Global Organization
A little further down the line, the next generation of battery technologies will herald a move away from critical elements toward cheap and abundant materials, which will improve supply chain sustainability, open up new applications for secondary batteries, and separate energy storage science from the influence of global politics.
The battery recycling sector, still nascent in 2023, will be core to the future of EV supply chains, and to maximising the environmental benefits of batteries. Global recycling capacity reached over 300 GWh/year in 2023, of which more than 80% was located in China, far ahead of Europe and the United States with under 2% each.
Besides, supporting policies that instill involvement of the public in recycling batteries should also be enforced. For example, deposit refund schemes for plastic can encourage proper disposal and recycling of used plastic, which can help to reduce its environmental impact.
Undeniably, securing sustainability in batteries should not focus only on the end of life (EoL) but throughout the life cycle of the batteries. Additionally, the responsibility of establishing circularity in batteries should not depend solely on industries and producers but should involve consumers as well.
While the supply of both battery scrap and retired EVs will increase, current expansion plans and outlooks suggest that battery recycling capacity could be in significant overcapacity in 2030: total supply in 2030 could account for only one-third of the announced recycling capacity in the STEPS and APS.
This work is independent, reflects the views of the authors, and has not been commissioned by any business, government, or other institution. Global demand for batteries is increasing, driven largely by the imperative to reduce climate change through electrification of mobility and the broader energy transition.
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