The transition to electric vehicles (EV) is accelerating, making battery lifecycle management a key priority for the automotive industry, according to GlobalData. Efficient recycling processes are essential to reduce waste, recover valuable materials, and meet increasing regulatory demands.

Madhuchhanda Palit, automotive analyst at GlobalData, said: “The automotive sector is increasingly embracing circular economy practices, focusing on reusing and recycling materials to minimise waste. This transition not only benefits the environment but also presents lucrative opportunities for businesses in the growing market for recycled battery materials. Patent analytics indicate a surge in research and development aimed at improving recycling efficiency and reducing costs. Companies are investing in innovative technologies that enhance recovery rates while lowering the carbon footprint associated with recycling processes.”

Current recycling methods—including hydrometallurgical, pyrometallurgical, and direct recycling—are being explored to recover nickel, cobalt, lithium, and manganese. Among these, hydrometallurgical recycling has emerged as the most effective method, demonstrating a notable positive environmental impact.

Regulatory frameworks are also evolving, with governments setting strict battery recycling targets. The European Union’s Battery Law mandates that by 2030, recycling processes must achieve recovery rates of 95% for cobalt, copper, lead, and nickel, and 70% for lithium. In the US, various states are increasingly adopting Extended Producer Responsibility (EPR) policies, which will hold automakers accountable for the recycling of all batteries. These regulations are expected to drive investment in recycling technologies and infrastructure, promoting a more sustainable automotive ecosystem.

Palit concluded: “In conclusion, the journey towards a sustainable future for EVs hinges on the effective management of battery lifecycles. As the automotive industry embraces recycling as a core component of its strategy, the potential for growth and innovation is significant.

“While challenges remain, the advancements in recycling technologies and the increasing emphasis on sustainability present a promising outlook for the automotive market. As stakeholders navigate this evolving landscape, the commitment to sustainable practices will not only mitigate environmental hazards but also drive market growth in the years to come.”