Insight 20: Developing a UK lithium-ion battery recycling industry
Summary
Establishing a battery recycling industry in the UK will enhance the security of the supply chain for the raw materials needed for EV battery production, while also ensuring the sustainable treatment and management of used materials. At present, recycling is a labour-intensive process, with costs heavily dependent on factors such as battery chemistry, commodity prices and recovery efficiency. Developing and implementing advanced recycling technologies and processes should increase efficiency, reduce costs and help foster a circular domestic battery economy.
Focus of the Insight
This insight outlines the size of the global recycling market, the key recycling processes and the economics of battery recycling, particularly the challenges involved in retaining the value of recycled materials. Developments in the UK and European recycling industry along with the opportunities and challenges for the UK to establish itself as a leading battery recycling location are also highlighted. The Insight complements Insight 9: The importance of coherent regulatory and policy strategies for the recycling of EV batteries.
Conclusion
As a result of the rapid growth in EV sales from the early 2020s, the volumes of recycled EV batteries are set to increase sharply in the mid-2030s, with retired EV batteries increasingly dominating the recycling market. The transition towards more affordable and battery chemistries containing more abundant elements, such as LFP, will influence the future economic viability of battery recycling. These batteries yield less valuable material and contain lower quantities of expensive metals such as cobalt and manganese.
Research is ongoing into the recycling of lithium batteries, including understanding the commercial viability of recycling other components such as graphite anodes or electrolytes. However, additional research is needed, along with comprehensive changes to regulation and policy strategy, to overcome the current challenges and maximise the potential of these technologies for the UK.
In particular, to strengthen the UK’s position in the global recycling market and enhance the resilience of the UK supply chain, requires:
- Further research to improve recycling technologies, with a focus on new methods for direct recycling and enhancing material recovery from diverse battery chemistries.
- Further research to improve recycling processes focused on more efficient recovery rates and reduced environmental impacts.
- Expanding research on second-life applications, particularly the feasibility and safety of second-life applications for EV batteries.
- Embracing design for recycling principles to standardise and simplify battery designs, including more efficient and cost-effective disassembly at scale.
- Developing initiatives that encourage the reuse and repurposing of batteries.
- Providing financial support to recycling facilities to help then reach commercially viable levels of operation along with incentives for SMEs and startups in the sector.
- Developing strategy and policy to reduce reliance on primary raw materials, particularly imported materials, to spur innovation and investment in the UK battery supply chain.
- Strengthening domestic capabilities and capacity to handle future EOL EV battery designs and chemistries.
Increasing the recycling of battery materials contributes to a more resilient and stable supply chain while also promoting the efficient use of resources. Consistent and focused policies, along with the delivery of improvements in recycling technologies, will be essential to achieving these objectives. The effort will enhance the UK’s competitive advantage in the global battery market.