Powering the Future 2025

Foreword As global electric vehicle (EV) sales continue to grow, so do concerns about the EV battery supply chain’s ability to meet increasing demand. Although there is sufficient planned manufacturing capacity, the supply chain is currently vulnerable to shortages and disruption due to geopolitics, changing trade alliances, conflict, extreme weather and other factors. Many are also apprehensive about the supply chain’s heavy reliance on the newly mined minerals that go into EV batteries – minerals whose extraction can involve human rights abuses and environmental degradation. Another source of risk is the inadequate infrastructure in most parts of the world to manage the growing number of batteries reaching end of life. Addressing this challenge will require significant investment, intense stakeholder collaboration and effective policies. It’s clear that urgent action is needed. But even in the face of these significant challenges, there are solutions. A circular battery economy – one in which EV batteries are repaired, reused, repurposed and recycled – can meaningfully address the challenges described above and deliver better outcomes in regions that have not previously generated value from the automobile industry. Battery circularity decreases the need for virgin materials, helping meet regional mineral supply gaps – which can increase the resilience of the supply chain and mitigate national security risks – while reducing the harms associated with mining. And it’s important to note that a circular battery economy will not only lessen the supply chain’s detrimental effects but will also create jobs and encourage economic growth in a diverse set of geographies. In this report from the World Economic Forum, in collaboration with RMI and the Global Battery Alliance, we discuss the risks of continued reliance on a linear battery economy. We also present an alternative vision of the future, one in which we electrify transport at the pace and scale needed to meet global and national climate goals while respecting human rights and the environment. Perhaps most importantly, we suggest concrete steps that stakeholders around the world can take to make a circular battery economy a reality. The good news is that we’re not starting from scratch. Over the past few years, an increasing number of diverse stakeholders with varying interests have realized that we all have much to gain from a circular battery economy. They have been working to increase the supply chain’s transparency, improve the performance and sustainability of batteries through new chemistries and build the infrastructure needed to manufacture and recycle batteries – but we need to do much more. We must continue to accelerate this effort and adopt an attitude of informed optimism – one that makes clear that although the obstacles we face are significant, they are by no means insurmountable. As we work together in pursuit of a common mission, we need to acknowledge that we have the chance to turn challenges into opportunities. Let’s get started.Mauricio Cárdenas Co-chair, Global Future Council on the Future of Responsible Resource Use, World Economic Forum Jon Creyts Chief Executive Officer, RMI Gillian Davidson Co-chair, Global Future Council on the Future of Responsible Resource Use, World Economic Forum Gim Huay Neo Managing Director, World Economic Forum Inga Petersen Executive Director, Global Battery Alliance Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 3