Summary
- EU and UK could miss out on recycling potential
- Recycling could reduce reliance on EV battery mineral imports in Europe
- Recovery of battery materials could make Europe almost self-sufficient in cobalt by 2040
- Recycling EV minerals in Europe could reduce carbon footprint compared to extracting in Australia and refining in China
- EU and UK urged to prioritize support for recycling in upcoming Circular Economy Act and funding programs
Article
A recent study by Transport & Environment (T&E) suggests that recycling could play a significant role in reducing Europe’s reliance on electric vehicle (EV) battery mineral imports. The study indicates that by 2030, recycling spent cells and production scrap could provide a substantial portion of the lithium, nickel, manganese, and cobalt needed for electric cars in Europe. This could potentially lead to Europe being nearly self-sufficient in cobalt for electric cars by 2040. However, the EU and the UK face the risk of missing out on this opportunity as half of the local recycling projects are at risk of being cancelled.
Julia Poliscanova, senior director at T&E, emphasizes the importance of Europe delivering on its recycling plans to cut its dependence on imported critical metals. Recovering battery materials through recycling would also eliminate the need for primary ores, potentially avoiding the construction of 12 new mines globally by 2040. This, in turn, would reduce the environmental impacts associated with mining activities on water, soil, and biodiversity. Additionally, recycling EV minerals in Europe could reduce the carbon footprint of sourcing lithium compared to traditional extraction methods in Australia and China due to Europe’s cleaner electricity grid.
To fully benefit from the economic and sustainability advantages of recycling, Europe needs to scale up its recycling industry. T&E urges the EU and the UK to prioritize support for recycling in their policies and funding programs. The upcoming proposal for a Circular Economy Act in the EU is expected to support the scaling of local recycling factories and restrict exports of battery waste while facilitating the shipment of end-of-life battery materials within Europe. However, challenges such as high energy costs, a shortage of technical expertise, and lack of financial support have put almost half of the planned recycling capacity in the region at risk.
In light of these challenges, T&E calls for battery recycling to be treated as a priority in policy and grant-making decisions to capture the recycling opportunity effectively. The organization stresses the need for both the EU and the UK to take concrete steps to address the barriers hindering the scaling of recycling capacity. By prioritizing battery recycling as a clean technology, Europe could potentially boost its domestic production of EVs and reduce its dependence on imports of critical minerals.
Overall, the study highlights the significant potential of recycling in reducing Europe’s reliance on imported EV battery minerals. By ramping up recycling capacity and addressing existing challenges, Europe could not only enhance its sustainability and environmental efforts but also bolster its economic competitiveness in the EV market. The call to action is for policymakers and industry stakeholders to prioritize and invest in battery recycling to unlock the numerous benefits it offers for the region.
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