Recycling helps recover valuable materials, cut waste, and support clean energy. With stricter sustainability rules, governments are pushing for greener solutions. EV companies are also focusing on battery recycling. This helps lower supply chain emissions and cut their carbon footprint.

Thus, battery recycling has become essential for a greener future. We have studied the Lithium-ion battery recycling report by the Chemical Abstracts Service aka CAS (a division of the American Chemical Society) and Deloitte. It provides insights into key growth drivers, emissions impact, and the current and future outlook of the market. Let’s dive in!

What’s Driving the EV Battery Recycling Market?

EV batteries have valuable metals, such as lithium, cobalt, and nickel. However, getting rid of them is difficult and this is where recycling comes in use. Thus, the rising need for these energy metals is the key driver for the EV battery recycling market.

This approach reduces waste, conserves resources, and supports a more sustainable supply chain. As demand for EVs grows, so does the need for efficient battery recycling to lessen reliance on mining.

Notably, strict environmental rules are also driving manufacturers to adopt greener practices. Advancements in recycling technology are helping recover more metal. This makes the process cheaper and better for businesses. On a global scale, many countries are promoting a circular economy.

                        Supply and demand gap for critical minerals

Asia-Pacific Leads in Battery Recycling

In 2023, Asia-Pacific led the battery recycling market. High EV adoption in China, Japan, and South Korea increased demand for recycling. The region produces many end-of-life batteries as a major EV and battery manufacturer.

Strong government support, incentives, and environmental awareness are driving growth. Investments in recycling technology and infrastructure further strengthen the region’s lead. This is evident from more patents than research papers.

Geographical distribution of publications in the field of lithium-ion battery (LIB) recycling

The Top Player: Brunp Recycling Technology

China’s Brunp Recycling Technology, a subsidiary of CATL, is a top player in battery recycling. The company focuses on four major areas of battery material development:

• Ultra-High Nickel: Increases nickel content while reducing cobalt to boost battery capacity.

• High Voltage: Raises the charging voltage limit while maintaining safety and performance.

• Intelligent Management: Uses digital tools and smart systems for efficient operations.

• Emerging Materials: Develop new materials for various applications, continuously improving energy density.

These advancements help improve battery performance, efficiency, and sustainability. Notably, Japan’s Sumitomo Metal Mining follows as another key company in this field.

• READ MORE: Top 5 Lithium Producers Powering the Battery Market in 2025 

Global Regulations Powering Battery Recycling

Governments are tightening laws to improve battery recycling. Policies like Extended Producer Responsibility (EPR) require manufacturers to handle waste management. EPR makes producers responsible for collecting and recycling their lithium-ion batteries. This encourages sustainable manufacturing and proper disposal.

New rules in the EU, U.S., and Asia are shaping the industry:

China’s Leadership

China introduced key recycling laws as early as 2016. In 2018, the Ministry of Industry and Information Technology (MIIT) set strict rules for battery handling, recycling traceability, and technical standards. The 2020 Solid Waste Pollution Law stopped waste imports and boosted recycling. Also, the Circular Economy Development Plan (2021-2025) prioritizes battery reuse. In 2024, MIIT suggested new standards for recycling waste batteries. They are now being reviewed.

EU Regulations

In 2023, the EU launched New Battery Regulations. These rules address the whole lifecycle of batteries, from design to end-of-life. By 2027, manufacturers must recover 50% of lithium from old batteries and 80% by 2031. Companies need to track their batteries’ carbon footprint and meet recycling content targets by 2025. Additionally, by 2027, a digital battery passport will improve transparency and traceability.

U.S. Policies

The Environmental Protection Agency (EPA) regulates lithium-ion battery (LIB) recycling under the Resource Conservation and Recovery Act (RCRA). In 2023, the U.S. issued federal guidelines clarifying how hazardous waste laws apply to LIBs. The EPA plans to introduce a dedicated LIB recycling policy by mid-2025.

India and South Korea are working on policies to support LIB recycling.

Making EVs Greener: Decarbonizing the Battery Supply Chains

The report has highlighted the most critical information on EVs. EVs have no tailpipe emissions. However, making their batteries does create a lot of carbon emissions.

