going from a real bootstrap entrepreneur to getting one of the most worldwide known venture capitalist groups to back your vision and your great company.

Matanya: That–so yes, as you mentioned we closed our series, a funding around that Sequoia LED in I believe it was about in November of last year. So November 2019. That was an incredible moment for us. What was really nice, I mean what was incredible for us was that Sequoia really does its homework. The partners weren’t necessarily familiar with the recycling industry, but they dove really deep, they were calling our customers making sure that they really understood. The thing that kind of came through and they let me know that it came through is our customers were such big advocates for us. So, thank you to your team John and to our other customers. We honestly couldn’t have gotten it done without the support our customers. But what’s exciting about it too is, as you mentioned Sequoia is a very successful Venture Capital firm. What they look to do is build category defining businesses, so Google, Apple, other companies like this. So they really take a big picture of you. What I found was, when I went out to raise funding, a lot of investors really weren’t interested in investing in a recycling business for I think reasonable reasons, right? They would read the newspaper and say, “Hey, recycling is dead. I just read it in the New York Times.” and you know you have big players you have a lot of small players like this sort of mismatch in sales opportunities that makes sort of getting interaction pretty hard. But what Sequoia saw and what our other investors also saw as well was that, if this technology could be successful it could solve really meaningful problems in the recycling business and more broadly in the waste business. And that business is large. You think about all the landfills and hauling and everything like that. So if you’re able to solve meaningful businesses, that industry looks different than it looks today and that is exciting to them. If you could build something that really solves recycling and makes that sort of the main way you deal with material. That’s an incredible thing. That’ll be a great business to be made. You’re doing the right thing. And that’s what Sequoia saw, our other investors saw and that’s what I see. And so it’s just wonderful to find backers who are so tightly aligned with what you want to do. John, you’ve raised more money than I have, but I think you’d probably agree like being aligned with your investors just makes life so good and I can just see now given this sort of blessing I have if you’re not aligned with your investors how hard that would be. So it worked out very nicely.

John: That’s awesome. And before we have to sign off Matanya, any pearls of wisdom or lessons learned you want to share with our entrepreneurs or budding entrepreneurs who are listening today?

Matanya: I’d say, the thing that’s been most important to me. It may not sound positive, but I think it is but for the entrepreneurs out there. There really is a grind. There’s a lot you have to do that you’re not looking forward to and your sort of the boss so if you don’t have somebody– some mechanism in place, you got to just grit your teeth and do that. And so building up sort of the mentality to sort of lean into the grind of building a company is just essential, but they should know they’re not alone. It’s hard for everybody discouraging all the time and or not all the time but there’s plenty of discouraging moments but you just got to run into the wind and just make it happen anyway. So for those out there who are struggling, you’re not alone, but that’s an essential skill in making this happen.

John: It’s really true, making it happen. Any shameless plugs you want to give before we sign off?

Matanya: Sure. I’ll give one to the company. So, as I shared at AMP, we’re growing quickly. We’re selling robots all over the country. We have some very happy customers and a lot of repeat customers ERI is one of them. So, for anybody who’s in the recycling business, who is interested in automating? We’d love to talk to you and you can reach out to us at AMP robotics and also not only those who are interested in sorting but also in waste characterization. But yeah, thanks for the plug John and I really appreciate you inviting me to be on your podcast. This is really exciting and you’ve had a fantastic lineup in your life of podcast. So thank you. It’s an honor.

John: It’s an honor for us to have you on. Matanya Horowitz you’re transforming the recycling industry and making a huge impact to the planet. We’re honored to have you with us. You’re great friend. You’re a great entrepreneur and you’re a great blessing to the entire Earth. Thank you again for joining us today.

Matanya: Thank you John, you are too.

John: All right.

Matanya: Right. Take care.

John Oppermann of Earth Day Initiative Talks About Earth Day 2020

As Earth Day 2020 fast approaches, it’s important to know how you can play a role to improve the planet we live on not just one day a year but throughout the entire year. Listen along as John Shegerian is joined by Earth Day Initiative Director John Oppermann as they talk about increasing awareness around Earth Day and sustainability across America.

John Shegerian: Welcome to another edition of the Impact Podcast, I’m John Shegerian. I’m so honored to have with us today, John Oppermann, who is the Executive Director of the Earth Day Initiative. Welcome to Impact, John!

John Oppermann: Thank you so much! Thanks for having me.

John S.: Before I go on and we do a little Q&A here. I just want to share with our listeners who you are, John. You are the Executive Director of the Earth Day Initiative, and you manage not only the Earth Day Initiative but also all the year round programs in classrooms and other high school student activities that are involved with that, and you have a tremendous education background at Gerogetown, and a Harvard Law Degree. So I just want to share with all our listeners all the great things that you are doing and your background a little bit. For our listeners out there, John, can you tea up a little bit what the Earth Day Initiative is.

John O.: Yeah, absolutely! Thank you for the plug. Earth Day Initiative, we are a non-profit environmental organization. We have been putting together large scale Earth Day events for many decades, and we have year round programs which you are lauded to, which include a sustainable food education program, a green buildings publication, a renewable energy campaign, all of this things that we do throughout the year to connect people to things that they can do to green their lifestyles or different environmental causes, campaigns, sustainability initiatives. We work at a lot of schools and offices to engage their communities around sustainability and being a part of this sort of this positive impact on the environment and we’re gearing up right now for Earth Day 50 which is the big anniversary.

John S.: For our listeners out there that want to learn more about the Earth Day Initiative, they can go to www.earthdayinitiative.org. Tell me something a little bit about John Opperman that nobody’s ever heard before. Just give a little bit fun factor, some little snippet about you that typically is not put out there in a regular interview process.

