Powering the Future 2025

Solutions needed Because of the factors outlined above, the development of a full-fledged circular economy in Bermuda is not a feasible solution for managing EOL vehicles. Instead, the only viable options for proper battery disposal are exporting used batteries at the lowest cost possible or shredding batteries for export. To transport retired batteries off the island, Bermuda will require safe, cost-effective shipping options to a region that has adequate infrastructure for reuse or recycling. To comply with the Basel Convention, the intended purpose of the exported lithium-ion batteries (i.e. repurposing or recycling) needs to be designated before leaving Bermuda and there must be an agreement with a certified agent in the destination country. Any solution requires optimizing the residual value of the battery or battery materials and the logistics and handling costs. Exporting batteries for second-life use might yield higher returns but would also involve higher transport costs due to safety concerns. It would require battery testing and diagnostics to ascertain quality for reuse or repurposing. By contrast, shredding batteries on the island helps mitigate the risk of fire during storage, reduces shipping costs and is viable if the batteries are designated to be recycled. This pathway will require a shredding facility on the island, and related workforce training and certification for disassembly and handling of retired EVBs. The case of Bermuda highlights some of the risks and challenges faced by any market that lacks the infrastructure needed to safely and responsibly manage EOL batteries, especially if it faces additional challenges related to costs, logistics and viability of battery management options. Developing solutions early in the EV transition will be critical to mitigating the environmental and social risk inherent in improper disposal of EVBs. Invest in the workforce needed for a circular battery economy by training and reskilling for circular jobs, integrating and preventing development of informal markets, and prioritizing principles of just transition. What is this change, and why is it needed? The transition to a circular battery economy provides opportunities to build socio-economic value through workforce development and necessitates intentional planning with a focus on equity to ensure a just transition. The circular economy’s workforce needs will evolve. If a fully circular battery economy is established, the economies of raw material extraction markets will significantly change, with job needs shifting towards other parts of the value chain such as refining, manufacturing and EOL management. Intentional planning will be needed to ensure a just transition for these workers, enabling them to move into other segments of the EVB value chain or other industries. While it will be important to reskill and upskill workers to have flexibility and adaptability to move into roles outside of the EVB industry, the recommendations in this report focus on opportunities within the EVB industry. In addition to the need to transition workers out of raw material extraction markets in the long term, in the short term, there is significant need to develop the workforce required to support a circular battery economy. For example, collecting, sorting, disassembling, repairing and repurposing are critical roles that will need to be filled. These will require reskilling, education, training and certification. Given the nascent nature of the EVB industry today, stakeholders throughout the value chain must continually evaluate the evolving needs of the industry and update their strategies to develop the workforce needed and support the transition of workers out of roles that are no longer needed. It is estimated that there will be 10 million jobs across all segments of the global battery value chain by 2030, driven largely by EVs, with more than half of these in developing countries.129 For some segments of the value chain, such as recycling, the impact of transitioning to a circular economy is well researched and understood; for example, it is estimated that every 1,000 tons of lithium-ion batteries collected at EOL create 15 jobs connected to collection, dismantling and recycling of those batteries.130 For other segments of the value chain, the impact of circularity on workforce needs is more challenging to quantify. For example, a circular economy can help reduce supply gaps and enable further production of EVBs, creating battery manufacturing jobs; but a truly circular economy will also extend the life of a battery, which will reduce manufacturing needs. To understand the economic development opportunities that battery circularity presents within the refining market, more research is needed to disaggregate the refining and manufacturing market skills and workforce. If managed responsibly, workforce transition in raw material extraction markets can present opportunities for socio-economic growth, including the chance to develop new industries and transition workers 3.5 Workforce development and transition Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 32