From Tsunami-threat to treasure: how spent EV batteries can power the future

With over 100 million electric cars expected to hit the market in the coming years, a tidal wave of spent lithium-ion batteries is set to retire by 2030. Innovative repurposing strategies aim to close the loop and transform this environmental threat into valuable storage capacity. Yet, experts warn: "For a truly circular system, we need a stable regulatory framework and a shift in industry mindset."

Crucial for mobility electrification and energy transition, but threatening if in excess. In 2020, Greenpeace East Asia warned of "a tidal wave of old EV batteries" about to hit China and stressed the challenge of their end-of-life as a "billion-dollar, billion-ton-of-carbon dioxide question." With the Paris Declaration on Electro-Mobility and Climate Change and Call to Action targeting more than 100 million electric cars in the next five years, and over 12 million tons of lithium-ion batteries expected to retire by 2030, multiple estimates confirm that this "tsunami" will soon go global.

"Lithium-ion batteries (LIBs) can play a crucial role in moving towards carbon neutrality and tackling the climate crisis. They require fewer resources for extraction and processing than fossil fuels. However, we must focus on reducing their carbon emissions and environmental impact throughout their lifecycle, from production to application and end-of-life management," exhorts Ada Kong, Deputy Managing Director of Greenpeace East Asia.

Fuelling concerns and the urgency for more sustainable management are also the socio-economic implications linked to LIBs' reliance on imported critical raw materials and the conditions under which they are extracted. "Batteries are essential for electrification but are material-intensive. If the middle steps are not handled correctly, this could result in significant waste, because of premature disposal," points out Anastasia Tsougka, Programme Manager for the Brussels-based NGO Environmental Coalition of Standards (ECOS). The "middle steps" Tsougka refers to are repair, reuse and second-life applications of EV batteries. Along with recycling, these strategies aim not only to extend battery life but also to transform potential waste into valuable resources. "Managing this growing stock of used batteries will be a significant challenge, but through repurposing, we can turn this problem into a valuable opportunity and use them to meet the increasing demand for storage capacity of renewables," points out Guillermo Sanchez Plaza.

Research leader of the Photonic for Photovoltaics group at the Universitat Politècnica de València, Sanchez Plaza is also coordinator and principal investigator of Rebelion, a European project promoting a circular model for LIBs. Its technical coordinator, Jaime Alcalá Sanz, explains: "Recycling is seen today as 'the new mining' because it offers a way to reduce Europe's dependency on international supply chains. By developing a robust second-life and recycling industry for batteries, we could decrease our reliance on imported raw materials. So, it's not only about the environment and economy, it's also a matter of strategic choices. Even though remanufacturing EV batteries shows promising potential, its application is still limited by regulatory, economic and technical factors. "When repurposing used batteries, you need to dismantle them, test each cell, sort them, and then assemble them into new batteries. This requires significant labour, energy and resources. Initially, we did this manually, making the process more expensive than buying new batteries. To compete with—or even undercut—the cost of new batteries, we need to reduce labour costs, and the key to making this process economically viable is automation," explains Sanchez Plaza.

A key strategy of his project to make repurposing and second-life applications more competitive is the development of a wide range of cutting-edge technologies. "About 60% of our efforts are focused on automation. We're using robotics and advanced communication systems to reduce the cost of disassembling and rebuilding batteries. Currently, testing each cell takes about four hours, and we aim to reduce this to around 20 minutes," he adds. Even though Rebelion's primary focus is on repurposing, this approach could also make the recycling process more cost-effective. "Whether through robots alone or hybrid collaboration, our automation technologies are designed to efficiently dismantle batteries, which is the first step in the recycling process. This helps reduce costs and labour before any mechanical shredding or chemical recycling takes place," says Alcalá Sanz. The overall goal of this strategy is to close the loop by prolonging EV batteries' life to meet the growing demand for storage capacity needed to increase the penetration of renewables. "In 2024, the number of electric vehicles sold in Europe had a combined storage capacity equivalent to all the storage required for Spain's renewable energy system," recalls Sanchez Plaza. "This highlights the enormous potential to use repurposed batteries for energy storage."

According to Greenpeace East Asia's calculations, repurposing batteries can save 63.34 million tons of carbon emissions from new battery manufacturing. "If implemented effectively, repurposing and recycling would prevent massive waste and reduce the need for new raw materials. This would minimise environmental impact, lower costs, and decrease the geopolitical risks associated with mineral supply chains," confirms Kong. Despite this promising potential, NGOs and experts point out challenges ahead, including lack of standardisation, limited manufacturer commitment and regulatory burdens. "A key barrier to repair and reuse is the reluctance of battery manufacturers to disclose proprietary information related to battery design and state of health, which could impact their patented products and business models," says Tsougka. "This significantly hampers design changes and progress in standardisation, limiting broader adoption of reuse and repurposing practices." Automation can play its part in reducing costs, but it's complicated by the lack of standardisation in battery design, confirms Alcalá Sanz, adding that there is also a regulatory challenge, "as current laws aren't well-adapted to this new circular economy model and it's often unclear whether these products are classified as waste or consumer goods, which affects safety standards, insurance and warranties."

Experts agree that by addressing these gaps and encouraging modular, repairable designs we can create a more resilient and sustainable battery ecosystem. "The EU's approach is heavily focused on recycling," says Tsougka. "And while regulation is strong in this area, it lacks robust provisions for repairability and the second-hand market for EV batteries. The conversation should move towards a truly closed-loop economy approach. This means considering adequately every step of the battery lifecycle, from design to end-of-life. For a truly circular system, we need stronger policy incentives and a shift in industry mindset. If stakeholders, including policymakers and manufacturers, adopt this environmentally sound and science-based approach, it would significantly advance the sustainability of EV batteries." A call for clear guidelines, consistent over time, comes also from Alcalá Sanz: "A clear regulatory framework with well-defined rules, would not only allow policymakers to take informed decisions, but also help develop technology. If you invest in a process and, five years later, a new directive changes the rules, it's not just about the technology no longer being the best fit—it also discourages further investment because of the fear of losing time and money. Setting a stable framework is the only way to make this transition happen," he concludes.

Provided by iCube Programme