John O.: Let me think about that. I guess, something related to work still. I think I am very much as a person-oriented around what makes humans happy. I think that I really bring that to work,where thinking through programs like what is gonna actually make people as humans, treat people as humans, what’s gonna make them happy and that’s incorporating things like being social, exposure to nature, physical activity, stuff like that. I as a person, am very focused on what are all these things that are going to make John, as a human, happy and I think that I try to incorporate that into what we are do in the workplace and also with our campaigns. It’s like don’t make things such a struggle work, work with people being humans rather than against it. I’m a very big physical activity enthusiast so I go to the gym every single day without fail, because I know that’s gonna make me happier as a human.

John S.: That’s really important. In this world that we’re all enjoying the technical revolution, you’re saying, it’s almost like a throwback theory. Get more physical, get more human, get more social and get more outside to your inside.

John O.: Yeah, absolutely!

John S.: That’s great.

John O.: I think that in so many ways we’ve actually moved away from just treating ourselves as humans, as this animal that is a homo sapien, where we evolve for many thousand of years. Enjoying things like sunlight and physical activity and social connection. And then we place a lot of value in things like income and productivity, typing in numbers into computers but that’s not really what humans are built for, so worked with the human rather than against human nature and I think everyone’s much more productive and happier.

John S.: If you would say, you want to elevate it with somebody today and they asked you about what you do and you said, you’re the Executive Director of the Earth Day Initiative, and that person asked you, what’s your core mission there. What would you say is your core mission there John?

John O.: I think the core mission of Earth Day Initiative is to really empower people to make a positive impact for the environment. Earth Day is the one time every year that even a non-environmentalist wants to do something and environmentalists really want to do something more. Providing those answers people come to us constantly, especially on Earth Day but also throughout the rest of the year because we are Earth Day Initiative and they asked what’s one thing I can do to make a positive impact. What would you advise people to do to green their lifestyles so that they have a better impact on the environment, or lower carbon footprint, or environmental footprint, and our mission is to connect them to those things. Saying, here’s something you can do, here’s something that you can do to make a positive impact either today or on a regular basis, these are things that you can do that will really hope you get that impact of being part of the solution rather than just dealing like you’re part of a larger environmental problem.

John S.: They burned 2020 now and we’ve come a long way with regards to the environment compared to 15, 16 years ago, maybe even compare to 5 or 6 years ago. But as we see with the controversy that surrounds great young activists like Greta Thunberg and other great young people, and the message they’re putting out. We still have a long way to go, John. What are the top two or three things that you could share with our listeners that you feel can make the greatest impact today and what people do in their daily lifestyle activities?

John O.: Yeah, absolutely! I think there’s obviously a lot of things that people can do to make a positive impact that in my experience people are very overwhelmed, because you see like a buzz feed style list like here’s 50 things that you can do to green your lifestyle but how do you even begin, just sort through it. We try to make things very simple so friends at earthdayinitiative.org, we have take action items and at the top and throughout the website we’re advertising. There’s one thing that you can do and the big thing that we push people into is switching over to renewable energy. There are a lot of ways that you can actually support renewable energy and or switch over in your own life even if you rent, even if you lived in an apartment building, people often assume that if you lived in an apartment or you rent, that you don’t have capacity to switch over to renewable energy because it’s not like you can just go up and install solar panels on your roof. But friends sends through models like community solar, you can become a part of a solar facility in your community.

We used New York as an example, we worked with partners were partners building a 2 acre rooftop solar facility on a warehouse in Queens. Anyone in New York can sign up to lease a portion of those panels and then you get paid by the utility provider for the electricity generated by those panels that pumped backed into the grid. The payment that you’d get from the utility provider is actually greater than the lease payment that you’re paying so make money off of the whole project and you get to be a part of this initiative of bringing more solar energy to New York City. Switching over to renewable energy is really critical if we’re gonna tackle about climate change and there are ways that individuals can be a part of that solution. So in earthdayinitiative.org, we provide ways for you to do that no matter where you are in the country you can be a part of the solar project in New York. You can switch your utility bill over to renewable energy and other ways that partners like Arcadia, you might wind up paying a little bit more money in some cases, you might wind up paying less, but you can really easily in a matter of minutes become a part of the solution. It’s not even a habit change or behavior change, we’re not asking you to change your daily lifestyle with this. You do it one time and then every month and you don’t even have to think about it. With your regular utility bill you can be a part of that positive impact.

Another example that I am a big proponent of is, food waste and what you can do around food waste. For instance, a lot of people don’t realize that food expiration dates are largely arbitrary. In some cases food producers try to do their best to estimate the best buy or sell by date but in a lot of cases they are completely arbitrary. There are studies for instance, NRDC, Natural Resources Defense Council and Harvard Law School, looking at the food labels around expiration dates and the fact that there’s no national guideline for this, there’s not a federal regulations around what they need to say for expiration dates. Some states have regulation around this, a lot of states don’t really have regulations. So it means that it just a patchwork of expiration dates that sometimes we’re too conservative, they get people to throw away food way before they need to.

What we advised is we have evolved for a thousands of years, that’s what I was talking about, treat yourself like a human, like that and then there you are, you have evolved for thousand of years to know if food has gone bad. You can trust your nose and your eye to identify, “has this food gone bad, has this yogurt, has this meat that I am about to eat gone bad?” You can generally tell, it’s gonna smell, it’s gonna look bad, it’s gonna be funky, it’s gonna be off if it had gone bad. You can really trust your instincts rather than throwing away food that a lot of times people were like, “owf dead, sell by date is passed I’m throwing this away” but you can trust your own instincts and if you’re really uncomfortable doing that, pay attention to when those labels are coming up where the expiration date is approaching, so go donate that to a local food pantry before that expiration date hits so that you are not throwing away food that is otherwise perfectly good. I think you asked for three things that you can do so, round it out.

John S.: Sure.

John O.: One thing that I have heard people call this is, be a climate communicator. One of the best things that people can do, studies show, is communicate their concern about climate change and the need for action to their communities, So to your friends, to your family, post on social media, right a letter to your local newspaper, get a little piece placed in your community newsletter, whatever it is, invite people to go on a climate strike, invite people to get engaged with climate activism.

