Researchers analyse challenges and trends in battery recycling
Against the background of increasing electromobility, the battery recycling industry faces a double challenge. It must not only significantly expand its capacities in the coming years but also deal with the fact that the complexity of the returning batteries is increasing considerably. 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 from Volkswagen and Porsche Consulting. The work, 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 a significant increase in recycling capacities will be required, particularly from 2030 onwards. Drivers include the development of European gigafactories, the increasing number of battery-electric vehicles, and regulatory requirements for the return and utilisation of batteries. While today's recycling streams mainly consist of production scrap with state-ot-the-art technologies, such as nickel-manganese-cobalt and lithium iron phosphate batteries, new battery designs as well as sodium-ion and solid-state batteries will be added in the future. This increasing diversity in particular presents new requirements for analysis, disassembly and recycling processes. Future battery generations cannot be processed with today's methods without further ado.
"In particular, close cooperation between automotive manufacturers, battery cell producers and recycling companies will be decisive in order to master the increasing complexity and to build a functioning circular economy for batteries in Europe," emphasises 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. In particular, batteries with low material value – for example, lithium iron phosphate batteries – are difficult to recycle economically. In contrast, the revenues from the recovered raw materials in nickel- and cobalt-containing batteries can often cover the process costs.
The research team identified seven central developments that will decide on the competitiveness and economic viability of battery recycling:
Design for Recycling: Standardised fastening systems, modular architectures and detachable adhesives facilitate the disassembly effort, reduce costs and improve safety.
Second-life use of batteries: The reuse of vehicle batteries in stationary storage or other applications can generate additional value creation and strengthen the circular economy.
More efficient take-back 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 process costs.
Specialised value chains: The decoupling of mechanical processing from downstream steps enables improved cost structures and more efficient process 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, inhouse recycling, second-life use and PROs transform recycling from an independent service into a strategically integrated function with more stable economic viability and secured raw material flows.
Original 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