• Lithium-ion battery production accounts for 40-60% of an EV’s total emissions. 

Top automakers are now focusing on sustainable sourcing and recycling. As EV demand rises, battery recycling will be crucial for cutting carbon footprints and securing raw materials. And this is why regulators and investors are also pushing for cleaner supply chains.

Slashing Emissions and Saving Resources

Recycling lithium-ion batteries is much better for the environment than mining new metals. A study from Stanford University, published in Nature Communications, found that recycling creates less than half the emissions of traditional mining. It also uses only one-fourth of the water and energy.

The benefits are even bigger when recycling scrap from manufacturing. Scrap-based recycling created just 19% of the emissions, used 12% of the water, and needed only 11% of the energy compared to mining. Using less energy also means fewer air pollutants. So, battery recycling is a cleaner and smarter choice.

• The study concluded that recycling reduces greenhouse gas emissions by 58–81% and cuts water use by 72–88%.

The CAS report also published a 2023 study by Fraunhofer IWKS that evaluated the life-cycle environmental impact of three major battery recycling methods- Pyrometallurgy, Hydrometallurgy, and Direct recycling. The two significant deductions are:

• Recycling 1 kg of lithium batteries can reduce carbon emissions by 2.7 to 4.6 kg CO₂ equivalent.
• Direct recycling is the most effective method for the environment.

      Life-cycle environmental impacts of different recycling routes of LIBs

Making Battery Recycling Profitable

Battery recycling has three phases: high-cost investment, break-even, and strong profits. Initially, recyclers invest heavily to set up facilities and meet regulations.

They can start making money by cutting costs, recovering valuable metals, and reducing waste. Costs depend on transport, labor, battery design, and recycling methods. Recyclers can stay profitable by automating tasks, lowering transport costs, and using advanced technology.

Batteries with valuable metals like cobalt and copper, such as NMC and NCA, offer quick returns. In contrast, LFP batteries provide better long-term benefits when reused before recycling.

Choosing the right recycling method—pyrometallurgy, hydrometallurgy, or direct recycling—can boost efficiency. Studies show recycling offers environmental benefits worth $3 to $11 per kWh. However, this also depends on carbon pricing and market trends.

                              Net recycling profit comparison

Subsequently, recyclers should focus on improving their processes. They also need to form partnerships to strengthen their business.

The Future of Battery Recycling: Turning Challenges into Opportunities

Battery recycling faces hurdles like high costs, complex processes, and inefficient collection. Various battery designs and hazardous materials add further challenges. New technology, digital tools, and teamwork in the industry are making recycling cheaper and easier.

Polaris Market Research reports the EV battery recycling market was $8.89 billion in 2023. It is set to grow from $11.09 billion in 2024 to $65.71 billion by 2032, with a 24.9% annual growth rate.

Digital Tools Improve Efficiency

Traditional recycling relies on slow, expensive, and unsafe manual processes. Digital tools are transforming this by tracking materials, automating sorting, and improving disassembly. These innovations enhance efficiency and help companies comply with strict regulations, reducing legal risks.

For example, digital twins optimize processes, blockchain ensures traceability and cloud platforms enable real-time tracking. Umicore uses AI and cloud solutions. CATL, on the other hand, uses blockchain to track materials.

Similarly, companies like Redwood Materials, BYD, and Toyota use AI to predict optimal recycling timelines.

The Power of Industry Collaboration

The disrupted supply chain remains a major challenge. In China, only 25% of retired EV batteries go through formal recycling channels. Companies are making batteries easier to recycle. They are also working together in the supply chain to solve this issue.

In October 2023, Stellantis and Orano teamed up to recycle EV batteries and factory scrap in Europe and North America. Such collaborations are driving a more sustainable and scalable battery recycling industry.

Similarly, last December Li-Cycle Holdings Corp. resumed its collaboration with Glencore International AG, (a subsidiary of Glencore plc). Both companies will evaluate the feasibility of building a new Hub facility in Portovesme, Italy that could potentially produce critical battery materials such as lithium, nickel, and cobalt from recycled battery content.

