As older EVs reach end-of-life, millions of batteries will need to be recycled over the coming decade (over one million tonnes a year by 2030, growing to nearly 20 million by 2040).

The ability to recycle these batteries and “close the loop” on their life cycle reduces the need for virgin mined materials and leads to significant reductions in the carbon footprint of new lithium-ion EV batteries.

By building a circular domestic supply chain, we will reduce our reliance on global supply chains and imported materials. And we also keep batteries from ending up as toxic landfill.

The scale and pace of the transition to electrification has seen a surge in demand for critical battery metals, such as lithium, cobalt and nickel, placing growing pressure on global supply chains.

As the IEA notes in its Energy Technology Perspectives 2023 report “shortages of critical materials… are posing potential roadblocks for the energy transition.”

With new EU regulations setting strict targets for recycling efficiencies and mandatory minimum levels for recycled critical metals in new EV batteries, recycling of spent lithium-ion batteries is a certainty.