Batteries contain materials such as lithium, nickel, cobalt, manganese, graphite, copper and lead, the extraction and improper disposal of which carry significant environmental and health dangers (Jacoby, 2019). Currently, not all minerals are recycled due to technology pathways and economic incentives. That is why efforts are underway to address various challenges, including logistical, technical, economic and regulatory challenges, and design batteries for recycling, with a goal of achieving flexibility, scalability and efficiency in recycling. Compared with lead batteries, the complexity of lithium-ion batteries and their various chemistries makes it difficult to establish one robust recycling process for all types and make a business case for recycling. Currently used recycling methods and their combination include using high temperature or aqueous solutions to extract metals, cathode components and other materials for reuse in new batteries or other industries. Innovation is critical here since these methods will need to be flexible and adaptable to future battery chemistries.

The increasing number of EVs could well aggravate environmental damage from mining and battery waste unless recycling programmes are expanded, and various challenges are quickly and properly addressed. Governments are increasingly mandating recycling, such as the Battery Regulation in the EU, and providing government funding to innovate and scale up recycling, including lowering recycling costs, increasing recovery rates, and improving the carbon and energy footprint. Sourcing of materials through recycling is, however, not expected until mid-to-late 2030s, and by 2030, a primary recycling source will be processed scrap, recalls and discarded products (IRENA, forthcoming).