These technical, regulatory, and market bottlenecks can be resolved with the help of research and technology organisations (RTOs), policy makers (e.g., the European Commission), industrial associations, and innovation actors. Last but not least, the characterisation of ESS/EV batteries cannot yet be performed on an industrial scale due to the lack of common diagnostics protocols and limited access to BMS data by third parties. This, in turn, leads to a time-consuming and labour-intensive disassembly process of batteries before they can be recycled, repaired, or repurposed.įurthermore, the transportation of EoL batteries across Europe has a high procedural burden and is very costly ( roughly 40% of the recycling cost), due to the strict safety requirements for packaging connected with dangerous goods regulations (ADR) and the low number of Li-ion battery treatment plants in Europe. First of all, the supply of EoL batteries is highly dispersed and unstandardised due to various battery types, preventing economies of scale in their treatment. Secondly, parts of EV Li-ion batteries can be repurposed and used in, for example, stationary energy storage applications (over 0.9 billion euros in 2030, assuming that roughly 40% of the batteries in Europe can be repurposed).ĭespite these promising market developments, there are still some major bottlenecks to reverse logistics processes in Europe, which may be difficult to address by industry alone. On the other hand, SMEs (e.g., third-party workshops) are often indispensable, being the first point of contact for ESS/EV owners when their battery needs a repair or replacement. Manufacturers have the position of strength due to control over battery data, while recyclers have the highest industrial readiness to recover value from EoL batteries. Naturally, OEMs and recyclers have the biggest appetite. Importantly, the batteries to be recycled come from two distinct sources: the manufacturing process ( at least 5% of cells end up as production scrap) and EoL EV batteries, as presented in the chart below.īecause of this, all stakeholders mentioned above are currently scrambling to get a piece of this pie. In Europe this creates a market of over 1 billion euros in 2030, assuming all these batteries are recycled. First of all, critical materials can be recovered and used in new batteries. In 2030 alone, there will be more than 110,000 tonnes (or 25GWh) of these batteries in Europe.Ģ5 GWh of batteries to be treated in Europe annually is a business opportunity not to be missed. With a lifetime of 10-15 years, batteries that are currently installed are expected to reach their end-of-life (EoL) and will have to be properly handled. In the face of skyrocketing demand, the scarcity of battery materials, and Europe’s high import-dependency rate, the industry has been urged to increase the recycling capacity for Li-ion batteries and therefore, provide a supply of secondary raw materials. Over 1,000GWh of new Li-ion batteries will be placed on the EU market by 2030, with roughly 10% of this capacity installed in stationary energy storage systems and the rest used for battery electric vehicles. Most of these relate to the use of critical raw materials (CRM) like cobalt and lithium, which are crucial in battery manufacturing, but at the same time suffer from supply risks, such as human rights violations and contamination of the environment at mining operations. Unfortunately, replacing fuel tanks with half-tonne EV battery packs and building megawatt-sized energy storage installations has not solved all issues and has instead produced new ones.
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