Cathal Murphy, Policy Analyst, based in Ireland, examines the pressing need for a clear and consistent policy on EV battery recycling. As electric vehicles become mainstream, their batteries present both opportunities and challenges. Without strong legislation, uncertainty may hinder progress. Murphy highlights the importance of ownership rules, storage standards, and end-of-life strategies to build a confident recycling market.
Transport fuel is changing, as it has always changed. Many fuel types are being considered to potentially replace ICE cars, and EVs will, it seems, at this point, be a cornerstone of new transportation fuels, at least for domestic vehicles.
This means adopting a different approach to this technology in terms of recycling, but it can also mean an opportunity. However, surrounding this change must be a rigid framework of policy and legislation to ensure transparency for the future market in EV recycling. This policy is lacking.
What is required are clear rules on obligations, the ultimate ownership of EV batteries, manageable storage requirements, and a clear statement of the ultimate policy aims of EV recycling. Will it be repurposing first or using raw materials?
Markets require transparent policies to function effectively. With this, any major change in the market requires a clear policy outlook, which should be in place sooner rather than later. This will demonstrate both confidence in electric vehicle technology, of course, and also in the future business of EV recycling.
Much potential is proclaimed from EV batteries in particular, as they will be the largest value part. They can be reused in various applications after their primary use in vehicles ends. This extends their lifespan and reduces the need for new battery production.
Obviously, we have always recycled batteries. However, lithium-ion batteries in EVs present new challenges. These challenges are still emerging in terms of both scale and opportunities to be fully grasped. For example, EV batteries are a car component that can have use beyond just vehicles. I have seen a case where a battery from a Nissan Leaf was used for battery storage in a house to supplement solar energy.
The European Battery Alliance stated that the annual market value is estimated at €250 billion from 2025 onwards. For Europe, establishing a complete domestic battery value chain is seen as crucial for a clean energy transition and a competitive industry. It is estimated that, by 2040, over half the demand for lithium and nickel for batteries could be recycled.
Some regulatory structure is in place. Currently, there is collaboration with EV battery producers to increase the take-back system for reuse, recycling and material recovery of EV batteries at specialist lithium battery recycling facilities in Europe.
This requires specialist transport of waste batteries for segregation and shipment from authorised operators. Support is also being provided by Extended Producer Responsibility schemes to producers who return batteries to their own diagnostic and refurbishment centres in Europe.
In 2022, a Long Life Lithium Battery Re-Use Pilot was carried out by Circuléire. This involved training and upskilling staff, developing a setup, installation, and testing facility for testing and dismantling EV batteries, and investigating their suitability for alternative second-life applications.
Regulation (EU) 1542/2023 came into force in February 2024 and replaced the Battery Directive. Under the new Regulation, recyclers must ensure that recycling achieves the minimum recycling efficiencies and recovered materials levels laid down in the Regulation. The Regulation strengthens the sustainability rules for batteries and waste batteries throughout the entire life cycle of batteries. The entry into force of different provisions is being staggered throughout the period up to 2027. Once removed from an ELV, EV Batteries fall under the Batteries Regulation rather than the ELV Regulation in terms of how they are managed and the recycling targets that have to be met.
Current guidance on EV battery storage recommends that, once removed, the battery be quarantined away from the main workshop. If placed in a storage container, this container must not be adjacent to any buildings or vehicles. The container must be empty of any other product when placing an EV battery for quarantine for a minimum of three working days prior to requesting a collection.
These are the current obligations, but much more work is required to establish market confidence.
EV batteries contain valuable commodities; they have uses beyond vehicles, for example, in electricity storage, so prospects for potential recycling are extensive, but clear policy is limited. Uncertainty for any market is unhealthy. Consistency, clarity and a firm commitment to effective battery recycling are required in a new policy framework.
Images courtesy of Cathal Murphy
