Growing pressure on battery recycling

21.02.2025

Source: E & M powernews

Deloitte and CAS have analyzed the recycling industry for lithium-ion batteries. And the influence that politics, market trends and technological innovations have on the industry.

The increasing demand for electric vehicles, renewable energy storage and portable electronics is putting more and more focus on the recycling of used batteries. A new report by the consulting firm Deloitte and the American Chemical Society with its Chemical Abstracts Service (CAS) department highlights the most important trends.

According to the authors of the report "Lithium-ion Battery Recycling" published on February 20, the recycling capacity for lithium-ion batteries is growing rapidly worldwide. According to the report, the current total capacity of existing recycling plants is around 1.6 million tons per year. In order to keep pace with the growing number of used batteries, the capacity will increase to over 3 million tons per year in the coming years through planned expansions, according to the 36-page paper.

The strict legal requirements for battery producers (Extended Producer Responsibility, EPR) have the greatest impact on the industry. According to this EU concept, manufacturers are obliged to take responsibility for the environmental impact of their products beyond the point of sale. In the case of batteries and electronic devices, this means that manufacturers must ensure that their products are recycled or disposed of safely after use - in order to minimize environmental impact and recover valuable raw materials.

In many countries, these requirements are regulated by law and companies must set up and finance appropriate take-back and recycling systems.

Recycling more in practice than in theory

Technological innovations are also influencing the industry. According to Deloitte and CAS, the three main methods of battery recycling - hydrometallurgy, pyrometallurgy and direct recycling - have more patents than the number of scientific publications, the report states. This development underlines the high commercial potential of recycling technologies. Technological progress is improving both the efficiency of processes and the recovery rates of valuable materials.

According to Deloitte and CAS, digital technologies such as digital twins, blockchain, cloud computing and artificial intelligence play a central role in this: they enable precise tracking of materials and optimized recycling processes. "These tools increase efficiency, improve traceability and ensure compliance with regulations - important steps on the way to a circular economy in the battery sector," say the authors.

The authors also observe increased collaboration between material suppliers, electric vehicle manufacturers and recycling companies. These partnerships focus on the development of closed recycling loops. The report makes it clear that only through this cooperation can the industry achieve the necessary efficiency to keep pace with the growing demand for batteries.

The authors' appeal: To make battery recycling profitable, the right balance between recycling technologies and material value is required. Costs can be optimized through automation and domestic recycling, while economies of scale ensure long-term success. To be successful, companies should focus on a mix of short-term returns from valuable metals and a sustainable approach that reduces the environmental footprint.

The document "Lithium-ion Battery Recycling - Market and Innovation Trends for A Green Future" can be downloaded from the CAS website.

Author: Davina Spohn