• FURTHER READING: Lithium’s Essential Role in EV Battery Chemistry and Global Supply Dynamics 

The post Are EVs Truly Green? How Battery Recycling is Powering a Cleaner Future appeared first on Carbon Credits.

Greenpeace is facing a $660 million lawsuit by Energy Transfer Partners. The verdict is more than a legal case; it could change the climate movement significantly. The lawsuit came from Greenpeace’s involvement in the protests against the Dakota Access Pipeline (DAPL). This project has been controversial for its environmental and social effects.

The talk about the verdict often centers on free speech. But its wider effects on climate activism and the fight against fossil fuels mustn’t be overlooked.

The Dakota Access Pipeline and Its Climate Impact

The Dakota Access Pipeline is 1,172 miles long. It has sparked many environmental protests since it was built. The pipeline transports crude oil from North Dakota to refineries in other parts of the country.

Environmentalists say this project worsens climate change. It helps with fossil fuel extraction and burning. The Standing Rock Sioux Tribe and other activists opposed the pipeline. They feared oil spills could contaminate water sources and harm ecosystems.

Fossil fuel projects like DAPL contribute significantly to global carbon emissions. The pipeline can transport 570,000 barrels of crude oil daily. When burned, this oil releases millions of metric tons of CO₂ into the air each year.

Greenpeace opposes these projects because of the need to shift from fossil fuels to renewable energy. However, this legal verdict against the organization raises concerns about the future of climate advocacy.

Greenpeace’s Role in Climate Advocacy

For decades, Greenpeace has led the fight for the environment. They challenge companies and governments to act more decisively against climate change. The organization has been key in raising awareness about deforestation, ocean conservation, and the risks of relying on fossil fuels.

In the case of the Dakota Access Pipeline, Greenpeace supported Indigenous-led protests and helped amplify concerns about the project’s long-term environmental consequences. Energy Transfer claimed that the organization defamed them and stirred up protests. However, Greenpeace says their actions aimed to hold fossil fuel companies accountable for climate damage.

Mads Christensen, Greenpeace International Executive Director, noted:

“We are witnessing a disastrous return to the reckless behaviour that fuelled the climate crisis, deepened environmental racism, and put fossil fuel profits over public health and a liveable planet. The previous Trump administration spent four years dismantling protections for clean air, water, and Indigenous sovereignty, and now along with its allies wants to finish the job by silencing protest. We will not back down. We will not be silenced.”

Legal Threats Against Climate Activists and Climate Movement

This lawsuit shows a trend. Fossil fuel companies are using legal action more often to fight against environmental opponents. Big companies often use lawsuits called Strategic Lawsuits Against Public Participation (SLAPPs) to stop activism. SLAPPs can cost environmental groups a lot of money. This makes it tough for them to keep working.

Greenpeace’s legal battles are not unique. In recent years, companies like Shell, TotalEnergies, and ENI have also pursued legal actions against Greenpeace and other environmental groups. These lawsuits worry people. This could affect climate activists’ fight against high-emission industries.

• RELATED: Will Big Oil Be Forced to Pay for Climate Damages

The ruling against Greenpeace could have a chilling effect on climate activism. Environmental groups might hold back from challenging big fossil fuel companies if they worry about expensive legal issues. This could slow down efforts to hold polluters accountable and push for stronger climate policies.

The case also raises questions about how fossil fuel companies may use legal systems to avoid scrutiny. Companies like Energy Transfer can shift the conversation from their carbon footprint to the activists. This way, they avoid addressing the environmental and climate concerns raised by these groups.

Fossil Fuel Expansion vs. Climate Goals

While global leaders urge cuts in greenhouse gas emissions, fossil fuel projects keep growing. The International Energy Agency (IEA) has warned that to keep global warming below 1.5°C, no new oil and gas projects should be approved. Yet, pipelines like DAPL show that people keep investing in fossil fuels. This focus delays the shift to cleaner energy options.

Greenpeace’s opposition to such projects aligns with the broader climate science consensus that urgent action is needed. However, this lawsuit shows how fossil fuel companies fight back. They shift the focus from environmental issues to legal battles.

