The recycling of lithium-ion batteries (LIBs) in Europe is becoming increasingly important as expansion projects and announcements of new recycling plants continue to emerge. It will play a central role in the continent’s future, helping to reduce dependence on imports and reduce the environmental impact of battery production.
In addition to waste management, reducing the dependence on imports for raw materials and reducing the environmental impact of battery production are crucial aspects for the development of LIBs recycling capacities in Europe. Mandatory collection and recycling quotas, the expansion of the European battery industry and production waste from cell manufacturing are further stimulating the development of the recycling industry. End-of-life (EoL) traction batteries, mostly from pilot and test vehicles, contribute significantly to this growth. The volume of EoL batteries returning to the market after eight to fifteen years of use highlights that the development of recycling capacities is lagging behind the momentum of the battery and electromobility industry. Currently, the recycling map of Europe shows a high density of recycling plants in Central Europe, with significant capacities also announced for Eastern Europe. Proximity to battery material producers, cell manufacturers or car manufacturers is a key factor in selecting locations for recycling infrastructure. Many of these plants are planned either from pilot projects or as extensions of existing facilities. Battery recycling can be divided into “spokes” and “hubs”, depending on the depth of the recycling process. The first steps, such as collection, discharging, dismantling and mechanical processing of batteries, take place in “spokes”. In the hubs, the actual recycling and refining of the raw materials by pyro- or hydrometallurgical processes takes place, recovering valuable metals such as Li, Ni and Co. At the same time, less valuable but critical raw materials such as graphite or manganese are also becoming increasingly important in the recycling process. Europe’s lithium-ion battery recycling capacity is expected to grow to 330,000 tons annually by 2026. This includes capacities announced for 2024, almost doubling existing recycling capacities in 2023. By 2030, total material recovery capacity could reach 900,000 tons annually, almost double the current pre-treatment capacity. European companies dominate battery recycling competition in the EU, but Asian players are catching up. Around 40% of Europe’s “spokes” capacity is supplied by Asian and US companies, with a similar percentage for “hubs” capacity. Current proportions are likely to remain constant as new plants come on stream and announced expansions continue on course. In conclusion, the construction and expansion of LIBs recycling plants is developing very dynamically, with expectations for strong growth in capacities and plant numbers in the coming years. With the projected volume of returned batteries, the actual recycling capacity in Europe will come closer to the input flows, thus contributing to a more sustainable lifecycle for lithium-ion batteries.