How the recycling industry is preparing for the EV battery boom

Lithium-ion batteries have revolutionized the way we power our devices, from smartphones to electric cars. With their high energy density, long cycle life, and low self-discharge rate, lithium-ion batteries have become the go-to choice for many applications. 

With this popularity also comes an ever-increasing volume of batteries that need to be processed. As the recycling industry grapples with the first generation of electric vehicles approaching the end of its life cycle, it's clear that significant investments in infrastructure, technology, and regulatory support are needed. 

Why lithium-ion batteries?

In the realm of electric vehicles, lithium-ion batteries play a crucial role. Their ability to store large amounts of energy in a compact form makes them ideal for powering electric vehicles, which require reliable and long-lasting battery systems.

Compared to lead-acid batteries, lithium-ion batteries offer higher energy density and require less maintenance. As the demand for electric vehicles continues to grow, so does the need for efficient and sustainable battery solutions.

"One of the biggest challenges in North America is the increasing volume of batteries requiring recycling," says Danielle Spalding, vice president of communications and public affairs at Cirba Solutions. "The capacity at which we can recycle and process batteries needs to grow significantly to meet the predicted demand."

Misconceptions about battery recycling

Despite technological advancements, misconceptions about battery recycling persist. A common belief is that lithium-ion batteries cannot be recycled — a misunderstanding that often leads to people throwing batteries into their trash bins, which poses a threat to both waste collectors and the environment. 

"Another misconception is that battery materials can only be used once, yet materials like lithium, cobalt, and nickel can be recycled and reused multiple times. Other materials like zinc and manganese found in alkaline batteries can be repurposed for new applications, such as being used as micronutrients in fertilizers," says Spalding.

Logistical challenges of end-of-life electric vehicle batteries

Scaling battery recycling in North America faces challenges not only due to increasing volumes of end-of-life batteries but also logistical hurdles and the need for specialized infrastructure. 

"Establishing a robust network of battery recycling facilities is a top priority," says Spalding. "Consumer batteries must be collected, packaged, and transported in compliance with specific safety standards, which can present a logistical challenge."

EV batteries, due to their size and weight, require even more specialized treatment. To remedy this problem, Cirba Solutions partners with retailers like Batteries Plus to make battery recycling more accessible, an essential step in scaling efforts.

Expanding domestic battery recycling capacity

Expanding domestic recycling capacity is crucial to meeting the demands of the growing EV market, and new lithium-ion processing facilities will increase the supply of materials needed for new battery manufacturing. 

Cirba Solutions' Lancaster, Ohio, facility recently underwent a significant expansion, supported by $82 million in funding under the Bipartisan Infrastructure Law (BIL). Cirba Solutions plans to invest more than $2 billion into the battery recycling sector over the coming years to prepare for the impending surge of end-of-life EV batteries.

In 2024, the Lancaster facility hit a major milestone, increasing production capacity by over 300 percent and the workforce size by 25 percent. Once fully operational, it will supply enough battery-grade metal salts to support over 250,000 EV batteries annually. The company is also developing a lithium-ion processing facility in Columbia, South Carolina, that will process more than 60,000 tons of batteries annually, producing materials for approximately 500,000 EV batteries each year. 

Government policies like the BIL and Inflation Reduction Act play a crucial role in these efforts by prioritizing a domestic supply of critical minerals and prompting the development of recycling infrastructure.

"By incentivizing domestically sourced materials, these laws reinforce the battery recycling industry as a critical pathway to minimize the need for virgin materials and reduce the reliance on foreign sources," says Spalding.

Creating a closed-loop lithium-ion battery supply chain

With substantial investments being made to expand recycling networks and processing facilities, the industry is positioning itself to meet this challenge head-on. By embracing new technologies, addressing misconceptions, and working closely with regulators, the battery recycling sector is making significant strides toward creating a sustainable, circular economy that will support the future of electric vehicles.

 "The battery recycling industry must be prepared to handle this influx safely and efficiently, ensuring that batteries are recycled and reintegrated into the domestic supply chain. The industry is currently working to close the gap in meeting this demand, all while creating a closed-loop supply chain and circular economy," says Spalding.