The growth of fossil fuel industries, especially oil and gas, creates major issues for global climate goals. This is because they emit a lot of greenhouse gases (GHG).

In 2023, CO₂ emissions from fossil fuels hit a record 37.4 billion metric tons. This is a 1.1% rise from 2022. The chart shows the industry’s emissions in the U.S.

• Specifically, oil and gas operations are responsible for around 15% of total energy-related emissions globally, equating to approximately 5.1 billion metric tons of CO₂ equivalent annually.

Moreover, the oil refining industry also plays a big role in GHG emissions. They rose from 1.38 billion metric tons in 2000 to 1.59 billion metric tons in 2021. ​

Methane, a potent GHG, is also a major concern in the oil and gas sector. Oil and gas operations in the United States release more than 6 million metric tons of methane each year. This worsens climate change because methane traps heat much better than CO₂. 

Burning fossil fuels for electricity and heat is the biggest source of global GHG emissions. It makes up 34% of the total. The industrial sector contributes 24% of global GHG emissions, primarily from on-site fossil fuel combustion for energy.

These stats highlight the urgent need for renewable energy. Companies must also adopt strict emission cuts to meet global climate goals.

A Precedent for Future Climate Activism?

This legal case could set a dangerous precedent. If other fossil fuel companies sue environmental groups, activism might become too expensive to continue. This would weaken one of the most powerful forces advocating for climate action.

Despite the setback, Greenpeace has vowed to continue its fight. The organization has filed an anti-SLAPP lawsuit against Energy Transfer in a Dutch court. They want to recover damages and legal costs from this case. The outcome of these legal battles could shape the future of climate advocacy and corporate accountability.

The $660 million verdict against Greenpeace is not just about free speech—it’s about the future of climate activism. As fossil fuel companies expand their legal tactics to counteract opposition, environmental organizations face increasing challenges in their fight for a sustainable future.

• READ MORE: Tesla’s Avoided Emissions Are Up to 49% Overstated, A Study Claims

The post Greenpeace Faces $660 Million Verdict: A Turning Point for Climate Action? appeared first on Carbon Credits.

President Donald Trump has signed an executive order to ramp up U.S. production of critical minerals. The order uses emergency powers under the Defense Production Act to increase financing, streamline permits, and encourage domestic mining and processing of minerals vital for national security and economic growth. 

The goal is to cut down on dependence on foreign suppliers, especially China. China leads the global supply chain for key minerals. The order has raised worries about its effect on the environment and how it matches climate goals.

What Are The Key Aspects of the Executive Order?

• Defense Production Act for Critical Minerals

The executive order authorizes the use of the Defense Production Act (DPA) to provide financial support to U.S. mining and mineral processing projects. This includes loans and investments from the U.S. International Development Finance Corporation (DFC) and the Department of Defense. The goal is to speed up the production of key minerals. This includes lithium, cobalt, nickel, rare earth elements, and maybe coal.

• Faster Permitting for Mining Projects

Trump’s order directs federal agencies to speed up the permitting process for new mining and processing facilities. The Department of the Interior has been tasked with prioritizing critical mineral production on federal lands. The administration wants to cut red tape. This will help private companies invest more in domestic mineral production.

• Expanding the Scope of Critical Minerals

The order lets the National Energy Dominance Council add uranium, copper, potash, and gold to the list of critical minerals. Additionally, there is speculation that coal could be included. This can potentially lead to increased production of fossil fuels under the guise of national security.

Why Is the U.S. Expanding Mineral Production?

The U.S. gets 70% of its rare earth minerals from China. This makes the supply chain weak for important industries like defense, electronics, and renewable energy. China has also imposed export controls on key materials like gallium and germanium. This further increases the urgency for the U.S. to secure its own resources.

Critical minerals are key for military use, particularly antimony. They support missile systems, fighter jets, and advanced communications technology. By expanding domestic production, the U.S. aims to strengthen its defense capabilities and reduce the risk of supply chain disruptions.

