Battery Recycling Can Slash EV Battery Cost By €3,000 In Europe, Says Report

Battery Recycling Can Slash EV Battery Cost By €3,000 In Europe, Says Report

A recent report by Deloitte hinted at new opportunities in slashing electric car battery costs by up to €3,000 by roping in EV battery recycling techniques. It suggested that the adoption of a redesigned approach, spanning the entire product lifecycle is expected to bring the cost down while revenue is expected to see an increase at various stages.

The study showed an increase in the production of batteries, crucial for advancing personal mobility in the energy transition that requires diverse raw materials not readily available within Europe. Germany and the European Union (EU) heavily rely on sourcing these materials from non-European nations, highlighting an urgent need for rectification. Historically, European companies have mitigated similar challenges by implementing closed-loop systems and recycling initiatives to reduce dependencies on others besides cost rationalization. However, novel solutions are imperative to tackle current battery challenges. 

The report emphasized on the urgency of meeting recycling targets (65%) by the end of 2025. Internationally, the European Commission introduced new Battery Regulations on July 28, 2023, impacting the EV sector.

Although battery recycling is a burgeoning industry, Europe’s current recycling capacity may soon face bottlenecks due to the proliferation of battery-powered electric vehicles venturing into the market. This strain is exacerbated by the construction of new battery production facilities in the EU, which initially generate substantial production waste. By 2030, a significant number of traction batteries will reach the end of their lifecycle, pushing the limits of existing recycling facilities under development. The multi-life model holds the potential to reduce car battery costs by up to €3,000, based on our analysis. By adopting a redesigned approach that spans the entire product lifecycle, costs are projected to decrease while revenue increases at various stages.

The production of batteries crucial for advancing personal mobility in the energy transition requires diverse raw materials not readily available within Europe. Germany and the EU heavily rely on sourcing these materials from non-European nations, highlighting an urgent need for rectification. Historically, European companies have mitigated similar challenges by implementing closed-loop systems and recycling initiatives to reduce dependencies and costs. However, novel solutions are imperative to tackle our current battery challenges, demanding immediate action.

Although battery recycling is a burgeoning industry, Europe’s current recycling capacity may soon face bottlenecks due to the proliferation of battery-powered electric vehicles entering the market. This strain is exacerbated by the construction of new battery production facilities in the EU, which initially generate substantial production waste. By 2030, a significant number of traction batteries will reach the end of their lifecycle, pushing the limits of existing recycling facilities under development.