Li-ion battery recycling ‘not profitable’ in Europe

The recycling of lithium-ion batteries in Europe is not profitable, largely because of transport costs, according to production engineering experts at Aachen University in Germany. 

Their analysis of the economic and structural challenges of lithium-ion battery recycling is based on responses from 13 stakeholders in the battery value chain, including vehicle manufacturers, logistics providers and recycling companies. The processes investigated include collection, classification, transport, storage, mechanical treatment and chemical processing.

‘The findings confirm that current recycling practices are not profitable: transport can account for up to 70% of total recycling costs, chemical processing infrastructure requires investments of around EUR 23 per kg of input material, and many recycling plants operate at less than 10% of their capacity due to insufficient battery return volumes,’ is their downbeat assessment.

Co-ordinated approach

The report from Production Engineering of E-Mobility Components (PEM) at RWTH Aachen University says the findings highlight the need for a co-ordinated systemic approach rather than isolated process innovations.To address these challenges, a decentralised structure is proposed, with regional pretreatment facilities and centralised chemical processing hubs, to reduce transport distances, lower costs and improve scalability.

The authors write: ‘A scalable value creation network, based on regional pretreatment and centralised hydrometallurgical plants, also called a spoke-and-hub network, was identified as a promising strategy to reduce costs and improve process efficiency.’

Producer Responsibility

Stakeholders interviewed emphasised the importance of stable battery return flows, access to batteries through clear ownership structures, and legal clarity regarding the treatment of used batteries. Organisational models based on Producer Responsibility and battery leasing could help ensure transparency, control and compliance with European regulatory goals.

The report concludes that future research should focus on developing implementable blueprints for circular battery value networks. Such blueprints would integrate technical, legal and economic perspectives: assessing scale, location requirements and the accounting treatment of batteries across countries.