Battery Recycling: A Solution to Two Problems.

Photo Credit: ClickMechanic, 2025.

The rapid expansion of electric vehicles (EVs) is transforming global energy and transport systems. The World Economic Forum estimates that two billion EVs must be operational by 2050 to meet global net zero targets.

Yet, the batteries enabling this transition depend on a set of critical minerals whose supply chains are increasingly strained. With EVs already accounting for ~85% of lithium-ion battery demand, and global battery demand projected to reach 3TWh by 2030, addressing this challenge requires systemic solutions across the battery value chain. One of the most promising is battery recycling, which can simultaneously strengthen supply security and reduce the environmental impact of battery production. 

Supply Chain Insecurity

The global battery supply chain is both rapidly expanding and highly concentrated.

According to the UK Government’s Critical Minerals Strategy, UK demand for lithium could increase by 1,100% between 2025 and 2035, while demand for copper is expected to double over the same period.

At the same time, production and refining remain geographically concentrated. China currently controls roughly 70–90% of rare-earth mining and refining capacity, leaving global supply chains vulnerable to geopolitical tensions, trade restrictions or disruptions from conflict and natural disasters.

These dynamics create a strategic vulnerability, whereby the clean energy transition depends on materials that are both scarce and concentrated within fragile global supply chains.

Emissions and Environmental Impact of Mining

Beyond supply security, the environmental cost of extracting battery materials is significant. Mining lithium, cobalt and aluminium requires extensive water use and energy-intensive processing, while also generating pollution and ecosystem disruption.

As EV production continues, relying solely on newly mined materials risks shifting environmental burdens upstream. Without alternative sources of supply, the sustainability gains from electrification could be partially offset by the environmental footprint of mineral extraction and refining.

Battery Recycling: Addressing Both Challenges

Battery recycling offers a circular alternative. By recovering valuable minerals from end-of-life batteries and reintroducing them into manufacturing supply chains, recycling can simultaneously reduce dependence on imported raw materials and lower lifecycle emissions. In doing so, it reduces demand for newly mined primary materials while diversifying supply chains through the creation of domestic secondary resource streams.

Recognising this opportunity, the UK government has set an ambition for 20% of annual demand for critical minerals to be met through recycled sources as part of its broader circular economy strategy.

Industrial pilots are already demonstrating the feasibility of this approach. A collaboration between Altilium and Jaguar Land Rover has successfully produced EV battery cells using recovered cathode active materials. An independent lifecycle assessment found that using 100% recycled cathode materials could reduce greenhouse gas emissions by 32% compared with batteries produced using newly mined and refined materials in Asia.

The EU has recognised that battery recycling is foundational to a sustainable future for battery production. The pilot’s recovered materials satisfy projected regulations, meeting the EU’s 2036 recycled-content targets for EV batteries, including 26% cobalt, 12% lithium and 15% nickel.

From Waste Stream to Strategic Resource

Despite its potential, battery recycling still faces barriers including low collection rates and the limited availability of end-of-life EV batteries today. However, as early EV fleets reach retirement over the next decade, recycled materials are expected to become a significant source of critical minerals by 2040. Building recycling capacity now is essential to ensuring resilient, low-carbon battery supply chains in the future.

Battery recycling therefore represents more than an environmental solution. It is emerging as a strategic infrastructure for the energy transition, capable of addressing some of both the geopolitical fragility and environmental cost of the minerals powering electrification.

What Can Membership Bodies Do?

Membership bodies have an important part to play in supporting the shift towards a circular battery lifecycle. They can educate members on the risks associated with supply chains, promote circular economy practices and advocate for industry standards and policies that support the development of domestic recycling infrastructure.

Membership bodies are well-positioned to identify material issues, disseminate solutions, facilitate collaboration across sectors, accelerating innovation and helping to scale circular solutions. By embedding circularity and resource resilience into professional guidance and policy engagement, they can help their members prepare for upcoming regulatory requirements, potential supply-chains disruptions, and advocate for enabling solutions.

CAFA provides the tools and resources professional bodies need to navigate this transition, supporting associations in understanding climate-related risks, identifying practical sector solutions and guiding members towards more sustainable and resilient practices. By joining our free membership, you can access the frameworks and support to guide members into leaders. Join us today.