The Rise of a Circular Battery Economy
The battery manufacturing industry worldwide is seeing a significant shift due to an increased focus on recycling and reuse of used batteries for sustainability purposes. Due to an increasing use of electric vehicles around the world, millions of lithium-ion batteries will be discarded within the next 10 years. However, instead of throwing such batteries in landfills, the batteries are recycled, and their material is reused in other applications. Thus, the global lithium ion battery market continues to expand.
Lithium-ion batteries are made from precious metals such as lithium, cobalt, nickel, copper, and manganese. Recycling of these batteries decreases the dependency on mining and ensures secure supply chains. Research suggests that current recycling methods can recycle 95% of the precious metals in lithium-ion batteries.
(Sources: ResearchGate, Discovery Alert)
Battery Recycling is Reducing Environmental Pressure
Battery recycling is now gaining traction as one of the main tools for reducing greenhouse gases and saving resources. In an experiment conducted at Stanford University, it was revealed that the recycling of lithium-ion batteries cuts down greenhouse gas emissions by 58% to 81%, when compared to mining virgin minerals. In the experiment, the researchers recorded savings of 72% to 88% on water usage and 77% to 89% on energy required for processing the materials.
Recycling of batteries becomes a priority due to the rise in the volume of waste. It is estimated that currently only 5% to 10% of lithium-ion batteries are recycled around the world. However, the trend is gradually changing, and more funds are being invested into recycling.
In addition to the positive environmental effects, recycling decreases the strain on mining operations. It is well known that mining of lithium and cobalt requires huge amounts of energy and water, and often contributes to the degradation of ecosystems.
(Sources: StanfordReport, RockInst, CSIRO)
Second-Life Batteries are Creating New Energy Solutions
Not all the used EV batteries become useless after their removal from cars. Typically, such batteries have about 70% to 80% of their initial capacity remaining. It means that although the batteries cannot be used for driving anymore, they can be efficiently utilized as stationary storage units.
Used EV batteries are now applied for stationary purposes in energy generation, as well as in renewable energy storage and backup systems, including microgrids. The usage of such batteries provides grid stabilization and helps to store generated solar or wind energy to be used afterwards. According to research, repurposed EV batteries can function in a stationary battery storage system for more than ten additional years.
