European Electric Vehicle Battery Recycling Remains Uneconomical, Finds Study
The PEM study at RWTH Aachen University has shed light on the challenges facing the profitable recycling of electric vehicle (EV) batteries in Europe. The main economic barriers, according to the research, revolve around high transportation costs and underutilized recycling capacity.
Transportation costs account for up to 70% of total recycling costs, primarily due to the distances batteries must travel for processing. Many chemical processing plants operate at less than 10% capacity because the volume of batteries returned for recycling is low. Additionally, the infrastructure requires significant investments of around €23 per tonne of input, and most recovered "black mass" (valuable battery material) is sold abroad, reflecting insufficient domestic demand within Europe.
To address these issues, the study proposes a decentralized recycling structure as a potential solution. This would involve establishing regional pre-treatment facilities closer to battery collection points and centralized chemical processing units. This approach would reduce transportation distances and costs, allowing for better scalability.
Other proposed solutions include increasing capacity utilization in recycling plants by improving battery collection volumes and building out the European recycling infrastructure. Additionally, enhancing coordination across the value chain (vehicle manufacturers, logistics providers, recyclers) could optimize processes covering collection, classification, transportation, storage, mechanical treatment, and chemical processing.
These measures aim to create a more cost-efficient and scalable recycling ecosystem in Europe that can reduce dependency on raw material imports and support the green transition.
The European regulatory context also supports these goals. The EU Batteries Regulation, effective from July 2025, sets ambitious recycling efficiency targets and harmonized methodologies for material recovery to ensure critical raw materials like lithium, cobalt, and nickel are efficiently reclaimed. This regulatory push will reinforce investments in advanced recycling technologies and infrastructure across Europe, strengthening the circular economy for EV batteries.
Despite the challenges, the current practices for EV battery recycling in Europe are not profitable, as confirmed by the study's author, Professor Achim Kampker. Most of the recovered black mass from EV batteries has to be sold abroad due to lack of European demand.
In summary, the PEM study highlights that the main economic barrier is the high cost of transporting batteries due to fragmented infrastructure and low throughput. The proposed solution is a decentralized, integrated recycling network coupled with capacity scale-up and regulatory support to make recycling profitable in Europe.
The study suggests that a decentralized, integrated recycling network could help reduce transportation distances and costs, leading to a more cost-efficient and scalable European recycling ecosystem, as currently, the high cost of transporting batteries contributes to unprofitability. To optimize processes and increase efficiency, enhanced coordination across the value chain, including vehicle manufacturers, logistics providers, and recyclers, is also proposed.
