Researchers analyse challenges and trends in battery recycling
As electromobility becomes increasingly prevalent, the battery recycling industry faces a dual challenge. Not only does it have to significantly expand its capacities in the coming years but also address the growing complexity of the returned batteries. This is the conclusion of a new study by a research team from the University of Münster, the Fraunhofer Research Institution for Battery Cell Production FFB, as well as Volkswagen and Porsche Consulting. The study, published in the journal Nature Energy, analyses how different battery types, cell formats, system designs and return flows affect recycling processes and their economic viability.
The authors expect that recycling capacities will have to be considerably increased in future, particularly from 2030 onwards. This trend is being driven by the development of European gigafactories, the increasing number of battery-powered vehicles and regulatory requirements for the return and utilisation of batteries. While today's recycling streams mainly consist of the production scrap of conventional batteries made with nickel-manganese-cobalt and lithium-iron-phosphate, new battery designs, e.g. sodium-ion and solid-state batteries, will be entering the picture soon. This increasing diversity presents new requirements for analysis, disassembly and recycling processes. Future battery generations cannot be processed with today’s methods without making critical adjustments.
“In particular, close cooperation between automotive manufacturers, battery cell producers and recycling companies will play a decisive role in handling the increasing complexity and building a functioning circular economy for batteries in Europe,” explains Dr Niklas Kronemeyer, manager at Porsche Consulting and former doctoral student at the Institute of Business Chemistry at the University of Münster.
In addition to the technological challenges, the authors also analyse the economic viability of various recycling methods. From an economic standpoint, batteries with low material value like lithium-iron-phosphate batteries are difficult to recycle. In contrast, the revenues from the recovered raw materials in nickel and cobalt batteries can often cover the processing costs.
The research team identified the following seven key developments that will decide the competitiveness and economic viability of battery recycling:
Recycling-friendly battery designs: Standardised fastening systems, modular architectures and detachable adhesives facilitate the disassembly effort, reduce costs and improve safety.
Second-life battery usage: Reusing vehicle batteries in stationary storage or other applications can generate additional value creation and strengthen the circular economy.
More efficient reverse logistics: Standardised packaging and transport systems in combination with regional collection centres reduce logistics costs and improve the safe handling of used batteries.
Optimisation of recycling processes: Automation of disassembly reduces the workload by 50 to 80 percent. Specialisation in homogeneous material flows increases recovery rates and reduces processing costs.
Specialised value chains: Decoupling mechanical processing from downstream processing results in improved cost structures and more efficient processing structures.
Markets for secondary raw materials: The increasing shift to battery chemistries with lower metal value makes the development of downstream markets for secondary materials indispensable.
New business models: Closed loops, in-house recycling, second-life use and so-called “Producer Responsibility Organisations” (PROs) transform recycling from an independent service into a strategically integrated function with more stable economic viability and secured raw material flows.
Publication:
Niklas Kronemeyer, Hannah Mittag, Chris Gabrisch, Jens Leker, Simon Lux, Richard Schmuch, Fabian Duffner (2026): Challenges and Trends of Automotive Battery Recycling. Nature Energy; DOI: 10.1038/s41560-026-02092-9.