Overview
As global electric vehicle adoption accelerates, the volume of end-of-life (EOL) EV batteries is rising sharply. The World Resources Institute estimates this volume could reach 20.5 million tonnes by 2040. In China alone, 820,000 tonnes of retired batteries are expected to accumulate by the end of 2025.
Why it matters
- The recycled critical minerals market could reach $200 billion by 2050.
- Recovering critical minerals like lithium, nickel, and cobalt strengthens supply security.
- The IEA estimates that by 2050, recycling could reduce the need for newly mined lithium and nickel by 25%, and cobalt by up to 40%.
Current challenges
- In China, 20–30% of retired batteries are processed through unregulated channels.
- In the UK, 90% of used EV batteries go unprocessed due to insufficient recycling capacity.
- EV adoption is growing faster than recycling capacity can keep up with.
Policy shifts
The EU launched the Battery Booster program on June 11, 2026, designating the circular economy, material recovery, and recycling as a strategic industrial sector, with €1.5 billion in announced support. Manufacturers like BYD and CATL have begun integrating recycling into their production systems.
Second-life batteries
Once battery capacity drops to 70–80%, it becomes unsuitable for vehicle use but can be repurposed for stationary energy storage and industrial applications. However, this is only a stopgap full-scale recycling infrastructure remains essential in the end.
Conclusion
EV battery recycling isn’t just waste management it’s a critical sector for strategic mineral security, industrial competitiveness, and supply chain resilience. This trend further reinforces the significance of MCBI’s initiative to build a circular economy system for EV batteries in Mongolia.
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