Used electric vehicle batteries: untapped goldmine or the next big source of e-waste?

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  Quantumrun Foresight
• February 6, 2022

Insight summary

The global shift towards electric vehicles (EVs), driven by environmental concerns, has led to a surge in lithium-ion battery production, but also poses new challenges in managing spent batteries. The rise in EV usage has spurred the development of facilities to recycle these batteries, mitigating environmental harm and creating potential for a new global industry. However, the current recycling technologies face hurdles in cost and efficiency, opening opportunities for advancements that could further enhance the sustainability of the EV industry.

Used EV batteries context

The shift towards EVs has been largely driven by increasing global concerns about harmful emissions from traditional motor vehicles. Over the past decade, the production of lithium-ion batteries, a critical component of EVs, has surged by a factor of ten. While the use of EVs is indeed a more environmentally friendly option compared to vehicles powered by combustion engines, the disposal of old EV batteries poses its own environmental challenges.

If not properly managed, these spent batteries can become a source of harmful electronic waste. Discarding batteries in landfills can lead to the release of toxic chemicals and heavy metals into the environment, not to mention the squandering of finite raw materials. In the past, the recycling of EV batteries was a significant challenge due to the lack of suitable methods and facilities. However, in 2021, the escalating global demand for EVs led to the establishment of new facilities designed to handle spent EV battery components in key markets. 

As the first wave of consumer EVs reaches the end of their battery life, the need for effective recycling solutions becomes increasingly urgent. Recognizing this, companies in major markets, including Asia, Oceania, Europe, and North America, are stepping up to the challenge. They are developing and implementing technologically advanced recycling solutions to manage the growing volume of spent EV batteries. 

Disruptive impact

The trend towards recycling EV batteries could potentially lead to the creation of a new global industry. As governments worldwide continue to promote the adoption of EVs, the need for battery recycling solutions will only grow, leading to the establishment of numerous battery recycling facilities, creating a ripple effect of job creation. For example, the rise of EVs will require the development of extensive charging networks, leading to job opportunities in construction, maintenance, and operations.

Additionally, by recycling the materials found in EV batteries, we can mitigate the long-term environmental impact of these vehicles. The process of reclaiming limited natural resources such as copper, nickel, cobalt, graphite, and lithium from spent batteries can make the EV industry more sustainable. This approach not only reduces the need for new mining operations but also minimizes the environmental footprint of EVs throughout their lifecycle.

However, it's important to note that the current technologies used for battery recycling are not without their challenges. They are often expensive, inefficient, and not as environmentally friendly as they could be. This situation presents a unique opportunity for scientists, engineers, and technology experts to develop improved recycling methods.

Implications of used EV batteries

Wider implications of used EV batteries may include:

• Research opportunities that enhance the efficiency of material processing methods, or investigating more sustainable ways to dispose of e-waste.
• The development of dedicated facilities for processing used lithium-ion batteries, as well as specialized plans and processes for such facilities.
• Reclaiming heavy metals and other materials from batteries, and feeding these back into local and regional supply chains, thereby making EV battery producers less reliant on imported goods.
• Battery recycling companies building partnerships with manufacturers in other technology industries and supplying them with reclaimed materials.
• Recyclers broadcasting public awareness campaigns that encourage consumers to dispose of their personal devices (such as smartphones, tablets, etc., which also contain lithium-ion batteries) more responsibly. These devices could be collected by recycling companies and added to their inventories.
• New educational programs and vocational training opportunities, equipping the next generation with the skills needed to work in this emerging industry.
• New regulations to ensure safe and environmentally friendly practices, leading to a more regulated and standardized industry.
• A decrease in the overall cost of EVs, making them more accessible to a wider demographic and accelerating the transition to cleaner transportation.

Questions to consider

• How far away are we from a more carbon-neutral EV industry, in terms of the waste it produces?
• Seeing as researchers are seeking ways to replace cobalt—the most valuable metal used in lithium-ion batteries—will it still be considered worthwhile to recycle the batteries if cobalt is taken out of the picture?
• What can be done to curb a significant hurdle in the EV battery recycling industry—the transporting of batteries—which are classified as hazardous material in many jurisdictions?