Glencore (LON: GLEN) & Li-Cycle Holding (NYSE: LICY) of Canada have teamed up to create Europe’s largest battery recycling factory in Italy.

The factory would strengthen Glencore’s grip on the supply of vital raw materials required by automakers.

Later Now, Glencore signed a contract with businesses in Portugal and Spain to provide recycling services for lithium-ion batteries in those two nations.

The company secured assistance from the United States Department of Energy in February in the form of a $375 million loan.

The auto sector is scrambling to achieve stricter carbon dioxide emissions limits that go into force next year or risk incurring fines in the billions of dollars.

According to market analyst at Wood Mackenzie, only 5% of the lithium batteries produced worldwide are currently recycle. And they predict that the industry won’t take off until 2030.