New research from Edith Cowan University (ECU) underscores the critical role of lithium battery recycling in the transition to a sustainable energy future. The study advocates for leveraging used batteries as a secondary source of lithium, a strategy that not only mitigates environmental impact but also ensures access to this crucial resource, fostering a circular economy and long-term sustainability.
The global lithium-ion battery market is projected to grow at a compound annual growth rate of 13%, reaching $87.5 billion by 2027. Concurrently, lithium consumption is expected to surge from 390 kilotons in 2020 to approximately 1,600 kilotons by 2026. However, ECU PhD student Sadia Afrin notes that only around 20% of a lithium-ion battery’s capacity is utilized before it is deemed unfit for use in electric vehicles. This means that discarded batteries, often ending up in storage or landfills, retain nearly 80% of their lithium capacity.
The Australian Department of Industry, Science and Resources estimates that by 2035, Australia could generate 137,000 tonnes of lithium battery waste annually. Recycling emerges as the most viable solution for managing this waste. Asad Ali, the first author of the study, quotes government figures estimating that the recycling industry could be worth between $603 million and $3.1 billion annually in just over a decade.
“Through lithium battery recycling, you can access not only the remaining lithium, which is already purified to nearly 99%, but you can also retrieve the nickel and the cobalt from these batteries,” Ali explained. While the recycled lithium may not significantly impact the lithium extraction or downstream sectors, the recycling process offers substantial environmental benefits compared to mining.
Ali highlighted that recycling processes can significantly reduce land use, soil contamination, ecological footprint, water footprint, carbon footprint, and the release of harmful chemicals into the environment. This reduction in greenhouse gas emissions and waste minimization underscores the environmental advantages of lithium battery recycling.
Australia, holding one of the largest hard rock lithium reserves globally, stands to gain socio-economic benefits and environmental sustainability from lithium recovery. ECU lecturer and corresponding author Dr. Muhammad Azhar pointed out that the mining industry itself offers another source of retired and potentially end-of-life batteries as the electrification of the mining sector gains momentum.
Despite the clear benefits, challenges remain. Afrin noted that the rate of innovation significantly outstrips policy development, and the evolving chemical composition of batteries complicates the recycling process. She emphasized the need for investment in the right infrastructure to create a circular economy, adding that several Australian companies are exploring the best approaches to address these challenges.
This research not only highlights the immediate environmental benefits of lithium battery recycling but also sets the stage for a broader discussion on the future of resource management in the energy sector. As the demand for lithium-ion batteries continues to grow, the development of robust recycling infrastructure will be crucial in ensuring a sustainable and circular economy. The insights from this study could influence policy decisions, encourage investment in recycling technologies, and drive innovation in battery design to facilitate easier recycling processes. The energy sector must now focus on turning these findings into actionable strategies to harness the full potential of lithium battery recycling.