Market Drivers and Challenges in EV Battery Recycling
Batteries are the most important component in electric mobility today. Engineers worldwide are constantly researching new technologies and solutions to make batteries even more powerful, safer and more durable.
This hunt for outperforming current technologies also has its downsides, as it is very resource-intensive, particularly when the demand for rare or problematic materials is immense. It is therefore all the more important to consider a previously less prominent aspect of electromobility: the logistics behind EV battery recycling.
Elayne Thomas, Senior Research Engineer at Saint-Gobain®, will guide us on an EV battery circularity journey through the maze of different market drivers, regulations and government incentives across various continents.
Market drivers are commonly defined as factors or forces that influence the demand and supply of goods and services in a market. They can be internal or external and may include things like changes in consumer preferences, government regulations, technological advancements, economic growth or decline, and competition.
Elayne, what are the current market drivers for EV battery recycling?
The most important market drivers behind EV battery recycling currently are environmental concerns, government regulations, and economic incentives. Among others, environmental concerns are a strong reason for many consumers to favour electric vehicles over combustion engines when purchasing.
We observe a trend where these environmental concerns regarding the purchase of electric vehicles no longer pertain solely to their use, but also to their disposal at the end of their life. As the battery is a key component of EVs, recycling these batteries, particularly their hazardous materials, helps to reduce the amount of waste and emissions generated by the electric mobility industry.
On the one hand, awareness is increasingly being driven by consumers themselves, and on the other hand, battery recycling is being encouraged by government regulations. Many governments worldwide have implemented regulations requiring manufacturers to take responsibility for the disposal and recycling of their products, including EV batteries. For instance, the European Union's Battery Regulation mandates that all batteries placed on the market in the EU must be collected and recycled. Similarly, China has introduced regulations requiring manufacturers to take back and recycle their batteries. These regulations act as a market driver, encouraging companies to invest in EV battery recycling facilities. While the US enforces vehicle manufacturers to properly dispose of batteries at the end of their life, only around 5% of batteries are actually recycled due to the lack of infrastructure in the US.
Another driver for EV battery recycling is economic incentives. EV battery recycling can be profitable due to the valuable materials they contain, such as cobalt, nickel, and lithium. Beyond the monetary and emissions costs of shipping materials thousands of miles across the globe, creating a more circular ecosystem for batteries reduces risks in the supply chain and has the potential to create thousands of jobs. The demand for these materials is expected to rise as the electric mobility industry expands. For these reasons, some governments offer significant economic incentives, such as tax credits or subsidies, to companies that invest in EV battery recycling technologies.
In one of our previous articles, we focused on the challenges in EV battery recycling, such as the complexity of the process, and provided an overview of the different recycling methods available today. In this article, we will highlight the logistics involved in EV battery recycling.
Elayne, what does the logistics landscape for battery recycling look like today?
While there is much excitement around the value of EV batteries, it’s important to remember that there are still significant safety concerns regarding their use and transfer. And while battery recycling technologies are often discussed, an important but less discussed aspect is the transportation of the battery.
Transport can account for approximately 50% of end-of-life costs. There are multiple parties to consider when a battery reaches the end of its life. First, the car goes to an automotive dismantler, who can separate the battery from the rest of the car. At this stage, it is up to the dismantler whether to dispose of it directly or send it to a recycling facility.
Once transferred to the recycling facility for the materials to be recovered and purified, those materials must be returned to the supplier to be fed back into the raw materials supply chain.
An important regulatory body in this process is the UK Department for Transport and the Environment Agency, which ensures that batteries are transported effectively between each of these stakeholders. The material and size of the container are chosen to ensure the battery will not catch fire in the event of a crash, for instance. The condition of the battery will determine the stringency of these requirements; if the battery is damaged or defective, more care must be taken to avoid a dangerous situation.
Additionally, while the number of recyclers grows in the UK, batteries may still need to travel hundreds of miles to reach the correct destination. While it’s better than shipping overseas, the importance of logistics cannot be overlooked for the process to be successful.
Thank you for these insights and assessments. We have seen, and are still witnessing, rapid developments in EV battery technologies globally. At present, most EV batteries are based on Li-Ion, but with many different technologies such as solid-state, lithium-sulphur (Li-S), zinc-air or sodium-ion (Na-ion) — to name just a few — and we are far from a common technological standard. This increases the challenges for battery recycling both now and in the future.
What trends, developments and expectations do you foresee for future EV battery recycling logistics as growing numbers reach the end of their life?
It is an exciting time to observe the battery recycling sector across the globe. Firstly, I anticipate the development of strategic partnerships throughout the value chain, driven by geographical proximity. One example is the collaboration between LG, GM, and Li-Cycle, a start-up company developing solvent-based recycling technologies.
Secondly, there will continue to be a surge in companies creating innovative recycling and disassembly methods to enhance the profitability and purity of battery materials. With these short-term trends, I expect to see ongoing design advancements for batteries that are made with disassembly in mind, such as the use of debondable adhesives and thermal-interface materials, to reduce the energy intensity of the recovery process.
Finally, trends in recycling technology will be shaped by the rise of LFP chemistries, as these raw materials are currently less profitable than those in NMC cathodes. However, new business models may emerge, such as recovering manufacturing value alongside materials value, to enable batteries to have a second life.
Thank you, Elayne, for these insights and trends in EV battery recycling. We have seen that a lot is in motion, and the topic will become increasingly important in the near future for all those involved. While performance, safety, and durability are currently the main drivers in EV battery design, the recycling component may soon play a much more significant role, strongly influencing new technologies, designs, and materials used.
To be prepared and at the forefront of solutions, speak to your tape expert today and see how specific high-performance solutions with optimised end-of-life properties could help make the world a better home.