Lastly, lithium, cobalt, and nickel are crucial for battery storage, electric vehicles (EVs), and renewable energy infrastructure. Boosting local production of these materials can speed up the clean energy shift and cut down on fossil fuel use.

Global Market Trends and U.S. Critical Mineral Production and Consumption

The global demand for critical minerals has been on the rise, driven by the transition to clean energy technologies. In 2023, lithium demand surged by 30%, while nickel, cobalt, graphite, and rare earth elements also saw significant increases. 

Investment in critical mineral mining grew by 10% in 2023; however, this was a slowdown compared to the 30% growth observed in 2022. This is partly due to declining prices putting pressure on producers.

The United States has significant mineral resources but remains heavily dependent on imports for many critical minerals. According to the U.S. Geological Survey’s 2024 Mineral Commodity Summaries, the U.S. was 100% import-dependent for 15 nonfuel mineral commodities and over 50% import-dependent for 49 such commodities. 

For instance, aluminum consumption in 2024 reached 4.3 million metric tons, underscoring the nation’s reliance on external sources. For other minerals, refer to the following table for US 2023 consumption and production per USGS report. 

Trump’s recent executive order targets several critical minerals, including:​

• Rare Earth Elements (REEs): Essential for electronics, defense systems, and renewable energy technologies.
• Lithium: Vital for battery production in electric vehicles and energy storage systems.​
• Nickel: Used in stainless steel and battery manufacturing.​
• Cobalt: Important for battery electrodes.
• Graphite: Used in batteries and fuel cells.

Economic, Environmental, and Climate Implications

The EO has a significant impact on mining companies. Shares of U.S. mining companies surged following the announcement. 

MP Materials, a rare earth miner, saw its stock rise by 4.6%, while coal producer Peabody Energy gained more than 2%. However, Australian and Chinese mining companies experienced stock declines, reflecting concerns over reduced demand for imported minerals. 

The decision also has the potential to spur international trade conflicts. China and other major mineral-exporting nations may view this policy shift as a direct threat to their economic interests. This could lead to trade tensions and potential retaliatory measures, further complicating global supply chains.

• RELATED: US-China Trade War: Can the US Beat China’s Critical Minerals Grip?

Environmental Concerns and Climate Impacts

Mining and processing critical minerals contribute about 8% of global carbon emissions. Copper production emits 4.6 tonnes of CO₂ per tonne, while nickel ranges between 12 and 78 tonnes per tonne. However, these emissions do not negate clean energy benefits—EVs still produce half the lifecycle emissions of gasoline cars. Using low-carbon electricity can further lower these emissions. ​

Coal’s potential inclusion as a critical mineral raises concerns. Fossil fuels from federal lands accounted for nearly 25% of U.S. CO₂ emissions over a decade. Expanding mining on public lands risks habitat destruction and toxic contamination, with 22,500 abandoned mine sites already leaking harmful chemicals.

Securing critical minerals is key for national security and clean energy. Yet, experts also stress the need for sustainable practices. This includes recycling, improved mining tech, and carbon-cutting ideas. For example, using CO₂ to weaken rocks could make mining carbon-negative.

The Biden administration used the Defense Production Act before. This was to boost the production of battery materials in the U.S. The goal is to cut emissions and support renewable energy. In contrast, Trump’s order may list coal and other fossil fuels as critical minerals. This could slow down efforts for net-zero emissions and hurt global climate leadership. 

Expanding fossil fuel extraction on federal lands may worsen climate change, undermining progress toward emission reduction targets. ​

Conclusion: A Double-Edged Sword?

Trump’s executive order to boost critical mineral production is a significant policy shift that aims to reduce dependence on foreign sources, enhance national security, and support key industries. However, the inclusion of coal and the potential rollback of environmental safeguards raises concerns about its impact on climate goals.

As the U.S. moves forward with this strategy, it must find a balance between securing essential minerals and ensuring sustainable, environmentally responsible development. The outcome of this policy will shape not only the country’s economic future but also its role in global efforts to combat climate change.

• MUST READ: Trump’s EPA Cancels $20 Billion in Climate Funding: What It Means for Clean Energy

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