Patent Study on Battery Recycling Asia Still Dominates, but Germany Holds Its Ground

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The e-car boom is creating a new market worth billions: the recycling of used batteries. A recent study by the European Patent Office (EPO) and the IEA now shows how tough the global battle for raw material sovereignty is. Driven by battery giants such as CATL, Asia is currently setting the tone. In Europe, however, technical resistance is forming.

In the coming years, the lithium-ion batteries in electric cars worldwide will reach the end of their service life on a massive scale. The forecasts are clear: by 2030, around 1.2 million traction batteries will be phased out globally, and by 2040, this figure is expected to rise to 14 million. This brings into focus an industry that has long led a niche existence: battery recycling.

A joint study by the European Patent Office (EPO) and the International Energy Agency (IEA) now shows that the niche has turned into a fierce technology competition. According to the study, the number of international patent families (IPFs) in the field of the circular battery economy increased by an average of 42% per year between 2017 and 2023. By comparison, patent applications for conventional battery production only grew by 16% in the same period.

The EU Battery Regulation as a Driver

This huge surge in innovation is no coincidence. It is being massively driven by regulation, in particular the new EU Battery Regulation (2023/1542). Europe wants to free itself from its dependence on Asian primary mining for critical raw materials such as lithium, cobalt and nickel.

From 2027, binding material recovery rates must be achieved for the recycling of used batteries. In figures, this is around 50% for lithium and 90% for cobalt. These quotas will increase further from 2031, when mandatory minimum percentages of recycled material in new industrial batteries will also come into force. If you want to bring batteries onto the market in Europe in the future, you absolutely need functioning recycling cycles.

The Asian Lead

However, this technology market is currently dominated by Asia. According to the EPA study, 63% of all battery recycling patents in 2023 will be held by Asian players. The rise of China is particularly striking (share of patents from 5% in 2013 to 29% in 2023). The Chinese company Brunp has now replaced Japanese and Korean heavyweights such as Toyota and LG as the leading patent applicant.

The reason for this is structural: Brunp is a subsidiary of CATL, the world's largest cell manufacturer. Asian battery producers have direct access to production scrap and can process it directly into new cathode materials in a so-called closed loop.

The Answer From Germany

Europe is currently not a dominant battery producer, but primarily a consumer. The technological focus in this country is correspondingly different: around 20 percent of global patents originate from Europe. When it comes to the recycling of end-of-life batteries, Germany leads the top 10 European patent applicants.

The three most active German companies in Germany are Bosch, BASF and Duesenfeld. They are representative of the various technical disciplines required for modern recycling:

• The automation experts (Bosch / Bosch Rexroth): Before a battery can be recycled, it must be dismantled. This is life-threatening due to high voltage, fire hazard and toxic gases. The EPA study lists "remote control technologies" (34 percent of patents) as the biggest European innovation focus. Behind this is highly automated robot technology for safe dismantling and discharging (deep discharge). This is precisely where Bosch, as a factory equipment supplier, delivers the right Industry 4.0 systems.
• The process engineers (Duesenfeld): The start-up company Duesenfeld from Lower Saxony is considered a technological hidden champion. Instead of melting down batteries at 1,400 °C (approx. 2,550 °F) in an energy-intensive process (pyrometallurgy), Duesenfeld uses a patented mechanical-thermodynamic process. The batteries are shredded under inert gas. This means that the electrolyte does not evaporate but is recovered, as is the graphite. The result: a material recovery rate of over 90 percent with 80 percent less energy input.
• The chemists (BASF): BASF covers the final stage of recycling, the so-called hydrometallurgical extraction (26 percent of European patents). In Schwarzheide, the company operates one of the most modern plants in Europe. Here, the "black mass" left over after shredding is chemically broken down into its components (lithium, cobalt, nickel) to produce high-purity new cathode material.

Technological Leadership as a Geopolitical Weapon

The race for the most efficient recycling technology is in full swing and has long since taken on a geopolitical dimension. "In the age of electricity, batteries have become a cornerstone of energy security and industrial competitiveness," summarizes IEA Executive Director Fatih Birol.

For engineers and companies in the electronics and automation industry, this means one thing above all: there will be a massive demand for sensor technology, robotics and power electronics along the dismantling and processing lines for used batteries in the coming years. (heh)

References

The full report "Battery Circular Economy - Innovation Trends for a Future Source of Critical Materials"

The English-language IEA report "The State of Energy Innvation 2026"

Deep Tech Finder of the EPO

Beta version of the cartography of energy storage