Stena Recycling is investing 250 million SEK ($29 million) in a new lithium-ion battery recycling process in Sweden.
The new plant will be located adjacent to the Stena Nordic Recycling Center in Halmstad.
The company is due to break ground on the new facility this autumn.
The batteries will initially be collected via Stena Recycling's facilities in Sweden, and eventually via other countries where the company operates.
Initial sorting takes place at these facilities, but most of the recycling will be done at the new facility in Halmstad.
Fredrik Pettersson, managing director of Stena Recycling Sweden, said: "This major investment is part of our strategy to be a leader in the collection and mechanical processing of lithium-ion batteries to establish a circular cycle for batteries.
"We are now responding to market demand. We are proud to offer a circular solution for lithium-ion batteries.
“It will be a big win for the environment and for the life cycle of the batteries when we recover critical metals such as lithium, nickel and cobalt, which are in short supply, worldwide.”