Powering the Future 2025

FIGURE 3 Upstream Mines extract raw materials; for batteries, these raw materials typically include lithium, cobalt, manganese, nickel and graphite.Processors and refiners purify the raw materials, then use them to create cathode and anode active battery materials. Battery manufacturers assemble the battery cells into modules and then pack and sell them to automakers, who place the finished batteries in EVs.When batteries no longer serve their original purpose, they can be reused or recycled.DownstreamEnd of lifeMidstream The EV battery value chain Source: RMIThe definition of “circular economy” varies based on the use case and the perspectives of different stakeholders. Some may focus more on environmental benefit, and others on the economic implications. Some may emphasize closed-loop systems, while others emphasize efficiency. One definition based on an analysis of 221 definitions goes like this: “The circular economy is a regenerative economic system which necessitates a paradigm shift to replace the ‘end of life’ concept with reducing, alternatively reusing, recycling, and recovering materials throughout the supply chain, with the aim to promote value maintenance and sustainable development, creating environmental quality, economic development, and social equity, to the benefit of current and future generations. It is enabled by an alliance of stakeholders (industry, consumers, policy-makers, academia) and their technological innovations and capabilities.”9As this definition indicates, it is important to take a holistic approach to circularity: one that encompasses sustainable development, environmental quality, economic development and social equity. A circular economy for EVBs is one in which EVBs are used for as long as possible in their first application (“first life”); then reused in other EVs or repurposed for placement in other applications, like energy storage (“second life”); then recycled, when the materials in the battery are extracted and returned to the refining stage of the value chain to be used in new batteries. Taking a holistic approach, a circular battery economy must be designed with systems thinking to prioritize minimizing environmental harm and maximizing equity – ensuring that all can benefit from this new system, and none have to disproportionately bear the cost of change.1.2 A circular battery economy Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 8