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End-of-Life Li-ion Batteries

7 min reading time

Lithium-ion (Li-ion) batteries have become ubiquitous in our daily lives, experiencing a consistent surge in demand over the past decade. Their applications span a wide range, from consumer electronics and portable devices to electric vehicles (EVs) and stationary energy storage systems. Notably, electric vehicles have been the primary driver behind this growth, emerging as the sector with the most substantial share of the total global demand for Li-ion batteries. Projections indicate that the market for EV batteries is expected to surpass US$370 billion by 2034.



With the escalating demand for Li-ion batteries, there is a parallel need to address their sustainability across the entire lifecycle. This encompasses aspects such as raw material extraction and processing, battery use or potential reuse, and, significantly, end-of-life (EOL) considerations. The challenges associated with some of these factors have spurred the exploration and development of alternative energy storage technologies. Notably, these alternatives aim to mitigate the risk of supply bottlenecks related to materials like lithium, cobalt, and nickel.

One such alternative is Na-ion batteries, which can provide performance characteristics comparable to Li-ion without relying on lithium or cobalt. Additionally, redox flow batteries present an option by utilizing more affordable and widely available materials like zinc, iron, or organic compounds, albeit with vanadium electrolytes being predominant in current deployments. Despite the potential of these technologies to diversify material demand toward more widely available and environmentally friendly options, the forecast suggests that the demand for Li-ion batteries will continue to surge. Consequently, the supply of Li-ion materials and effective end-of-life management will remain critical considerations.

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Li-ion at end-of-life (EOL)

Once a Li-ion battery reaches the end of its initial life, various options can be considered for its management. These options include disposal, recycling, or repurposing for second-life applications.

1. Disposal: Simply discarding Li-ion batteries can lead to environmental hazards. The potential leakage of flammable and hazardous electrolytes into the environment poses risks. Moreover, disposal neglects the remaining value or materials within the battery, making it an unsustainable option.

2. Repurposing (Remanufacturing): Repurposing involves giving Li-ion batteries a second life through applications other than their original use. For instance, batteries from electric vehicles (EVs) can be repurposed for stationary energy storage applications. This approach aims to extract maximum value from the battery by utilizing it in a less demanding application, extending its overall lifespan.

3. Recycling: Recycling is a crucial option for managing end-of-life Li-ion batteries. This process focuses on recovering valuable materials from the battery, including those within the cell and other components of the battery pack. Recycling is essential for battery manufacturers aiming to mitigate potential future raw material supply constraints, navigate fluctuating raw material prices, and establish a more localized and sustainable material supply chain.


Selecting the appropriate end-of-life option for Li-ion batteries is pivotal for environmental responsibility, resource conservation, and the long-term sustainability of the battery industry.

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Li-ion Battery Recycling Process

Li-ion battery recycling involves the extraction of materials such as lithium, cobalt, nickel, manganese, copper, and aluminum. The recycling process combines mechanical, hydrometallurgical, and pyrometallurgical steps to recover valuable metals from spent batteries.

1. Mechanical Processing:

- Recyclers begin by disassembling battery packs to obtain individual Li-ion cells.

- These cells are mechanically crushed to form a powder known as black mass.

2. Hydrometallurgical Processing:

- Chemical reagents are used in hydrometallurgical processing to selectively extract valuable metals from the black mass.

- This process produces battery-grade metal salts, such as lithium carbonate and cobalt sulfate

- The metal salts can undergo further processing to manufacture precursors for cathode active materials in new batteries.

- This recycling approach is cost-effective compared to manufacturing new cathodes from virgin materials, and it often results in lower environmental impact.

3. Pyrometallurgical Processing:

- Pyrometallurgical processing takes place in a shaft furnace, employing high-energy methods.

- This process produces a mixed metal alloy and a slag stream containing lithium, manganese, and aluminum.

- Additional hydrometallurgical processing is needed to recover all valuable metals from the intermediaries.

Market Trends:



- Hydrometallurgy is a dominant technology in Li-ion battery recycling due to its higher efficiency and lower energy requirements compared to pyrometallurgy.

- Recyclers adopting a full Li-ion recycling process need to scale both mechanical and hydrometallurgical capacities.

- Some players employ 'Spoke and Hub' models, where spoke facilities focus on disassembly and mechanical processing, and hub facilities utilize the black mass to produce battery-grade salts.


As market trends evolve, the adoption of hydrometallurgical technologies is anticipated to play a key role in meeting the increasing demand for efficient and sustainable Li-ion battery recycling.

Second-Life Batteries:

Repurposing for Extended Use

When a battery reaches the end of its first life and no longer meets the demands of an electric vehicle (EV), it may still find purpose in a less demanding stationary energy storage application. The end-of-life (EOL) point is typically defined as when the maximum battery capacity falls to 70-80% of its rated value, a consensus in the EV industry. Testing retired batteries is crucial to ensuring their fitness for reuse, and key assessments include State-of-Health and internal impedance tests. Batteries with a State-of-Health of 70-80% are generally deemed suitable for second-life applications.

Battery pack designs vary among original equipment manufacturers (OEMs), making automation challenging. Manual labor is required for the disassembly of EV battery packs, a task that demands skilled workers due to diverse pack designs. Disassembling to the cell level, while more time-consuming, increases manual labor costs. Consequently, many second-life battery startups, particularly in Europe and North America, integrate EV batteries at the pack level for second-life applications. These packs can be strung in parallel to create stationary storage systems ranging from kilowatt-hours to megawatt-hours. China stands out as a major hub for second-life batteries, often used to provide backup energy for telecom towers.

While repurposing at the pack level reduces costs, the overall pack performance is limited by the weakest-performing cell. Repurposers heavily rely on battery analytics tools and software to monitor battery performance closely. Conditions may be established with customers for faulty battery replacement. Repurposers need to ensure that procured batteries meet certain performance specifications, relying on partnerships with automotive OEMs to manage the supply of high-quality batteries and address those that fall below minimum standards.

To recycle or repurpose batteries for second-life applications?

Repurposing EV batteries for second-life applications is arguably a more technically demanding operation that relies more on manual labor and with less predictable economics. While pack-level integration reduces remanufacturing costs, it relies more on repurposers using the best-performing batteries they are supplied with and monitoring the performance of these batteries closely over their second life. Crucially, repurposing does not replace recycling but simply delays it and maximizes the value of the battery.

Policies will drive Li-ion battery recycling in some key regions, alongside battery manufacturers looking to domesticate material supply and to shield themselves against supply constraints and fluctuating prices of virgin materials. An important factor to consider is which chemistries are better suited for recycling or repurposing. From a material value perspective, LCO, NMC and NCA chemistries propose much stronger economic value propositions for recycling than LFP (see below).

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