Unlocking the Hidden Value of Used Electric Vehicle Batteries

Felicity Bradstock is a freelance writer focusing on Energy and Finance, with a Master’s degree in International Development from the University of Birmingham, UK.

Used electric vehicle batteries retain significant capacity and can be repurposed, recycled, or reused to recover valuable minerals like lithium, nickel, and cobalt. Recycling these batteries involves shredding them to create “black mass,” which contains these critical minerals for making new batteries. Expanding the recycling and reuse of EV batteries can help alleviate supply chain pressures, reduce reliance on limited mineral resources, and address human rights issues related to mining operations.

The production of lithium-ion batteries for electric vehicles (EVs) requires substantial amounts of critical minerals such as graphite, lithium, cobalt, copper, phosphorous, manganese, and nickel. With a finite supply of these minerals and increasing global demand, maximizing the use of EV batteries is essential. Disposing of these batteries when they lose power could mean wasting significant amounts of critical minerals annually, which could instead be reused effectively.

In 2024, approximately 17 million battery-electric and hybrid vehicles were sold, with early forecasts indicating a potential increase to 20 million in 2025. The current trend shows that nearly 20% of all vehicle sales are electric, a figure expected to rise as governments implement policies limiting fossil fuel-powered vehicles and automakers expand their EV offerings.

Contrary to popular belief, EV batteries still have potential uses even when reaching the end of their lifespan. Many batteries last around 12 to 15 years, with some lasting up to 40% longer in practice. Properly categorizing batteries based on their health status and effectively reusing or recycling them can help recover critical minerals and support the production of new batteries.

Battery recycling is gaining traction as a means to recover valuable minerals from EV batteries and reduce resource waste. The process involves shredding batteries to produce “black mass,” a substance containing lithium, nickel, cobalt, and graphite that can be used for new batteries. As demand for critical minerals rises and the mining industry faces challenges, recycling batteries becomes an essential practice to ensure a sustainable supply chain.

In the United States, initiatives like the 2022 Inflation Reduction Act have supported companies like Li-Cycle, which recovers critical materials from lithium-ion batteries. Projects in the UK and Europe also aim to recycle end-of-life batteries to meet the growing demand for critical minerals in battery production.

Global expansion of EV battery recycling and reuse shows significant potential, but challenges like operational costs and skill shortages hinder progress. Encouraging investments in battery recycling through government policies and financial incentives can help alleviate supply chain pressures and promote sustainable practices in the EV industry.