The Concept of a Global Fund for EV Battery Recycling

The policy paper advocates for the establishment of a centralized global fund, designed to spur the expansion of recycling facilities on a global scale.

• The document underscores the fact that battery recycling is still in its nascent stages, grappling with technical hurdles in terms of cost reduction and enhancing material recovery capacity.
• With the projected rise in demand for minerals like Lithium, Cobalt, Nickel, and Graphite, it is predicted that the current supply from existing mines will be insufficient.

Gain further insights on Lithium-ion batteries in the attached article.

The Significance of Battery Recycling:

• The global shift towards EVs and the gradual elimination of internal combustion engine (ICE) vehicles, as seen in commitments by various countries including the EU's 2035 deadline, necessitates a surge in battery materials.
• Battery recycling presents a substantial business potential, as the escalating demand for materials cannot be met by existing mines.
• The EU has set a goal for a specific proportion of raw materials used by battery manufacturers to originate from recycling processes from 2025 onwards.

Economic Viability:

• The paper brings to light that current battery waste materials could yield a value of approximately $4,800-5,200 per tonne.
• Cathode materials in Li-ion batteries generally comprise lithium, aluminium, cobalt, manganese, and nickel, while graphite is used for the anode.
• In the Indian context, the volume of recycled and reused batteries is anticipated to surpass 20 gigawatt hours (GWh) by 2030, potentially reaching 128 GWh by 2030 in the EV sector alone.
• The recycling industry in India could accumulate a profit pool of $6 billion by 2040, with revenue surpassing $40 billion, marking a three-fold increase from 2030 estimates.

Governmental Initiatives:

• India has already implemented the Battery Waste Management Act , which assigns the onus of recycling or refurbishing batteries on producers.
• The Act stipulates targets for recoverable materials from batteries, aiming for 70% by FY25 and 90% by FY27.

In Conclusion:

• The G20 policy paper proposes the formation of a global fund to finance the augmentation of recycling capacities for EV batteries.
• The paper underlines the necessity of comprehensive battery recycling to cater to the growing demand for minerals, and underscores the economic viability and environmental advantages of recycling.
• The proposed fund would provide incentives for the expansion of recycling facilities, addressing the challenges of limited availability and concentrated mineral sources worldwide.