Set performance and data standards and finance R&D for design innovation that prioritizes disassembly and recyclability alongside safety, cost and range. What is this change, and why is it needed? A cascading hierarchy of LIB applications that prioritizes repurposing and reusing EOL batteries higher than recycling can yield substantial environmental and economic benefits. A recent study found that when choices are made at each stage of second life and recycling to provide the highest economic and environmental returns for the battery’s chemistry and SOH, reusing or repurposing LFP batteries improved profits by 58% and reduced emissions by 18% compared to hydrometallurgical recycling without second life; NMC batteries saw profits boosted 19% and emissions reduced 18%.66 Non-standardized pack designs and varying bonding techniques such as fasteners, glues and adhesives used by manufacturers pose a challenge to repurposing, reusing and recycling batteries. The variety in components and design philosophies means that EOL batteries cannot be easily discharged and dismantled by automation, which adds significant effort, time and cost to preprocessing. Stakeholders in the EVB value chain need clarity on long-term regulations for battery recycling and targets for all commonly used battery chemistries, which must be agreed upon through consultation with industry. Incentives are essential for making the business case for recycling batteries with low material value. Batteries need to be designed to allow for disassembly that grants easier access to battery modules and cells. This includes providing user manuals with part numbers; exploded-view diagrams; disassembly sequences; guidance on discharging a battery completely; safety measures; and information on fillings, casings, fixtures and reversibility triggers for adhesives. In addition to disassembly, batteries must be designed for recyclability, which requires certain design choices regarding materials and battery- cell form factors. For instance, cylindrical cells use fire-retardant plastic moulding that is not recyclable, whereas prismatic cells may use busbars and compression plates to perform the same safety function. Several obstacles stand in the way of these design changes, including: –Potential for cost increases: Redesigning batteries may increase costs of battery cells and packs. For instance, cell-to-pack configurations eliminate the module level in conventional battery design, resulting in cost savings of up to 40%.67 Introduction of modular design features might require additional components and reduce these cost savings. –Conflict among design priorities: Circular design priorities can conflict with one another; for example, increasing the durability of a battery can decrease the ease of disassembly because of the need to use permanent attachment mechanisms. Similarly, cell-to-pack configurations reduce ease of disassembly but help with lightweighting by providing some structural integrity to the EVB. –The need for research and development (R&D) funding: Lastly, innovation that balances EOL management with performance and economic competitiveness will require R&D investment by both incumbents and start-ups. Smaller firms may not have the resources to build and operate the R&D-scale and pilot-scale production facilities required to fast-track the R&D process.68 In such instances, funding is not always available at the necessary cost and R&D will compete with other organizational priorities, extending the R&D timelines. In addition to design change, stakeholders need access to standardized BMS data to enable reuse and repurposing. Repurposing EVBs for optimal performance and safety in second life may involve disassembling battery packs to replace the BMS or degraded modules. A complete understanding of battery health, including SOH and degradation over time, helps diagnose faults and forecast remaining useful life. However, shared access to BMS data remains a challenge due to data privacy69 and tampering concerns.70 The resulting lack of information regarding the condition of the EVB, combined with certain attributes of battery design, exposes workers to safety risks. 3.2 Design change and data standards information sharing, collection rate reporting, exports and imports, battery or materials flow tracking can facilitate reuse, repair and collection at EOL and reduce leakage. Studies indicate that data availability on battery composition, dismantling guidelines, battery performance, and remaining useful life can result in material savings for recyclers and second-life operators. Adding data attributes around recycled content in battery can also help original equipment manufacturers (OEMs) offer certified differentiated products to their customer.65 Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 20

Powering the Future 2025