Global battery production capacity continues to rise. By 2025, electric vehicle sales are projected to account for over 25% of new car sales worldwide, relying on lithium-ion or other advanced batteries. The International Council on Clean Transportation estimates that by 2030, the number of retired EV batteries globally will reach 1.2 million, potentially increasing to 14 million by 2040. Facing this impending wave of battery retirements, safely and efficiently processing these used batteries has become a critical challenge for companies, universities, and public research institutions. Their shared goal is to reduce reliance on primary mineral resources and minimize environmental impact by recycling key raw materials like lithium, cobalt, and nickel.
Recently, the European Patent Office (EPO) and the International Energy Agency (IEA) conducted a comprehensive analysis of the battery recycling sector, jointly releasing a report titled "Battery Circularity: Innovation Trends for a Future Source of Critical Materials." The report analyzes patent applications across 24 technological areas based on global patent data from the past two decades, covering approximately 16,000 inventions and nearly 4,000 international patent families (IPFs). It highlights emerging trends, leading innovators, and the potential of battery recycling to reduce Europe's dependence on imported raw materials.
An industry insider noted that companies recognized the eventual scarcity of battery raw materials years ago, prompting early strategic investments in recycling technologies. Firms mastering battery recycling and regeneration technologies are likely to establish significant competitive advantages, particularly in direct regeneration techniques which, while technologically challenging, offer high returns.
Global innovation is accelerating: battery recycling technology growth far outpaces manufacturing. Battery recycling technologies are crucial for reuse and material recovery. Automakers typically focus on collection and logistics, while mining companies emphasize chemical conversion processes. Patent filings related to battery recycling began surging in 2017—the same year global EV sales first exceeded one million units annually. From 2017 to 2023, the compound annual growth rate for battery recycling technologies reached 42%, compared to 16% for overall battery manufacturing and approximately 2% across all technology fields. This rapid innovation in recycling concurrent with mass production is unusual historically, as recycling technologies typically emerge after a technology matures.
The insider explained that growing recognition of finite battery raw materials is driving countries to establish recycling loops to sustain new battery production. This has prompted proactive patent filings to avoid future technological barriers. Battery recycling has now evolved into a strategic "new battleground" for major industrial nations. The innovation wave coincides with explosive market growth: battery market size has increased over fivefold, from about 180 GWh in 2020 to 1,100 GWh in 2024, with projections reaching 3,500 GWh by 2030.
Fatih Birol, IEA Executive Director, stated that batteries are foundational to energy security and industrial competitiveness in the electrification era, whose full value depends on robust circular economies. Accelerating innovation in recycling can alleviate pressure on critical mineral supply chains, reduce environmental impacts, and create new economic opportunities.
China is consolidating control over both mineral refining and recycling endpoints. In 2023, Asia accounted for 63% of IPFs in battery recycling. A notable shift occurred around 2019: while Japanese and Korean firms like Toyota, LG, and Sumitomo Metal Mining previously led patent applications, Contemporary Amperex Technology Co.,Ltd. (CATL) subsidiary Brunp now tops the list, filing more than double the international patents of second-place Toyota between 2020 and 2023. Leveraging CATL's manufacturing scrap, Brunp has built integrated advantages from raw materials to technology and production capacity. Brunp's growth propelled China's share of IPFs in battery recycling from 5% in 2013 to 29% in 2023, signaling a shift in innovation leadership from Japan/Korea to China. During the same period, Japan and Korea maintained significant shares, Europe's share slightly declined from 22% to 21%, while contributions from Australia, Canada, and the US remained limited.
This trend underscores that with approximately 80% of global battery production located in China, even if Europe and the US build recycling facilities, they may need to import battery scrap from China for the foreseeable future. As the international battery recycling market expands, Chinese applicants are increasingly seeking overseas patent protection, reinforcing China's influence across the battery value chain.
The report notes China's dominance in mineral refining, controlling supply for 19 of 20 key refined minerals for energy. Since 2020, China has challenged traditional mining giants, achieving parity with the US in international patent share for battery metal refining. China's share of global patent applications in this sector rose from about 10% in the early 2000s to 70% between 2019 and 2023. Hydrometallurgy remains the primary method for recovering high-purity lithium, cobalt, and nickel, with related patents growing over 15-fold in two decades. China has established a distinct advantage in this technology, accounting for most of the 661 hydrometallurgy-related IPFs filed globally from 2020 to 2023.
Professor Yao Yonggang of Huazhong University of Science and Technology pointed out that hydrometallurgy faces long-term structural challenges, driving interest in direct material regeneration or electrode/battery-level recycling paths. These approaches aim to restore performance and preserve value with minimal structural degradation, reducing energy consumption, shortening processes, and improving resource efficiency. Regarding China's patent surge, he noted that patents reflect both technological competition and industry maturity, potentially driving standardization rather than creating closed systems. Chinese firms could leverage patent advantages to advance greener hydrometallurgical processes and industrialize direct regeneration technologies concurrently, while building barriers in smart disassembly and material repair to strengthen China's role in the global battery circular economy.
The industry faces a shortage of feedstock, not technology or capacity. Although Asia shows faster growth in battery recycling innovation, Europe is also expanding its efforts. Major European companies and research institutions, including top recycler Umicore, BASF, and the French Alternative Energies and Atomic Energy Commission, focus on converting recycled materials into new battery components, accounting for about 20% of innovation output. European expertise is evident in remote operation technologies (34% of IPFs), battery isolation and immobilization (30%), and pyrometallurgical pretreatment followed by hydrometallurgical extraction (26%), reflecting strengths in industrial robotics, automated disassembly, hazardous material handling, and fine chemicals.
For Europe, scaling and innovation are key to reducing costs, improving efficiency, and overcoming challenges like dispersed waste streams, diverse battery designs, and limited automation. Recent policies such as the Net-Zero Industry Act, Battery Passport, and Battery Regulation aim to promote investment and scale. However, the real challenge for Europe and globally is not insufficient recycling capacity but a lack of available spent batteries. Startups in Europe and the US, whether newly operational or in financing stages, face the practical problem of securing enough feedstock to sustain operations over the next 5-10 years.
Battery recycling is evolving from a production accessory to a new core focus of the industrial chain. As EPO President António Campinos stated, regions with strong industrial ecosystems, robust policy frameworks, and access to recyclable materials will be best positioned to lead the development of a circular battery economy as its importance in the global resource system grows.
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