WASHINGTON, D.C.—The Zero Emission Transportation Association (ZETA) Education Fund published a new white paper today titled ‘Closing the Loop: Strategies for Electric Vehicle Battery Management and Critical Materials Recovery.’ The paper provides an overview of the emerging domestic battery recycling supply chain, its value for energy and national security, and policy recommendations to support continued growth in the United States.
Battery recycling is a growing part of the electric vehicle (EV) and battery supply chain, with 20 advanced recycling facilities having been announced or deployed in the United States, totaling more than $9.65 billion of private investment. Modern processing techniques mean that more than 95 percent of the critical minerals and materials in a battery can be recovered. By 2035, domestic battery recycling is expected to recover enough material to supply 1.55 million passenger EVs, which would represent 10 percent of total passenger vehicle sales in the United States in 2024.
“The global EV market has experienced exponential growth over the past five years and is projected to continue its expansion,” said Leilani Gonzalez, ZETA’s Chief of Staff and Policy Director. “While demand for new supply will always exist, recovering critical minerals and materials from end-of-life EVs and other battery applications presents an opportunity to diversify sourcing, reduce production costs, and strengthen our domestic, circular supply chain.”
Today, China accounts for 80 percent of global battery recycling capacity. The United States accounts for less than two percent of capacity, meaning that the majority of batteries must be exported to be recycled currently. Growth in domestic capacity is slated to change this dynamic.
“Treating end-of-life batteries as waste ignores the long-term value of these commodities,” said Corey Cantor, ZETA’s Research Director. “Boosting the availability of these materials will improve supply chain resilience while also mitigating the impacts of market fluctuations and geopolitical risks. At the same time, increasing the domestic supply of critical minerals and materials will reduce dependence on adversary-controlled supply chains, thereby enhancing energy and national security.”
Battery recyclers face specific challenges that come with standing up a new supply chain. The authors say that “a market-based approach—where public policy enables, rather than constrains, private-sector leadership—will be key” to continued growth.
The authors recommend that policymakers develop:
- Clear and consistent definitions and responsibilities across the battery value chain;
- Federal support and interest in using recycled content and recovering domestic critical materials;
- Performance-based standards that route batteries to qualified, advanced recyclers; and
- Infrastructure and R&D investments that scale recovery capacity safely and efficiently.
The white paper can be downloaded here.
