Powering the Future 2025

Develop regional, circular value chains within a global circular economy, and facilitate responsible cross-border movement of battery materials. What is this change, and why is it needed? A responsible circular battery supply chain should ensure that everyone shares in the benefits of both first- and second-life EVBs while also sharing the costs of EOL management. Expanding participation in the EVB value chain by creating regional circular loops can allow raw materials – whether sourced from mining or recycled batteries – to be utilized in the regions where they are produced in addition to being exported to benefit other parts of the world. This approach would also enhance the resilience of the EVB supply chain by reducing dependence on a few countries, decreasing the need for trade alliances and restrictions, and reducing emissions, costs and safety challenges associated with transporting battery materials. However, these regional loops must function within a global circular economy that promotes the sharing of technology, knowledge and resources. The goal is not to restrict or close borders but to create a more inclusive system for the benefit of people, the environment and the supply chain. To support this system, infrastructure for battery collection, preprocessing and metal recovery will be essential in regions with growing EV adoption. At a minimum, regions expecting EV uptake should develop networks for battery collection, disassembly, diagnostics and preprocessing to ensure easier handling and transport of battery materials to recovery centres. In certain cases, such as small island nations, it may be more cost-effective to ship EOL batteries to recyclers rather than establish local preprocessing facilities. It is also important to recognize the need for some consolidation of value-chain segments to achieve economies of scale, to make these operations economically viable and minimize their environmental footprint. While regionalization of recycling can be beneficial, the optimal scale is essential to achieve the lowest possible environmental footprint. 3.4 Regional value chains and cross-border movement The battery recycling process FIGURE 9 Retired EV battery collectionDiagnostics, discharging, sortingPreprocessing via mechanical shredding Battery pack dismantlingHydro- metallurgical recyclingBattery-grade lithium, nickel, cobaltOther recycling intermediates (plastics, aluminum, iron, etc. ) Black mass containing lithium, nickel, cobalt Preprocessing via pyro- metallurgyNickel-cobalt alloy Slag containing lithium and other elements Metal recovery step Preprocessing step Product Source: RMI Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 28