Being a climate communicator is way more effective than people hearing about studies about climate change and doomsday scenarios, or reading an articles about it, or anything that is impersonal. It doesn’t really have the impact that has, if you’re communicating in the same way that like, product promotion, it work way better if your friend, or your sister is like “oh I just try this new product and I really love it, you should try it”. Same thing with climate, people with get more involved and really push the needle in terms of demanding climate action, if it is actually the people they know that are advocating for this. Being a climate communicator, I think it’s hugely effective.

John S.: I love it. You mentioned earlier about one of your secret superpowers being exercise. How about time or health besides, exercise which is critical but I’m just like you. If I miss one exercise, it all goes down hell from there. How about a time hack, how do you make the most out of your time? You’re a busy guy, you do a lot of things, there’s a lot on your plate as Executive Director of the Earth Day Initiative. How do you juggle at all, John? Do you have a pearl of wisdom or a hack you could share with our listeners?

John O.: Yeah. I think in terms of time management I know so many people are incredibly busy there. Friends of mine who are even busier than I am, but really going to an Earth Day events that’s just crunch time where I feel like go, go, go all of the time. I think one thing that I have found very helpful in terms of time management is segmenting off some calls and meetings so it’s saying, “okay, I’m gonna set a side these two or three or however many days a week, you need for”, I’m gonna channel as many as of my phone calls and meetings unto just those days, so those days are just back to back to back phone calls and meetings. But then you have other time that you can set aside and say “These are the long term projects, these are the emails, I really need to take time to draft, these are the presentations I need to put together”. On those other days, where you’re not disrupted by the phone calls and meetings, phone calls and meetings, which really I think throw people off where they can’t just sit down and have that productive time at their computer at their desk. Segmenting it off and being protective of that schedule, I think has made me an incredibly more productive person.

John S.: That’s really smart. I like that. Best advice for our listeners that are listening to you and say, “you know what, I just don’t want to sell wiggets anymore, I just don’t want to practice law anymore, I just don’t want to”, and you could fill in the rest of that sentence. “I want to join the movement to make the world a better place. I wanna, either be John Oppermann one day or worked with a John Oppermann one day”. How do people change journeys once they’ve started? A lot of people feel that “Ah they’ve gone down a certain role, they’ve planted themselves and the dirt’s there, they’re growing as a plant and they can never replant themselves”. Can you share a little bit of your perspective on how people can move their journey around to go follow something that really excites them as opposed to something that just pays the bills?

John O.: Yeah. I think probably the best thing that I would recommend to people who are really looking for a certain shift in career or moving into a space that maybe they care more about than their current job, it’s just talk to as many people as possible. When I was going to law school, I was determining sort of what the focus of my Law School time was going to be, and I, before going to Law School, talked to a lot of alumni at my Law School who were working in environmental policy and climate change work, and climate activism. They had gone to my Law School and used that degree to move into those areas and I just talked to them for advice. I said, “do you feel like it was helpful going into a Law School, how’d you get into this, like what is your career path getting to where you are now?” I think having all those informational interviews and conversations with people, in some cases that could be volunteering with different organizations that you’ve care about, having conversations about how can you support them, then you kinda start to figure out, “okay, where do I see myself fitting into this, where the value add that I could provide here” and I remember having those conversations, this is many many years ago at this point.

Having those conversations has a relatively young person coming to this people who are very accomplished in their careers and people were so incredibly helpful. People really took time to meet with me for coffee, have a phone call, really provide guidance and just advice and I thought myself, I want to do that someday that these people took time out of their schedules, they don’t know me, they didn’t need to have a conversation, I had no power, there was nothing I could offer them at the time. But I found people to be really overwhelmingly willing to help and just chat through whatever it is they do, and provide that guidance and I think that is really helpful because then those people can let you know. Some opportunity comes up and they can help kind of shape your idea about how do I provide value in this space like, where can I see myself moving into it.

John S.: I love it. That’s great advice for our listeners out there that want to connect to with you, John. How do they connect with you?

John O.: Yeah. I think the best thing is to look me up on LinkedIn, John Oppermann at Earth Day Initiative or go to earthdayinitiative.org, call or email any of the information there and the message can get passed along to me.

John S.: Shameless plugs before we sign off here, we have to say goodbye were bumping up against the hour and I want you to share anything that you want to promote with regards to all the great work that you’re doing John.

John O.: Yeah. I would just encourage everyone for Earth Day 50 to do something whether it is showing up, speaking up or taking action that’s kind of catch phrase we’ve got. Going into Earth Day 50, you can show up to events, you can speak up to those empowered by going to our website and contacting your public officials about moving things in a positive direction, or you can find out all about on how you can take action in your life. If you go toearthdayinitiative.org I would just encourage everyone to not let this big landmark anniversary pass by without doing something to engage around the environment in this really critical time that we have on our climate action.

John S.: You know John, I really appreciate your time today. I know our listeners do as well. I am always humbled to have someone who is wonderful and a special as you on the Impact Podcast. I just want to say thank you again for joining us and I want to share for our listeners that John Oppermann is living proof that all of us can make a positive impact in our community and in the planet. Thank you again, John.

John O.: Thank you so much! Thank you so much for having me.

Solving The End-of-Life Lithium-Ion Battery Problem with Ajay Kochhar

Ajay Kochhar is Co-founder, President and CEO of Li-Cycle Corporation, an industry leading lithium-ion battery resource recovery company. As President and CEO, Ajay is responsible for all strategic and business aspects of the company.

John Shegerian: This edition of the Impact Podcast is brought to you by ERI. ERI has a mission to protect people, the planet, and your privacy. And is the largest fully integrated IT and electronics asset disposition provider and cybersecurity-focused hardware destruction company in the United States and maybe even the world. For more information on how ERI can help your business properly dispose of outdated electronic hardware devices, please visit eridirect.com. 

