Material Cycles for Traction Batteries

Agora Verkehrswende — together with the Oeko-Institute and with support from Stiftung GRS Batterien — has examined in this study how value chains and material cycles for lithium-ion batteries in the automotive sector are likely to evolve, and what business models for lithium-ion battery recycling in the EU could look like. Following the EU Battery Regulation adopted in 2023, vehicle manufacturers — as those placing traction batteries on the market — are legally obliged to take back their batteries and to meet recovery rates for lithium, cobalt, and nickel. From 2031, mandatory recycled content targets will also apply for the production of new batteries. To meet these obligations, manufacturers can either organise recycling themselves — potentially through their own recycling facilities — or appoint a producer responsibility organisation to manage it on their behalf.