As the proportion of electric cars powered by lithium-ion batteries rises, so does the number of spent electric vehicle (EV) batteries reaching the end of life. To address these concerns, policymakers and industry leaders advocate for closed-loop recycling systems that maximize material recovery and minimize environmental impact. Without a mechanism to retain recyclable materials, the growth of the circular economy for lithium-ion battery materials will be impeded.
According to U.S. Environmental Protection Agency (EPA) regulations today, large-scale lithium-ion batteries should be managed under streamlined hazardous waste management standards for universal waste. Waste EV batteries are removed from cars at auto-shops or scrapyards before they are transferred to a universal waste handler to be sorted by chemistry, discharged, removed of electrolytes, and disassembled. Spent batteries not fully discharged may explode or give off toxic gas if disassembled, crushed, or exposed to fire or high temperatures. If batteries were directly disposed into landfills, chemicals from the battery may leach into soil and groundwater.
Subsequently, batteries slated for domestic recycling are transported to a destination facility for permitted treatment, storage, and disposal. However, this was not always the case. The export of battery waste was an economically viable option before critical materials such as cobalt, lithium, and graphite were considered economically and strategically important to the U.S.. Today, there is a significant public & private push for a domestic source of critical minerals for the growing U.S. energy and battery industry. The 2022 Inflation Reduction Act (IRA) which saw the disbursement of incentives for EV batteries produced using battery minerals sourced locally, increased the propensity of handlers sending it to local destination facilities. Handlers may also refurbish or remanufacture to return low-performing batteries for second-life applications.
At the destination facility, batteries are shredded into black mass (a fine powder containing anode and cathode materials such as lithium), and parts of LIBs such as copper and aluminum foils, and separators. Black mass can then be processed further into new battery materials.
When new raw materials such as lithium carbonate are recovered from the waste through a treatment process, recycling is complete.
There are a few reasons why we should be concerned about how EV batteries are recycled. Firstly, it closes the loop within the battery supply chain when critical metals such as lithium are recovered, keeping materials within domestic borders. Secondly, recycling EV batteries ensures they are properly disposed of and avoids chemicals leaching into the environment. Lastly, EV battery recycling makes the industry more sustainable, growing the sector and creating jobs.
Taking charge of our future is not only an imperative but a responsibility. NEU Battery Materials is a Lithium Iron Phosphate (LFP) battery recycler that can take EV batteries off your hands - reach out to learn more!
Sources:
United States Environmental Protection Agency. (2025). Lithium-Ion Battery Recycling Frequently Asked Questions. EPA.