John: Welcome to another edition of the Impact Podcast. I’m John Shegerian and I’m so honored to have with us today, my good friend, Ajay Kochlar. He is the president, CEO, and co-founder of Li-Cycle. They’re doing really important things with Lithium-ion batteries in the recycling space, but I just want to introduce you to Ajay Kochlar.

Ajay Kochlar: Awesome. Hey, John. Great to be here.

John: Hey, it’s an honor to have you today. And I know you and I are still living under the tragic circumstances of COVID-19. You’re up in Canada today. I’m here in Fresno, California. But I feel like we’re literally in the same room. We had a great offline conversation before starting this interview and it’s just really an honor to have you on with us today Ajay.

Ajay: My pleasure, John. I’m looking forward to telling our story and what we’re up to and in our worlds, I’d say overlap quite a bit. So looking forward to the conversation.

John: Hey, you know before we get talking about your company and for our listeners out there that want to find Ajay’s company, you could go to li-cycle.com. There’s a ton of information on it and it will give you a deeper dive into the importance of lithium battery recycling and why we need to do that for the planet’s sake and for all of our sakes. Ajay, going a little bit into your background first, how did you even get here? You and Tim created this wonderful company. Share for our listeners and our viewers out there your journey.

Ajay: Yes, happy to do it, John. You know, it really segues well into Li-Cycle’s focus. So, you know myself and Tim Johnston, who John just referred to, we’re the two co-founders of Li-Cycle. We actually are both engineers, by background. So I’m a chemical engineer, Tim’s a mechanical engineer at CFA. And we spent our careers before this is really the chemical industry that produces lithium, nickel, cobalt that go into lithium-ion batteries. So everything from our devices all the way up to, of course, now the exciting segment that people know about, electric vehicles, and much more. So been very battery-focused for a long time. While we are in this phase, you know, we were building large projects, executing on these chemical plants, early-stage, to building them, to when they get a commission, and then operate. We would often get asked by our clients and our partners, hey, what’s going to happen to all the batteries that we’re helping supply materials to, is the one part of the question. And the other part which a lot of folks sometimes may not know is, hey a battery in any of these technologies is pretty complicated. You have a whole range of materials in them. They’re highly refined and it’s the culmination of a very long supply chain that gets there. And the question is what’s the role of recycled material? You look at some very mature commodities in industries like aluminum and copper. That has continued to be innovated in and really improved…

John: Right.

Ajay: And it was done well. But in the cases of materials like lithium, nickel in a battery sense, and cobalt in the battery sense, there hasn’t been as much innovation to get back that material into the battery again. So that’s really what got Tim and I on the track. We started reading a lot about that space. And what was unsatisfactory to us is back to first principles. When you look at what’s in a battery, it’s a highly refined material. This is the culminating output of a big supply chain and a lot of very complicated processes. But when you try to then re-extract the materials from that, well then what’s the best way to do it? What we were finding in the market is it was just so common to see this pyro-thermal processing approach is dominating the market. And for us, coming back to first principles, where does pyro, pyro means high-temperature processing.

John: Okay.

Ajay: Where does that come from? It comes from mining and we need to take stuff out of the earth and sometimes it’s too expensive to start trying to chemically process it. So in the mining industry, they use pyrometallurgy to really just make things easier and cheaper to process to convert the form. But in the case of a lithium-ion battery, you don’t need to do that. It’s already highly refined. It’s very amenable to very different processing. So that was our story. It was basically born, like many entrepreneurial stories, out of frustration and dissatisfaction, but a desire to make a change. And we left our careers to start Li-Cycle.

John: Were you already long-time lifelong friends? Or you met along the way? When did you guys first meet?

Ajay: So I know Tim now for almost 10 years. And I met actually Tim on, I think, it was one of the early second, third lithium projects I worked on, a large lithium project in Europe. I was developing the project execution plan. So he is actually from Australia, from Brisbane. And that’s actually where the lithium practice of the company we were was set up. So we started interacting a lot on that project. And then it just so happens at the same time in our careers you made a shift a little bit from engineering to management consulting or advisory. Still in the same company, but that was very different. On the one hand, initially, we were executing these big projects and it’s really driven towards the capital cost and building the project. On the advisory side, it was completely different. We would get asked by investors, corporates, looking at the lithium space or battery space and they’d say, hey you folks are the experts and we’re looking at this investment or we try to figure it opportunities, help us here type of thing and do a review. So that was great because I think sometimes engineers, obviously engineers, during their whole walks of life, sometimes though when you get stuck in an engineering company, you get very pigeon-holed on cost. You’re really focused on capital cost, operating cost. But you sometimes can forget the business case, the business model. What is going to make this business take? So Tim and I happen to join that group at the same time, worked even more closely together, and end up actually advising a lot of the lithium companies around the world. And then we both had this entrepreneurial tic, this entrepreneurial flare. We wanted to do something, and I knew I wanted to do something but the question was what? And this was the combination of that acumen passion for something which we knew needed a solution. And then you’d take a leap of faith, as you know, John.

John: And when was that leap of faith? Like what year was it? What month was it?

Ajay: It was always late 2016. That was late 2016.

John: Late 2016.

Ajay: Yes.

John: And you said, let’s do this together.

Ajay: That’s right. So it was literally Tim and I in a coffee shop. We had this idea, you know, we hadn’t developed any technology but we just knew it was a big issue. And we said you know what we can’t do that here because this isn’t this business. Let’s do this. So, you know, let’s take a leap of faith. So I resigned, Tim resigned around the same time. We got developing. And then Li-Cycle scaled from there. I’m happy to walk through the story but that’s kind of the origin story of the company.

John: That’s just so wonderful. We have so many entrepreneurs from around the world that watch this. How did you figure out though, as you said, in the business case, you’re an engineer? So, you know that lithium-ion batteries are a problem, for there will now basically ubiquitous to electronics. And when did you realize with Tim, now late ’16? Now you start marching forward, you’re writing a business plan. You’re starting to raise some seed capital, I’d take it. When do you realize though, you have something on your hands that’s really going to get to potentially is, not only going to fix a big void in the marketplace, in a big problem in the world, because it is a huge problem. The magnitude of the moment is big. But making it a business as you and I know, was a whole different story. When did you really feel like, when did you and Tim looking at each other and say, we got this? How long did it take, post-starting, to when you looked at each other saying, we got this?

