A key component of EVs (electric vehicles) are the batteries used to store the energy required to drive the vehicle- predominantly, these come in the form of Lithium-ion batteries (LIBs). LIBs are found in many technological devices in use today, including mobile phones and computers, and when in an electric vehicle, they are not one single unit, but rather thousands of individual cells. The market for lithium-ion batteries is projected to grow substantially, from US$30 billion in 2017 to $100 billion in 2025[i]. According to the IEA, electric car sales reached a record high in 2021, with sales almost doubling when compared with 2020- reaching 6.6 million sales (a share of almost 9%). Estimates suggest there are now 16.5 million electric cars on the road globally[ii].
EV batteries are made from a combination of raw materials, including so-called ‘base’ metals such as aluminium, copper and iron, as well as more expensive ‘precious metals’ such as cobalt, nickel and manganese. Other key elements include graphite and, of course, lithium[iii]. The process of creating EV batteries themselves is both environmentally and socially troublesome:
“Extracting the raw materials, mainly lithium and cobalt, requires large quantities of energy and water. Moreover, the work takes place in mines where workers — including children as young as seven — often face unsafe conditions”[iv] In addition, the precious metal cobalt, which forms an important part of a battery’s electrode, sees around 70% of the element found in just one country: the Democratic Republic of Congo (DRC). “Around 90% of the DRC’s cobalt comes from its industrial mines (90,000 tonnes annually). But in a country where people earn, on average, less than $1,200 annually, the world’s demand for cobalt has attracted thousands of individuals and small businesses, called artisanal miners — and child labour and unsafe working practices are rife.”[v]
A family digging for cobalt, Source: ABC[vi]
To tackle the environmental cost of EV batteries, the European Commission recently published draft regulations requiring carbon footprint disclosures for EV batteries starting in 2024. “The proposed requirement covers the carbon dioxide emissions over the full life cycle of a battery, from production to disposal. A maximum carbon footprint would be set later.” These rules, if brought in, would also apply to non-EU manufacturers[vii].
With the current and projected increase in EV uptake, there is growing concern around both the safe disposal and alternative use cases for EV batteries which have reached the end of first life (EOFL for the purposes of this blog). An EV battery is generally viewed to have reached its EOFL once it falls below the ability to maintain 70-80 per cent of total usable capacity[viii]. As an EV car’s capacity is linked to its ‘range’ (the distance it can travel on a single charge), a significant decline in capacity is problematic for both manufacturer and consumer, hence the push to replace ailing batteries.
EV LIBs have a typical lifespan of about 1,500 to 2,000 charge/discharge cycles, or 15 to 20 years, depending on usage patterns[ix]. Most manufacturers also offer long warranties on EV batteries, which, as the RAC note, generally exceed the overall manufacturer warranty for the car (eight years or 100,000 miles is typical).[x] However, not all of these batteries reach EOFL- they are also susceptible to failure and damage, writing them off far sooner than their projected lifespan. In addition, it was recently reported that EV batteries are difficult to repair, seeing those involved in even minor collisions earmarked for replacement[xi].
Whereas more traditional alkaline car batteries can and often are recycled[xii], EV batteries are an entirely different matter. EV batteries are much larger and heavier than traditional batteries; the materials used are also hazardous to human health and can explode if disassembled incorrectly. Dr Paul Anderson from the University of Birmingham previously explained to the BBC how recycling levels remain worryingly low: "Currently, globally, it's very hard to get detailed figures for what percentage of lithium-ion batteries are recycled, but the value everyone quotes is about 5%, in some parts of the world it's considerably less."[xiii] He added, "In 10 to 15 years when there are large numbers coming to the end of their life, it's going to be very important that we have a recycling industry,"[xiv]. In fact, in the EU alone, it is anticipated that there will be more than 30 million electric cars on the road by 2030, by then many of the EV cars we see on the roads today and in coming years, alongside those involved in accidents or electrical failure, will have seen their batteries reach EOFL.
“These (EV) batteries contain materials that are potentially dangerous, but also valuable. Recycling is a difficult process that shreds the battery materials, then requires the materials to be separated chemically. It is less expensive to mine new battery materials than to recycle them.” -Globalspec.[xv]
There is some progress being made on recycling; for example, in the UK, the first industrial-scale LIB recycling plant is set to open in summer 2023. Recyclus hope their new plant in Wolverhampton, England will process up to 22,000 tonnes of Lithium-ion batteries per annum[xvi].
While EV battery recycling is presently underutilised and fraught with challenges, alternatives to reusing EOFL batteries are being explored and adopted. For example, in the Netherlands, the Johan Cruijff ArenA in Amsterdam went live in 2018 with its use of second-life Nissan Leaf EV batteries, which were used to store energy from on-site solar panels. At the time, Henk van Raan, director of innovation at the Johan Cruijff ArenA, said: “Thanks to this energy storage system, the stadium will be able to use its own sustainable energy more intelligently and, as Amsterdam Energy ArenA BV, it can trade in the batteries’ available storage capacity.” He added: “The ArenA is assured of a considerable amount of power, even during an outage. As a result, the stadium will contribute to a stable Dutch energy grid.
Similar projects have been undertaken throughout the world, for example, in 2021, Cranfield University, in partnership with Brill Power and AceOn, announced plans to design, build and install a smart, second-life battery system at Cranfield's DARTeC building, with this made from upcycled electric bus batteries[xvii]. The battery system would then be connected to solar PV arrays and an inverter to feed solar energy back to the local grid at the campus, thus allowing the university to store any unused energy.
Other use cases for EOFL EV batteries include backup power for data centres, which are notoriously energy-hungry and traditionally use diesel generators to supply backup power in the event of grid failure. These batteries are also well-suited to use in homes where solar panels have been fitted- allowing homeowners to store surplus energy and use it at a later point in time.
Of course, ultimately, the hope is that LIBs advance and the need to extract precious, finite materials becomes obsolete. It’s thought that solid-state EV batteries could offer an alternative here- they provide a reaction similar to lithium-ion technology and replace the liquid-based electrolyte with a solid one, and several manufacturers are seeking to harness this technology[xviii]. The benefits include lighter batteries which it’s hoped will also scale down to be smaller than LIBs, thus offering increased energy density at a smaller weight. We discussed some of the new Lithium Ion Phosphate batteries on show at this year’s CES event.
[i] Lithium-ion batteries need to be greener and more ethical (nature.com)
[ii] Electric Vehicles – Analysis - IEA
[iii] EV battery guide: what are electric car batteries made of? | RAC Drive
[iv] Lithium-ion batteries need to be greener and more ethical (nature.com)
[v] Ibid
[vi] The rush for cobalt in the Congo reveals the human cost of the world’s green energy future - ABC News
[vii] Europe, Japan can help ease rollout of EV battery rules: EU official - Nikkei Asia
[viii] A rapid capacity evaluation of retired electric vehicle battery modules using partial discharge test - ScienceDirect
[ix] Used EV batteries find second lives — in homes | GlobalSpec
[x] EV battery guide: what are electric car batteries made of? | RAC Drive
[xi] Scratched EV battery? Your insurer may have to junk the whole car | Reuters
[xii] Electric cars: What will happen to all the dead batteries? - BBC News
[xiv] Ibid
[xv] Used EV batteries find second lives — in homes | GlobalSpec
[xvi] “UK’s first” industrial-scale lithium-ion battery recycling plant to open (circularonline.co.uk)
[xvii] Second life batteries from electric buses (cranfield.ac.uk)
[xviii] IEEE Xplore Full-Text PDF:
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
