A recent study by RWTH Aachen University claims that the recycling of electric vehicle batteries in Europe is currently not profitable. According to the analysis by the Chair of Production Engineering of E-Mobility Components (PEM), particularly high investments are required for transportation, which accounts for up to 70 percent of the total costs, depending on the batteriesʼ classification. Another challenge is that most of the recovered black mass has to be sold abroad due to a lack of European demand.
Capacity utilization of less than ten percent
“Given the critical importance of lithium-ion batteries in the electric vehicle market and the limited availability of critical raw materials like lithium, cobalt, and graphite, effective and profitable battery recycling processes are vital for reducing European dependency on imports and enhancing the sustainability of batteries,” the study states. However, according to the authors, the infrastructure for chemical processing currently requires investments of around 23 euros per tonne of input material, and many recycling plants are currently operating at less than ten percent of their capacity with electric vehicle batteries due to the significantly low volume of batteries returned. In order to improve economic efficiency, the analysis proposes a decentralized recycling structure with regional pre-treatment facilities and central units for chemical processing to reduce transport distances, to lower costs, and to improve scalability.
Input from various parts of the value chain
The analysis “Economic and Structural Challenges of Lithium-Ion Battery Recycling in Europe: A Stakeholder-Based Assessment” builds on interviews with 13 players in the battery value chain, including vehicle manufacturers, logistics providers, and recycling companies. The processes investigated include battery collection, classification, transportation, intermediate storage, mechanical treatment, and chemical processing.
Source:
https://www.sciencedirect.com/science/article/pii/S0956053X25003733#dfig1