Ajay: Yes, and you know John, it is all about execution. Right?

John: Yes.

Ajay: You can have a great idea and it’s done execution. You know, it was probably, at the initial phases, whenever we have like a, take a step back. This isn’t like writing software and there’s a lot of problems in our world needed an approach.

John: Right.

Ajay: This is about something hardtack real, you got to test it, you got to scale it, you need capital. So as soon as you enter into that regime, number one it’s already hard. You got to figure out a way, it’s a full circle, right? You have to show the solution, the traction and that also begets more traction. But if you can’t escape out of that, then you kind of get stuck there, right? So we knew that we had something. It was after we’d spent that initial time to validate the technology and the associated economics. Now coming back to our background, this is why it was so helpful. We had a very structured way of thinking about that. I’m always a fan. Any prompt this as a massive problem. But as you say it’s a very different thing than to create a business out of it. Sometimes a bit of a misnomer, a young company growing, you don’t have any structure. Actually, if you can bring in structure to vague problems and make decisions out of the structure, and you have to be nimble and flexible.

John: Right.

Ajay: But if you take that approach, you get to the point where you can say, okay, go or no-go? We think we have something here, or maybe you don’t. It’s really true. And you have to be honest and that’s hard.

John: You’re so right, Ajay. Because so many people see a problem, come up with a solution. But as you said, there’s no business case around it to make it commercializable and scalable. And so you’re saying because of your engineering background and Tim’s engineering background, you were structured in that approach that when you got to the solution, you also knew the scalability of it.

Ajay: Exactly.

John: That’s wonderful.

Ajay: That’s not even buzzed only very mechanically practically speaking, and our space. What is it? Well, it’s a financial model. You got to start looking at it. It’s getting hyper-specific but that’s the business case. It’s the culmination of saying, okay I got these variables. Oh, we can make money here or we spend money here and it has to net-net be black and positive and you got to early on start iterating all that. And as you start scaling up, making things grow, validating, there’s feedback points, right? So when our technology is mechanical-chemical and as you scale up, you get things like recoveries. How much of the material are you recovering? Well, recovery is a huge driver if you can make money or not. So these are the types of things along the way. It’s iterative, but you got to have some way to channel that and make decisions and understand and then iterate more as you continue to go along the path. And as I said, if the answer sometimes is not good, which for some cases isn’t, some materials, some industries, within the recycling subset.

John: Right.

Ajay: It may not make sense in some cases. You got to be honest with yourself about that.

John: There are viewers and listeners that just joined us. We got Ajay Kochlar with us today. He’s the president, CEO, and co-founder of Li-Cycle. To find Li-Cycle, Ajay, and his colleagues and the important and great work they’re doing, go to www.li-cycle.com. Ajay, just like we know with electronic waste which is still the fastest growing solid waste stream in the world, and it should not go to landfills because of the arsenic, beryllium, lead, cadmium, and all the other potential hazardous materials that could get into our ecosystem. Lithium-ion batteries are now part and parcel ubiquitous to the electronic waste problem in many ways. And also the EV car explosion that we’ve now lived through and are going to continue to see in the next 10 years. Explain the environmental risks and problems with the miss allocation or appropriation of lithium-ion batteries, if they don’t go to a responsible recycler like you.

Ajay: It’s a great question, John. Because the first question needs to be, do we actually need to recycle this? But what is the benefit?

John: Right.

Ajay: Right? Okay. So in the case of lithium-ion batteries, everyone will know from all the media headlines sometimes, they have risk involved.

John: Right.

Ajay: External risk. There’s electrical risk. This is not a piece of scrap metal. Not only do you have metals like cobalt, nickel that are heavy metals and can go into our environment. That’s one aspect of it, but batteries can have thermal risk if I use the industry term. And I don’t need to cite specific examples so that people know of it, right?

John: Right.

Ajay: So that kind of begets, okay well, you can’t throw it in the trash because you throw it in the trash, what’s going to happen? And this by the way has been happening all around the world. What happens? The battery, when it goes through your general recycling stream, and a device even, like our phones these days, the battery is embedded in there, right?

John: Right.

Ajay: So a lot of folks don’t know and what’s happening all around the world is you have these generalized material recovery facilities, Murph’s is what it’s called, having this fire epidemic. Because what happens is the batteries in the device get compacted, they short-circuit, it catches on fire, what’s all around it is fuel, plastic, and paper, and other things. So that then means you can’t be throwing these things from the general waste stream. That’s the one side of it.

John: Wow.

Ajay: The other side of it is, and this is where back to what I was talking about the business case, there’s a lot of great materials in there. These fantastic, refined, critical materials in there. What’s critical material? It’s something which for the economy and the world is really important. And foundational and lithium, nickel, cobalt as an example, which are all in lithium-ion batteries, or that range of them, are all critical materials. So we would be remiss if we don’t tap into this great urban mining source.

John: Right.

Ajay: To really fuel the future of the world which is powered ubiquitously by lithium-ion batteries. So it’s an environmental imperative. But it’s also an economic and a supply chain imperative.

John: So you’re saying the nickel, the cobalt, and the lithium-ion, you’ll be able to recover from your process, will then go back for beneficial reuse to the manufacturers of the lithium-ion batteries again?

Ajay: Exactly. Exactly.

John: It encloses this whole circular economy will close.

Ajay: Exactly. And the challenge and what’s been happening, to double click on that, okay, then what’s been happening to the batteries? You see they have different form factors. Lithium-ion battery, this family of battery type which is in phones, devices, etcetera, different chemistry. There’s many many different types. But what’s been happening predominantly, if these batteries get back to a recycling supply chain, it’s highly disaggregated, multi-party involved, very common that you’ve had brokers involved along the way, and when they do end up at facilities, it’s usually highly manual, at the front end. Imagine like an EV battery, like a Tesla Model S battery, the common thing and I’ve seen it with my own eyes, is groups will take apart that large battery pack and I don’t know if a lot of folks know but in there, there’s thousands of little battery cells.

