The World Economic Forum, RMI and the Global Battery Alliance (GBA) collaborated with experts from around the world and throughout the battery value chain to develop this report. The team gathered input and feedback from an advisory panel of experts from industries and sectors throughout the global EVB value chain; from the Forum’s Global Future Council on Responsible Resource Use; and from members of the GBA. This report first examines the most pressing concerns about today’s battery value chain, the environmental and social impacts connected to those concerns, and the opportunities that can be captured or lost, depending on the actions taken or not taken. Though important, this report does not address issues linked to mining practices and how to transition to more environmentally and socially responsible mining practices as this aspect has recently been well discussed by the “Nature Positive Sector Transition for Mining and Metals” report of the World Economic Forum. Using a combination of stakeholder input from an expert advisory panel, input from collaborating organizations and secondary research, this report delivers a set of recommendations to address these concerns to mitigate risk and capture opportunities in a way that benefits all. These recommendations aim to ensure the same risks in today’s value chain are not replicated in a circular economy, and that new ones are not created. The report also aims to capture the opportunities at hand in an equitable manner so that all markets benefit from the transition to a circular battery economy.1.3 Report approachCircularity is about more than “closing the loop” and reusing materials. It is the tool that enables an efficient value chain while balancing environmental, social and economic priorities. A circular battery economy can: –Minimize the environmental and social impacts associated with EVB production and improper disposal, and reduce the consequent negative perceptions of EVBs and EVs. –Enable widespread transition to EVs by reducing supply gaps and strengthening the resilience of the value chain. –Decrease geopolitical tensions by reducing competition for resources from the handful of countries with critical mineral reserves or processing capacity. –Increase geopolitical and economic standing by involving more nations in the EVB value chain and capitalizing on value creation opportunities. –Increase access to clean energy through repurposing of EVBs for renewable energy storage and grid stabilization. –Increase access to clean mobility by enabling widespread EV transition through reduced supply gaps, lowering the cost of EVs with reused batteries, and increasing access to EV charging with repurposed EV batteries. Moving from a linear economy to a circular economy will not eliminate all negative impacts, inequities and inefficiencies, and can itself cause unintended consequences if not designed thoughtfully and holistically and managed in a responsible, equitable manner. Transitioning to a circular economy necessitates change, and it is essential to ensure that countries heavily dependent on their current role in the EVB value chain are well-positioned for this transition and are not left behind. As the United Nations (UN) emphasized in its guiding principles on critical energy transition minerals, “Justice and equity must underpin mineral value chains.”10 Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 9

Powering the Future 2025