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Battery recycling: sustainability as the key to electromobility
Electromobility is booming worldwide, and with it comes the challenge of recycling used batteries sustainably. Despite political uncertainties and stagnating electric car registrations in Europe, battery recycling remains a key component of a functioning circular economy. Valuable raw materials such as lithium, cobalt and nickel must be recovered in order to secure the supply of raw materials and minimize the environmental impact.
Growth market with enormous potential
The market for lithium-ion battery recycling is growing at an impressive rate. According to Mordor Intelligence, it is estimated to be worth 3.25 billion US dollars in 2024 and could grow to almost 9 billion US dollars by 2029 - an annual growth rate of over 22%. Spherical Insights & Consulting goes even further: the market value is expected to reach over 38 billion US dollars by 2032, with an average annual growth rate of 57.2%.
The main drivers of this growth are:
- Rising demand for energy storage systems and electric vehicles.
- Falling prices for lithium-ion batteries, which are further boosting the market.
- Government regulations that require environmentally friendly disposal and recovery of battery components.
While Europe lags behind in battery production, the continent remains an important market for recycling. According to estimates by the Fraunhofer Institute, the market share of electric cars in Europe will rise to almost 60 percent by 2030, which will result in an exponential increase in recyclable batteries.
Mercedes-Benz opened a battery recycling plant in Kuppenheim in October 2024.Battery recycling: processes and challenges
The recycling processes for lithium-ion batteries are technically complex. Three approaches currently dominate:
1. mechanical processing: batteries are crushed to separate metals such as aluminum, copper and iron.
2. pyrometallurgy: The batteries are melted at high temperatures to extract metals such as cobalt and nickel. However, this process is energy-intensive and produces waste.
3. hydrometallurgy: Chemical processes at low temperatures enable higher efficiency and recovery rates.
More and more companies are turning to combinations of mechanical and hydrometallurgical processes, as these offer greater energy efficiency and purity of the recycled materials.
Automotive groups: Recycling as part of the strategy
Mercedes-Benz: Pioneering role in Europe
In October 2024, Mercedes-Benz opened the first battery recycling plant of a car manufacturer in Europe in Kuppenheim. The plant uses a combination of mechanical and hydrometallurgical processes to recover battery-grade lithium, nickel and cobalt. With an expected recovery rate of over 96 percent and an annual capacity of 2,500 tons, Mercedes-Benz is setting new standards. The recycled raw materials are to be used for more than 50,000 new battery modules.Renault: Successful partnership
Renault has been working with Solvay and Veolia since 2020 to create a sustainable source of raw materials for cobalt, nickel and lithium. While Veolia specializes in the dismantling of batteries, Solvay contributes its expertise in chemical extraction. The partnership is currently in the pilot phase in France, but is aimed at industrial scaling.Stellantis: Recycling based on nuclear technology
The Stellantis Group, which owns brands such as Opel, Fiat and Citroën, founded a joint venture with Orano, a specialist in nuclear materials, in 2023. The aim is to recycle used batteries and production waste in Dunkirk, France. The partners are aiming for a recovery rate of over 90 percent.
Other players: innovation and expansion
In addition to car manufacturers, independent companies are also entering the market:
- BASF operates a prototype plant in Schwarzheide that uses innovative technologies to recover cobalt, lithium and nickel.
- Stena Recycling has opened a plant in Halmstad, Sweden, which recycles up to 10,000 tons of batteries annually and achieves a recovery rate of 95 percent.
- Li-Cycle, a Canadian company, is expanding internationally. Since 2023, it has been operating a plant in Magdeburg that processes 30,000 tons of battery materials per year. In 2024, the company received a loan of USD 475 million from the US Department of Energy to build a recycling plant in Rochester, New York.
Political framework conditions: The need for a battery passport
Despite technological progress, policy-makers still need to act. Although the new EU Battery Regulation of 2023 addresses some of the challenges, such as the recovery of critical raw materials, its practical implementation remains inadequate.
Key challenges:
- Lack of uniform EU-wide standards for the dismantling and recycling of batteries.
- Diverging recycling methods and rates in the member states.
- High demands on the quality of recycled battery materials.
A proposed “battery passport” could provide a remedy by documenting the entire life cycle of batteries and increasing transparency.
Conclusion
Battery recycling is developing into a key sector for electromobility. Car manufacturers, chemical companies and independent recyclers are investing in innovative technologies to drive the circular economy forward. In view of the expected growth and technological advances, the sector remains a promising field - both economically and ecologically. The decisive factor will be how quickly political framework conditions and standardization can be implemented in order to make the transformation sustainable.
