Recycling EV batteries offers an opportunity to recapture rare – and expensive – metals like lithium, which is resource intensive and pollutive to extract. By recapturing rare earth metals, contribution is made to closed loop recycling. In this article, we’ll talk about the environmental as well as economic benefits of recycling EV batteries, the processes and technologies that go into it, and the future outlook with respect to industry challenges.

Benefits of recycling in the electric vehicle industry

While recycling provides many benefits to our environment, including conservation of natural resources, it is especially important in the EV industry. According to the Alliance for Automotive Innovation, 86 percent of a car’s material is currently recycled, reused or repurposed for energy recovery. In the case of EV batteries, recycling offers an opportunity to recapture rare – and expensive – metals like lithium to reuse in new cells.

Extraction of lithium is resource intensive – water usage alone is substantial – and pollutive, causing high carbon emissions. In other words, there is a greater environmental burden from extracting and refining virgin materials rather than recycling them. At the same time, shorter life of batteries means higher impact of CO2 in manufacturing when considered over lifetime or performance. By adding life to the battery pack, the footprint can be spread over a longer time period. By recapturing rare earth metals, contribution is made to closed loop recycling.

Repurpose, reuse, recycle

A battery pack has reached End of Life (ELV) for use in an EV usually when it can only retain 80% of the original charge – when the pack no longer delivers the range and performance expected of the vehicle. The pack is however fit to be repurposed for any use where 80% capacity is still sufficient, such as in stationary energy storage. 

It can also be reused: the cells can be extracted and used in new battery packs for other vehicles with lower performance expectations. A second option for reuse is to have the pack’s cells replaced to bring capacity back to the original level – but this technology is still in its infancy. Battery modules or packs can then be recertified to OEM specifications, reducing manufacturing cost, energy demand and the need for new resources. Recycling means disassembling and breaking down the pack to recapture valuable materials, such as metals and electrolytes, to produce new batteries or other products in various industries.

Technology: methods for recycling EV batteries

Recycling is the final step in the life of any battery, aimed to recover as much valuable raw materials as possible. In EV batteries, it might be done after repurposing and/or reuse have extracted economic life from packs and cells, but those steps can also be skipped.

The first step is to make sure that EV batteries that are selected for recycling are collected safely. There are several reverse logistic companies in the EV dealership market that are specialised in returning battery packs in fire retardant containers. 

Next is the disassembly of the battery pack to isolate the cell modules and other components, many of which can be recycled themselves – such as steel from the housing, aluminium from cooling plates, copper from busbars and wiring, and so on.

The modules and cell assemblies – made up of Li-ion cells (prismatic, pouch or cylindrical) –are not disassembled further (as the cost would be too high with current technologies), but are shredded. This is done either mechanically, through pyrometallurgy (using high heat) or hydrometallurgy (using high-pressure water), the latter being the favoured method. The shredded material is processed to produce ‘black mass’, which contains, among other things, high amounts of various metals – such as lithium, cobalt, nickel and manganese. The composition may vary between OEMs. The black mass is filtered and treated to remove these valuable materials, the rest goes to the landfill. 

Challenges

One of the primary challenges is the high costs involved in the process. However, recycling enables the recovery of critical materials like lithium, cobalt, nickel and other rare earth elements. These materials are essential for battery production and are often sourced through environmentally damaging mining practices. Recycling reduces the need for new mining and lessens that environmental impact. 

All three options – repurpose, reuse, recycle – provide additional value and depend on the recyclability, the ease of disassembly and recovery, and the value to a secondary market for remanufacturing. It is therefore the responsibility of the EV industry to set up the chain to capture batteries and cells at the end of each stage of their 1st, 2nd and 3rd lives, and so on. 

As recycling of EV batteries is expensive, effort is being invested to automate the process (for instance: have robots perform the disassembly). 

For the same reason, much focus is put on repurposing; using the pack for a different application, or taking the cells and using them for different vehicles like 2- and 3-wheelers. For instance, tuk-tuks in India are running with cells from end-of-life Audi batteries.

Advances in battery technology affect the future of recycling too. That includes using less materials – and/or materials with a higher energy density –, less pollutive materials, materials for which there are already large scale and successful recycling chains, and materials that can be recycled for other needs.

Future outlook

According to Precedence Research, the market for EV battery recycling is projected to grow almost tenfold from 2,1 billion dollars in 2022 to about 19.3 billion dollars by 2030, due to growing consumer demand for EVs and technological innovations within the industry.

The expected increase in demand for batteries should not contribute to an increase of environmental risks. We believe that the EU battery recycling directive sets a good precedent to better recycling in Europe, and in the USA there are many great initiatives as well. They will ensure that, in the future, batteries have a lower carbon footprint, need less raw materials, and are collected, reused and recycled to a higher degree. By investing in recycling infrastructure and moving towards a circular economy, OEMs are playing a crucial role in improving recycling technologies and establishing standardised procedures for assessing battery reuse to maximise the lifespan of EV batteries before they expire. Embracing recycling is not just an option, but a necessity to stay ahead.

Consumers have a responsibility in the cycle too. They need to make sure that their EV and battery are maintained correctly – to extend life and ensure the pack remains in a condition that allows repurposing and recycling – and ensure that the EV and/or battery pack is returned to competent outlets – car dealers, OEMs, reputable recyclers – for disposal. In many regions, including the European Union, manufacturers have an Extended Producer Responsibility (EPR). This means they are legally obligated to establish systems for collecting and recycling end-of-life batteries from their vehicles. They may partner with third-party collection and recycling companies to fulfil this obligation. The battery owner (end user)  of the EV has to return it to an authorised collection point or recycling facility. Dismantlers and scrap yards are responsible for safely removing the battery and ensuring it enters the appropriate recycling stream. Finally, recyclers take responsibility for the actual recycling process. Car manufacturers, battery owners, dismantlers and scrap yards have to work in a loop to make sure that the recycling or second life is decided on the condition of the battery.

Responsible recycling is also the purpose of the Digital Battery Passport, key to the EU’s transition to a circular economy for EVs. It will provide information to enable batteries’ environmental sustainability. It includes information on the battery's material composition, the location of the battery cell but also carbon footprint, material sourcing and whether it has been repurposed in the past – which offers consumers a transparent backstory to the product that is critical to ensuring sustainable use, prolonged life, and circularity. 

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