John: Right.

Ajay: And they’ll, literally isolate those, upfront then they often discharge them. Then they try to shred them potentially. And then the biggest issue with the way this isn’t happening before us is it’s been very thermal. There’s a lot of thermal processing where people are trying to burn off what they don’t want. They don’t want plastic. They don’t want some of the solvents in the battery, the electrolyte. Not getting too technical but there’s things in there that just people have said, okay well, this is more like a waste approach and they’re really been after things like cobalt. But as you think about our world, and you think about where lithium-ion batteries are powering us going forward? How can that be the way, number one? Right? It doesn’t sound very fit sustainably that you’re burning off things in a bad way, in terms of our future.

John: Right.

Ajay: And by the way, the reason for that is you create a lot of potential toxic emissions specifically, with the latter when you do that.

John: Right.

Ajay: Two, is back to your point. Okay, then why do this? We can’t put them in the general way stream. We want to get back the materials. So what’s a more efficient way that doesn’t have a negative environmental impact but boosts material recovery, which by the way is also better for the economics and the profitability. That’s what Li-Cycle has been innovated, right? And that’s where our spoken hub model comes from.

John: And let’s talk about that. Without giving away your secret sauce, what was the innovative process that you and Tim created that is proprietary? And without giving away that secret sauce, like I said, explain what your solution is as opposed to the old solutions, which you’re about to disrupt.

Ajay: And this is exactly where Li-Cycle’s focus is. So it’s a spoken hub model, which is a model used in many industries. In our context, what does that mean? It’s a mechanical, and it’s a wet chemistry or the industry term for that is hydrometallurgy.

John: Okay.

Ajay: We’ll cross that way to deal with any lithium-ion battery. So we don’t care if it’s from a device. We don’t care if it’s from an electric vehicle, energy storage, we’re totally agnostic. The two steps of what we do and the innovation around it, I’m going to break it into the spoken hub. I’ll talk about how we got here.

John: Okay.

Ajay: We have two commercially operating spokes today. We’ve one in Kingston, Ontario, Canada. We have one in Rochester, New York. And those are two existing commercial facilities and we’re building more. What these facilities do, is we take in, as I mentioned, single-stream any lithium-ion battery, and it’s mechanical or shredding. But the IP and the secret sauce, without giving anything away, is all-around safety.

John: Oh.

Ajay: I mentioned this whole concept of safety. As you throw devices in the general waste stream, you have issues with fires. This is what needs to be managed really really carefully. And our way of dealing with the battery, automated mechanically breaking it apart, make sure that there’s no risk from a safety standpoint, in terms of thermal events.

John: Wow.

Ajay: So we have a very specific way, we do that, it is patented. The IP Zone by Li-Cycle, we fully developed it and it’s now commercial. And we’re in the stage of basically build a minute. Okay. So what do you get out when you basically finish this whole process? You get three things. You get something called black mass in the industry. It’s a very creative name. All it is is basically the cathode-anode in the battery, the positive-negative terminal. Why is it called a black mask? It’s because it’s a black powder.

John: Okay.

Ajay: That’s really the main value. The cobalt, the nickel, and the lithium, it’s in that black powdery material.

John: So all three of those items that you’re going to sell for beneficial reuse are contained in that black mass?

Ajay: You got it. You got it. And that’s about typically 40% of the mass of the battery coming in.

John: Okay.

Ajay: So you have taken away a lot of the mass to get that malleable portion. Then you have a plastic stream and this is where again traditionally it’s been burned off. It’s challenging, plastic recycling is another huge challenge of our generation. In our case, we’ve managed to find at least to hone back to plastics to fuel. So it can go back into fuel, at least some application downstream of us. And third, there’s a metal stream. Copper, aluminum, steel, etc. That can also be re-recovered for the metal value. So those are the three streams out of our spoke. There’s no wastewater. There’s nothing thermal. We don’t burn anything off and it is purely automated. And one last point on the spoke plants, that I’ll pause. These are modular-built. We basically built them in shipping containers almost, a little bit bigger than that.

John: Right.

Ajay: So we can turn these out within six months. And this is our vision that we want to have, not two, we want to have twenty in the next five years. Get them close to where our batteries are, so we can limit the shipping distance for batteries to go from point A to point B. And you get into this valuable intermediate material, the black mass. And you will make this industry much more scalable, much more sustainable, and much more enabling, where our world’s going. So more on the how-to become but I’ll pause there.

John: No, that’s great. Let’s work it backward. So on the logistic side, you save a lot of carbon footprint, number one on your hub-and-spoke approach in terms of being able to be closer to where the sources are.

Ajay: Exactly.

John: Also, it’s a safety issue because as we know when lithium-ion batteries are being transferred, these DOT regulations, both on a countrywide basis and on an international basis which are very stringent because of the danger that lies within in shipping these potentially thermal products. So you’re also making a safer planet besides also reducing the carbon footprint. Let’s go back to the black mass issue, that’s fascinating to me. And that’s a term of art. I’m sure that’s going to get much more popularized as things happen and your company continues to grow and your brand becomes a household name. So, comparatively speaking to the old process that existed and how much went to waste and how much went to beneficial reuse? Just on a 30,000 foot macro-level, the old process, how much of the lithium-ion battery went to waste, and how much went to beneficial reuse? And now your process, how does that breakdown? That’s what’s to me where so much of the exciting part of your company and your technology really lies.

Ajay: Exactly, John. And this does relate. Now that’s a good question at a summary level. It does relate to the hub where we taking the black mass and go back to the chemicals.

John: Yes.

Ajay: And we’re enabling 95% recoveries.

John: Whoa.

