Recycling could significantly reduce Europe’s dependence on imported electric vehicle (EV) battery metals, supplying up to a quarter of the region’s EVs by 2030, according to a new study by Transport & Environment (T&E). However, the EU and UK risk missing out on this opportunity as nearly half of local recycling projects are at risk of being cancelled.

Source: T&E

The study highlights that recycling materials from end-of-life batteries and gigafactory scrap could supply Europe with the critical metals needed for EVs. By 2030, this recycling could contribute to the production of up to 2.4 million electric vehicles locally. Recycling could provide 14% of the lithium, 16% of the nickel, 17% of the manganese, and 25% of the cobalt required for electric cars, according to the findings. Furthermore, Europe could achieve near self-sufficiency in cobalt by 2040.

Source: T&E

Julia Poliscanova, senior director for vehicles and e-mobility supply chains at T&E, emphasized the importance of the opportunity: “If Europe delivers on its recycling plans, it can slash its reliance on imported critical metals. The expected volumes of locally recovered materials can enable Europe to build millions of clean electric vehicles locally.”

In addition to reducing reliance on imports, recycling can also replace the need for primary ores. T&E’s research suggests that recycling could eliminate the need for 12 new global mines by 2040—four for lithium, three for nickel, four for cobalt, and one for manganese. This would also reduce the environmental impacts associated with mining, such as harm to water, soil, and biodiversity.

Recycling in Europe could also reduce the carbon footprint of lithium sourcing by nearly 20% compared to extracting lithium in Australia and refining it in China, thanks to the region’s cleaner electricity grid. However, to fully realize these economic and environmental benefits, Europe must scale up its recycling capacity.

The study warns that almost half of the announced recycling capacity for the region is either on hold or uncertain due to high energy costs, technical challenges, and a lack of financial support. T&E urges the EU and UK to prioritize recycling in their policies and funding programs. The upcoming Circular Economy Act should focus on scaling up local recycling facilities, restricting the export of battery waste, and streamlining the transport of end-of-life batteries within Europe.

Poliscanova concluded, “Neither the EU nor the UK are ready to capture the recycling opportunity. It’s time to treat battery recycling like another clean tech and prioritize it in policy and funding decisions.”