Europe is pushing to become more self-sufficient and limit reliance on China by building a circular supply chain for batteries. A tide of regulation will incentivise the development of the bloc’s recycling industry.
The EU passed regulations designed to
create a “circular economy” in July last year. That includes mandatory minimum
levels of recycled materials for EV and industrial batteries by 2031. Brussels
is targeting 65% of the weight of lithium-ion batteries to be recycled by the
end of 2025.
The
ability to recycle battery metals and “close the loop” on their life cycle will
help ease the need for virgin materials, especially given Europe’s lack of
domestic mining supply. The DRC supplied around 70% of the world’s mined cobalt
last year, while Australia accounted for almost 60% of mined lithium.
The European Commission expects
lithium-ion battery demand to increase 14-fold by 2030 on the back of rising EV
adoption, with the bloc to account for 17% of that demand. The EU will ban
internal combustion engine cars and vans in 2035.