Ajay: Beneficial reuse to what’s in a lithium-ion battery. How do you get there? You don’t burn things off. That’s the starting point. Right? And then there’s the complexity and the technology. Okay, how do you actually manage all this? The existing way, if you trace the supply chain, look what’s in a lithium-ion battery, the summary answer is about 50%. Typically of what’s in a battery that gets lost is only 50% and that might be a pretty generous estimate of what actually can go back to the economy. Now, why? What’s happening in those processes? And also what’s in the battery? You have graphite, which is on the anode side, it’s carbon basically. And those processes of that is to burn off. So that’s typically 20-25% of the battery up to that level.

John: Okay.

Ajay: So I already took a 25% hit. You have plastics which is 5-10% depending on the mix that often is also burned off and they not actually get separated to go back to the economy. You have lithium which along the way there slightly so it ends up going in a waste stream, which is a few percent. Start adding these things up and you quickly get to 50% of the battery, which you can’t recover. Why? Because it’s been burnt off. So that’s the 30,000-foot answer level. You know, we’re taking very different…

John: [inaudible] delta and pick up with your technology versus historical legacy technologies.

Ajay. Exactly. Exactly.

John: Wow.

Ajay: Exactly. I think the last thing which relates to the hub, is it overtaking that black mass, we go back to battery grid chemicals. And I think for some people, they might think, oh, it’s just nickel and cobalt commodities. These are actually very tailored chemicals that need to meet a specific specification.

John: Right.

Ajay: What we’re also enabling is actually that black mass. Some people might have got there originally, maybe you doing something thermal. That then would be directed typically to these nickel smelters where that’s really what they’re set up to take but they’re taking it because it has added nickel in it and cobalt and then eventually they go back to things that don’t even go back to the battery industry. They might go back to nickel-metal or cobalt metal. So we’re going back to products that have beneficial reuse directly in the battery industry again. So basically it’s collapsing the supply chain. Instead of having eight steps, you have two. That’s the big efficiency went.

John: I assume the battery recycles are excited because then they’re going to be able to turn back to their constituents and client-base and say hey, we’re making our new lithium-ion batteries out of this much-recycled material, which is very exciting because they know their constituents. Gen Z, millennials are all excited about making the world a cleaner, better place and closing the circular economy.

Ajay: Exactly. And this is now if I were to take a step back, think about the big megatrend drivers in our world, right? There’s probably a few key ones but we’re right at the intersection of it, right?

John: Right.

Ajay: There’s electrification which uses lithium-ion batteries. There’s a push for ESG. We are in that time, as you said John, and you know it so well. And third which hits on that point, these critical materials, lithium, nickel, cobalt which are the things that actually are going to drive our future.

John: Right.

Ajay: There is a big focus on the supply of these. So back to your point for saying battery manufacturer, auto manufacturer, this takes off multiple things for them for solutions. It reduces the greenhouse gas footprint of the vehicle because we actually are a lower greenhouse gas producer of these materials relative to mining.

John: Wow.

Ajay: Two, it gives them the security of supply. A lot of these materials come from far reaches of the Earth, right? Congo is a 70-75% supply of cobalt. This is a huge heartburn issue for a lot of the brands of the world. And why? Because that actually has been tied to child labor, unfortunately. So there’s a big push away to find different sources of these materials. And third, is cheaper. We can be a cheaper source, which can drive down the actual cost of electric vehicle battery, for a device, and hence the actual cost of that product to the consumer. So that’s why consumers should care because this is going to be net net net. Much better for the planet, people, and for the sustainability economy.

John: Everybody wins.

Ajay: Exactly. And that’s the triple bottom line. That’s the bottom line.

John: Now for our listeners and our viewers that have just joined us, we’re so excited. We have Ajay Kochlar. He is the president, CEO, and co-founder of Li-Cycle. To find Ajay and his important technologies, please go to www.li-cycle.com. It’s a great website. I’m on it now. There’s a lot of these great videos of him and Tim explaining their technologies. And Tim is his co-founder and explaining the magnitude of the moment and the importance of responsible lithium-ion battery recycling. Ajay, talk a little bit about your vision. You’ve been doing this now for almost five years. You’re already open in Canada. You’re opening in New York in the near future, in Rochester. How big can this be? How do you dream about this when you go to bed at night? And what’s your and Tim’s vision for the next five years ahead?

Ajay: That’s a great question, John. So big picture. Okay, our world is going in this direction and I think a lot of people focus on electric vehicles. But lithium-ion batteries are everything. I mean, I’m always astounded, you know with our team, our commercial team that helps interface with customers. Just the range of applications, marine, lawnmowers. [laughter] It’s mind-boggling, right? So that’s what they’d always remember. The scale and the magnitude of this problem for sure EVs and battery manufacturing are a big segment. But there’s a lot more. And so as we think about where the world is going? We see, probably to give you some numbers and how we see our scale going with that. Today, we’re probably in the world about a couple hundred thousand tons of lithium-ion battery waste being generated and available for recycling every year. So to give the listeners some context around that, that’s maybe equivalent to about a million Tesla Model 3 batteries equivalent. It’s not all Tesla Model 3 batteries, but it’s starting to get up there in terms of the quantity.

John: Right.

Ajay: That’s this year. 2030, there’s a range of estimates out there and you know looking at them, but all the range between a million and up to five million tons of lithium-ion battery waste or batteries for recycling by 2030. So that is huge growth. And to give you an idea in our world today, China has a large potential capacity that’s growing for recycling but it’s a little hard sometimes to parse there today versus the future. But we’re probably today at about 100,000 tons, 150,000 tons of capacity for recycling. So already we’re way under capacity relative to 500,000 tons. Anything about a million to five million. Oh my gosh. We have a long way to go. And by the way, we are right now the largest commercial lithium-ion battery recycling in North America. We have two facilities, they do 10,000 tons. So that’s big for North America but it doesn’t matter what I just gave you, there’s a huge potential and needier. So what’s our vision?

John: Yes.

