Recycling Batteries for E-Mobility Current EU Recycling Practices for E-Car Batteries Are Not Profitable

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The Chair of Production Engineering of E-Mobility Components (PEM) at RWTH Aachen University has concluded in a study that current EU recycling methods for batteries from electric cars are not profitable. This is due to high transportation costs and the treatment of black mass.

One pillar of global strategies to reduce CO₂ emissions and thus slow down climate change is electromobility. It is already being said that climate efficiency in private transportation can be achieved more quickly with an electric vehicle than with a combustion engine. But there are still major challenges that need to be solved.

One of these challenges is called resource scarcity and could affect our electrified community sooner than some might expect. Studies warn that Europe will face a lithium problem by 2030 or that the global semiconductor industry will struggle with copper shortages in 2035. To mitigate such shortages, e-waste recycling is seen as a means to an end; not only to feed resources back into the cycle, but also to reduce supply chain dependencies.

In Germany, there are already many projects dealing with the recycling of batteries from e-mobility applications at the end of their service life. Nevertheless, the recycling of e-waste rarely makes significant progress. The reason: recycling is often unprofitable. This is confirmed by a recent study by the Chair of Production Engineering of E-Mobility Components (PEM) at RWTH Aachen University. However, for recycled material to become an option for customers, it must be able to compete with primary resources in terms of cost.

Unprofitability Due to High Transportation Costs

"The results confirm that current recycling practices are not profitable," summarizes PEM Director Professor Achim Kampker. This is partly due to the enormous transportation costs. Once the battery has been removed and diagnosed, the pack has to be transported and stored. This is followed by pre-treatment and mechanical recycling processes. In many cases, the resulting black mass is transported again so that it can be subjected to hydrometallurgical processes. Only then can the extracted active material be added back to battery production.

The researchers from the PEM Chair spoke to 13 stakeholders from the sector for the study; these included battery manufacturers, original equipment manufacturers (OEMs), logistics companies and battery recycling companies. The number of participants was judged to be significant for this sector. The result? 62 percent of respondents "somewhat agree" with the study hypothesis that the recycling of traction batteries in Europe is currently not economically viable, 15 percent even "completely agree".

One reason for this is that the quantities of traction batteries returned are still low, meaning that recycling companies have to rely on batteries from electronic devices or old material from battery production in order to make profitable use of the facilities. Operators cite transportation as one of the driving cost factors for recycling.

"Battery transportation is a critical bottleneck in the recycling process. All participants cited the high transportation costs due to the strict safety requirements as a major challenge," the study states. Sites for both mechanical and metallurgical processes are also difficult to find or set up due to complicated approval procedures. However, transportation is no less complicated, for example due to certain containers that have to meet safety requirements, are expensive to rent and are then also moved by heavy goods vehicles.

One solution could be spoke-and-hub structures, an organizational or logistical structural model in which a central element ("hub") is connected to several decentralized units ("spokes"). The spokes are not directly connected to each other - the exchange always takes place via the hub. "According to the results of the survey, 77% of participants agree with the hypothesis and a further 23% tend to agree that this structure should be introduced in Europe. However, several participants emphasized that there is still a lack of practical implementation strategies for the spoke-and-hub structure and that these need to be developed," the study states.

What to Do with the Black Mass?

The handling of the powder that remains after the mechanical crushing of the batteries should also not be underestimated as a cost factor. The extraction of valuable metals such as lithium, nickel, cobalt and manganese from the black mass requires precise controls and complex processes to ensure that the metals are extracted in high purity. The waste produced during hydrometallurgy can contain toxic substances and heavy metals that require further treatment. Due to the high energy requirements, thermal processes are also a cost driver.

"Several survey participants pointed out that cost-efficient operation of hydrometallurgical plants requires annual input volumes of between 20,000 and 60,000 tons. The planning of such capacities is complicated by the lack of reliable data on future battery return volumes," it says.

And what if the hydrometallurgical plants are not available? "All participants in the study confirmed that independent sales to non-European markets are the main destination for black mass produced in Europe. [...] Only a fraction of participants reported sales to the European commodity market (44 percent) or the return of black mass to battery traders (11 percent). According to the participants, export dynamics are primarily driven by more competitive prices in markets such as Korea, China and the United States. Although there are also European buyers, their offers are generally less attractive."

Battery Recycling May Be Unprofitable - But Does It Have to Stay That Way?

The study concludes that the recycling of lithium-ion batteries from electric vehicles in Europe is currently not economically viable. Instead of isolated process innovations, a systemic approach is needed: a spoke-and-hub model with regional pre-treatment and centralized chemical processing can reduce costs and increase efficiency.

The prerequisites for functioning cycles are stable return quantities, clear ownership structures and legal security in handling used batteries. Models such as producer responsibility or battery leasing can help here. Future research should develop practical concepts for circular battery value networks, including site planning, regulatory framework conditions and cross-border balancing. Scenario-based tools could also help to better adapt infrastructure and processes to return forecasts and requirements in the EU. (sb)

Link: Economic and structural challenges of lithium-ion battery recycling in Europe: A stakeholder-based assessment