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Recycling Battery Metals: A Key to Europe’s Electric Vehicle Future

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Highlights

  • Transport & Environment study reveals Europe can source up to 25% of EV battery materials through recycling by 2030.
  • Recycling could eliminate the need for 12 new mines worldwide by 2040.
  • Recycling can reduce the carbon footprint of lithium sourcing.
  • Policy recommendations aim to create a European Single Recycling Market.
  • Support strategic recycling projects for a circular EV industry.

Europe stands on the cusp of a recycling revolution that could transform its electric vehicle (EV) industry. According to a new study (opens in a new tab) by Transport & Environment (T&E), the European nonprofit advocating for sustainable transport and energy, recycling metals from spent batteries and production scraps could supply up to 25% of the critical materials needed for electric cars in Europe by 2030. But this opportunity is at risk, with nearly half of the region’s planned recycling projects uncertain due to financial, technical, and regulatory challenges.

The Untapped Potential of Battery Recycling

T&E’s study highlights the immense potential of recycling to reduce Europe’s dependency on imported EV battery minerals. Materials recovered from end-of-life batteries and manufacturing scraps could provide enough lithium, nickel, manganese, and cobalt to build 2.4 million EVs annually by the decade’s end. Looking further ahead, Europe could achieve near self-sufficiency in cobalt for EV production by 2040, a crucial milestone for energy independence.

“If Europe delivers on its recycling plans, it can slash its reliance on imported critical metals,” says Julia Poliscanova (opens in a new tab), T&E’s senior director for vehicles and e-mobility supply chains. “The expected volumes of locally recovered materials can enable Europe to build millions of clean electric vehicles locally.”

Environmental and Economic Benefits

Battery recycling doesn’t just address supply chain concerns—it’s a significant win for the environment. The study estimates that recycling could eliminate the need for 12 new mines worldwide by 2040, avoiding the environmental damage associated with mining operations. This includes four lithium mines, three nickel mines, four cobalt mines, and one manganese mine.

Additionally, recycling in Europe could reduce the carbon footprint of sourcing lithium by 19%, thanks to the region’s cleaner electricity grid compared to countries like Australia and China.

Policy Gaps Threaten Progress

Despite these benefits, Europe risks missing out on the recycling opportunity. T&E warns that high energy costs, a lack of technical expertise, and insufficient financial support are jeopardizing nearly half of the announced recycling projects. This could undermine the region’s efforts to create a sustainable, circular EV supply chain.

“Neither the EU nor the UK are ready to capture the recycling opportunity,” Poliscanova notes. “It’s time to start treating battery recycling like another clean tech and prioritizing it in our policy and grant-making processes.”

T&E’s Roadmap to Circularity

To unlock the full potential of battery recycling, T&E offers several policy recommendations:

  • Create a European Single Recycling Market: Streamline and prioritize recycling across EU policy frameworks.
  • Support Strategic Recycling Projects: Focus funding and attention on integrated recyclers under the EU Critical Raw Materials Act.
  • Enforce Recycling Standards: Implement and enforce ambitious circularity provisions in the EU Battery Regulation.
  • Restrict Exports of Battery Waste: Ensure that end-of-life batteries remain within Europe to scale recycling capacities.
  • Simplify Battery Material Shipments: Reduce barriers to transporting end-of-life materials within the EU.
  • Provide Financial Support: Channel funding into recycling projects to bridge technological and commercial gaps.

A Vision for Zero-Impact Transport

For over 30 years, T&E has led Europe’s fight for cleaner transport, influencing key policies such as the EU’s ambitious CO₂ standards for vehicles and the 2035 phase-out of combustion engine cars. With a mission to achieve a zero-emission transport system, T&E continues to advocate for affordable, circular, and environmentally sustainable solutions.

Battery recycling represents a pivotal opportunity for Europe to lead the global EV industry while protecting the planet. With the right policies and investments, the region can build a self-reliant, green, and economically vibrant EV supply chain, setting an example for the rest of the world.

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