Ajay: We have two existing spokes. We have a hub that’s in late-stage development in New York State as well. We want to deploy at least four hubs and twenty spokes around the world in the next five years, globally, between Europe, Asia, and North America. And meeting this need locally, but also from the hub perspective, making those chemicals to go back to lithium-ion batteries again. And that’s our vision for the next five years. I’m sure we’re a little low, with those numbers. And I am always surprised to the upside but this is a problem that needs solutions and it takes time. It takes time to do R&D, develop, get to the point where we are as a commercial company. Now with that kind of behind us, we need to deploy, we need to build, Li-Cycle needs to go out and build.

John: So really, what you’re saying is, John, even though you’ve been at this for five years, this is really still the top of the first inning?

Ajay: Yes.

John: There’s so much further to go nationally, internationally. The problem is only going to continue to grow and the opportunity is as wildly huge.

Ajay: Exactly and I think one thing just for listeners to help understand it and sometimes people think oh, you know electric vehicles just hitting the road now, it’s going to be 10 years before there’s any sort of volume if that’s the biggest segment. One thing everyone needs to keep in mind is as you make all these new batteries because battery manufacturing is trying to grow exponentially, there’s also actually production waste which is 5-10% of the amount of batteries made. Which by the way, ends up being a couple hundred thousand tons. So that’s the near-term reality that in the near term you have this source of manufacturing scrap, consumer electronics, and EV starting to grow. And the future, 5-10 years from now, it’s only going to get bigger as we have more and more of these end-of-life cycle materials and batteries coming out too. So that’s a little bit of a nuance, that sometimes again general public may not be front-page news if you will.

John: You know, Ajay, you’ve given a great story and opportunity and I applaud you and Tim and I cheer you both on what you’re doing. Changing the world is not easy. Changing people’s mindsets, disrupting old industries is not for the faint of heart. You and I know that. And there’s lots of naysayers along the way, people sticking out their legs trying to trip you up. As you look back now just on the last five years and I know you’ve got so much runway to go and you’re going to be massively successful. I have zero doubt. We have a lot of viewers and listeners that are entrepreneurs that want to really be you and Tim next. They want to change the world. They want to make the world a better place. They just don’t want to make a profit which we know there’s no shame in saying that but they want to be disruptive in a good way and make a difference while they’re making a profit. Any last words of wisdom for the next generations coming up behind you of entrepreneurs, ecopreneurs that really want to make the world a better place like you’re doing.

Ajay: I can relate a few pearls of quasi wisdom and what it is.

John: Good. Thank you.

Ajay: [laughter] I think I’ll just do two.

John: Okay.

Ajay: I think one early-stage, if anybody ever has a great idea and you kind of on the fence about taking that leap of faith, and I really encourage, you run it to ground, really get convinced about it. But then there’s going to be a moment there early on, it’s kind of point one where you’re going to have to dig into it and if that’s what you want to do, that’s what we got to do. And it’s not for everyone, right? Not everyone has the personal life for they can do that and you got to think about that. But once you do, also know that in those early couple of months, even six months whatever it is, that’s a pretty tough period. So you got to be resilient. I think I’ll throw all that and the path isn’t always clear. We just got to start moving in the direction and start taking different inputs. You got to be dynamic and you have to be nimble and then figure out the way for it, right? So that’s I think point one.

John: Great.

Ajay: I think two, I’d be remiss about this, I’ll say it’s all about the team. I mean early on, this comes a little bit to the early stage point. Early on it may just be you, maybe you and your founder or rounders, right? So there’s a bit of a chicken and egg problem, right? You need to start getting going maybe to get funding to build the team and then the team’s gonna help you get there. What we did early on and it’s been immensely helpful is try to get an advisory board. It will eventually form into an actual board. Even if they’re just folks that are there guiding, helping, adding value in areas that you may not know, it’s immensely helpful. And down the road, we have a lot of those folks that were with us early days, they’re still there and adding a lot of value. But I’ll just say that’s another tough part. Just talking about some of the practical challenges. People need the funding to build the team all the way around. That is you can kind of step-wise it a little bit. Get some senior folks that can advise, eventually they may become the board. And you can figure out those areas by maybe the last point, I’ll throw in a third, is just no matter what’s happening and we’re at a very exciting phase in our growth. But as you said John, it’s really like day one, we’ve really prided ourselves on you check the ego at the door. I don’t know a lot of what’s happening in our business. I don’t have the answers for everything, right? But I know what we know and we don’t know and I know that we need to bring people together that have those skill sets to really be the driver of success and execution. So I think if you have that mindset throughout, whether it’s day one, from the first day of the 5th year or 10th year, whatever it is. It will continue to have that growth mindset. And I think that’s the only way you can really tackle these growth industries that are so dynamic. So I threw in the third one there.

John: I love it. I love it. Those are great. And those are so important and you know all those pearls of wisdom are very usable by the next generation and I’m grateful for that. I’m grateful for you, Ajay, because I know it’s not easy to disrupt the old industries and legacy industries. Other people, other firms have a lot at stake. You’re doing great work. I’m going to be cheering you on in the years to come and rooting for you. You’re always welcome back on the Impact Podcast. For our listeners out there, to find Ajay Kochlar, his partner Tim, go to go to www.li-cycle.com. Ajay, thank you for making such important impacts on this planet. Thank you for making the world a better place. And I just wish you continued success and I’m rooting you on to becoming a ubiquitous name around the world.

Ajay: Thank you, John. It’s been a great pleasure and looking forward to us and overlapping as well and our worlds are pretty close. We didn’t get into that, but that’s maybe for another episode. [laughter]

John: Another episode. You’re always welcome back to continue to share your great story at Li-Cycle.

Ajay: Thanks, John. I appreciate it. Take care.

John: This edition of the Impact Podcast is brought to you by Trajectory Energy Partners. Trajectory Energy Partners brings together landowners, electricity users, and communities to develop solar energy projects with strong local support. For more information on how Trajectory is leaving the solar revolution, please visit trajectoryenergy.com

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