As electric vehicles (EVs) continue to grow in number, it’s critical to consider what happens when the vehicle reaches the end of its life—especially since its battery still holds valuable materials that can help build a more resilient domestic supply chain. EVs primarily use lithium-ion batteries that contain critical minerals and materials such as lithium, nickel, manganese, cobalt, and copper. As EV batteries reach their end-of-life (EOL), they are most commonly presented as electronic or hazardous waste. In reality, these batteries are part of a larger closed-loop supply chain for critical materials in the United States, with battery recycling offering a way to recover these high-value materials rather than discarding them. Over time, this growing sector will help to reuse valuable materials, lower production costs, and contribute to building a secure battery supply chain that supports economic growth and advances national security goals. As detailed in ZETA’s new white paper, Closing the Loop: Strategies for Electric Vehicle Battery Management and Critical Mineral Recovery, battery recycling is not just waste management, but an essential step toward a more circular, secure, and competitive energy economy. 

Part of this conversation is around securing access to critical minerals and materials, which is an increasingly urgent priority as demand for EVs and other modern technologies grows over the next decade. Most of the materials used in EV batteries are currently sourced and processed overseas. According to the International Energy Association (IEA), China controls more than 70 percent of the global lithium-ion battery industry. Historically, a large portion of the U.S. EV battery supply chain has relied on imports from overseas, which are subject to market fluctuations or geopolitical risks. 

Domestic battery recycling provides one possible solution to help reduce that dependence. By recovering high-value materials from end-of-life EV batteries and repurposing them, the U.S. can reclaim these vital resources and establish a more circular battery economy. Increasing domestic recycling capacity is a path to developing a competitive supply chain and strengthening national security. Many of the same materials powering EVs are also found in everyday consumer electronics, such as cell phones and laptops, and in defense-related equipment like satellites and missile systems. Proactive battery management policies can identify pathways that will lead to more stable access of critical materials for defense systems and cutting-edge technologies.

The EV battery recycling market is poised to take off dramatically in the years ahead and could make up a solid portion of new batteries in the future. By 2027, Argonne reports that approximately 200,000 metric tons of EV batteries in the U.S. are expected to reach the end of their initial service life. These volumes represent a significant opportunity to supply the critical minerals and materials required to produce 1.55 million new EVs annually. That’s enough recycled material to produce 10 percent of new cars sold—assuming annual sales remain around the 15.5 million vehicles sold in 2024. This wave of EOL batteries will be a strategic resource opportunity that must be met with deliberate, forward-looking policy. 

Beyond strengthening the domestic supply chain, battery recycling is also fueling job growth and investment across the country. The ZETA white paper discusses the economic and jobs impact of the nearly 20 battery recycling facilities that have been announced or are operational in the U.S., including projects led by Redwood Materials, Princeton NuEnergy, and Cirba Solutions. Together, these facilities are expanding U.S. capacity to recover critical materials and attracting more than $9.65 billion in investments in states like Nevada, South Carolina, and New York. These recycling facilities could potentially support up to 15,000 jobs by 2035, while giving manufacturers access to a reliable domestic supply of critical materials.

The economic benefits are just one piece of the equation. Research shows that advanced recycling techniques like hydrometallurgy and direct recycling can recover more than 95% of critical minerals from recycled batteries while conserving energy and water. These techniques help lower lifecycle emissions and reduce the overall environmental impact of battery production. Battery recycling also assists manufacturers in stabilizing their raw material costs, providing another pathway for sourcing the necessary critical materials needed to build new EV batteries.

Despite these advantages, there are still significant challenges to scaling up this industry. Among these challenges are gaps in transportation infrastructure for used batteries, unclear cost and liability responsibilities among stakeholders, and inconsistent regulations for safe handling, design for disassembly, and traceability. These barriers raise costs and inhibit operational efficiency across the supply chain. Stronger coordination among manufacturers, recyclers, and policymakers will be critical to building a cohesive strategy that supports long-term growth for EV battery recycling.

A collective effort is needed to overcome these obstacles and support the growth of a robust EV battery recycling industry. The paper outlines several policy recommendations that support the development of a cohesive national battery recycling strategy, which includes clearer definitions and voluntary guidelines for when and how EOL battery responsibilities shift between stakeholders across the supply chain. For example, used EV batteries retain significant economic and strategic value due to their recoverable minerals, so they should not be treated as traditional waste. Policymakers should recognize these materials as important commodities and support a battery management hierarchy that prioritizes reuse, repair, and recycling to extend their lifecycle. Recognizing the value of used EV batteries and encouraging responsible reuse and recycling can help unlock the full potential of a stronger, circular battery recovery system. 

With hundreds of thousands of EV batteries set to reach end-of-life in the coming years, building a strong recycling system is essential. As EV adoption continues to grow, an efficient battery recycling system will be crucial to maintaining momentum and optimizing the economic, environmental, and national security advantages of transportation electrification. This paper provides a market overview and roadmap for how the U.S. can close the loop and take the lead in the next phase of global EV battery innovation.

For more details, read the full white paper, Closing the Loop: Strategies for Electric Vehicle Battery Management and Critical Minerals Recovery