Battery recycling emerges as a critical secondary mineral source

The global battery recycling industry is evolving into a vital “second mine” for critical minerals like lithium, nickel, cobalt, copper, aluminum, and graphite. As electric vehicles and energy storage systems scale, the International Energy Agency (IEA) projects that secondary supply could double its contribution by 2040, with average recycling rates for key minerals potentially rising from 10% to nearly 20%.

Effective recycling relies heavily on logistics, including the collection, classification, and safe transport of dispersed battery packs. A key challenge is the current concentration of capacity; China holds over 75% of global pre-treatment capacity and approximately 90% of material-recovery capacity. Diversifying this supply chain requires both new processing plants and reliable feedstock collection systems.

Industry experts emphasize the importance of triage, where batteries are assessed for second-life potential. Packs with sufficient health can be repaired or repurposed for stationary storage, while more degraded units are routed for material recovery. Regulatory frameworks, such as the EU Batteries Regulation, are increasingly mandating efficiency standards, requiring lithium-based battery recycling efficiency to reach at least 65% by the end of 2025.