The Volkswagon process is exactly what I would call a prototype. Very labor intensive and not very large scale. Not clear how economics would work out on that. And color me surprised that they are able to shred the batteries, even after deep discharge of the packs. Shows great confidence in the balancing circuits of the packs. But obviously it can be done.
The largest plant in north america that you reference is by their statement going to be able to process 55 million lbs (25 metric kilotons) of battery packs per year. The lightest Tesla batteries weigh about 1000 lbs so this plant under generous assumptions will be able to keep up with production of 55 thousand vehicles a year, or about a quarter of Teslas current production. Without even talking about plug in hybrids or other manufacturers of electric vehicles.
Obviously recycling will happen, if for no other reason than regulatory requirements. But there is going to be a lot of sweat, blood and tears putting it into place.
I will end by quoting two paragraphs from the article on the Kodak plant site project.
"These startups aim to automate, streamline, and clean up what has been a labor-intensive, inefficient, and dirty process. Traditionally, battery recycling involves either burning them to recover some of the metals, or else grinding the batteries up and treating the resulting “black mass" with solvents.
Battery recycling doesn't just need to be cleaner—it also needs to be reliably profitable, says Jeff Spangenberger, director of the ReCell Center, a battery-recycling research collaboration supported by the U.S. Department of Energy. “Recycling batteries is better than if we mine new materials and throw the batteries away," Spangenberger says. “But recycling companies have trouble making profits. We need to make it cost effective, so that people have an incentive to bring their batteries back."