A circular economy for batteries to underpin renewable energy growth
By: Ellen Macarthur Foundation
Tags: Circulareconomy, Renewable Energy, Battery, Electric Vehicles, Energy

Designing out battery waste

Lithium-ion batteries are currently designed and sold in ways that mean they are difficult to repair, remanufacture, and recycle. As Chandan explains, they are “traditionally welded or glued together, making individual components difficult to replace. If one part fails, the whole battery is usually thrown away — often with more than 80% of its potential life left unused.”

Two important issues are raised here: first, batteries with most of their charging capacity remaining are being discarded rather than used; and second, the valuable materials that are used to make these batteries are being lost from the economy. With a shortage of lithium possible as soon as 2025, this could be a major barrier to the uptake of renewable energy.

Extending battery life

To ensure that batteries are used to their full potential and don’t become waste, collaboration across industries and between businesses and policymakers, as well as a rethinking of battery ownership, is needed.

In the EU, for example, the Waste Framework Directive currently defines reuse of an item as “any operation by which products or components that are not waste are used again for the same purpose for which they were conceived.” For batteries, this definition needs to be revisited; while automotive batteries lose 20–30% of their storage capacity after 8–10 years and can no longer be used in cars, they can be used, as Chandan notes, “as back-up batteries, for applications in data centres and elsewhere as this doesn’t require the same battery capacity.”

In addition to a review of the definitions of reuse, for it to happen in practice requires effective resale markets to be established or for the manufacturer to retain ownership of the batteries so that they can be passed between multiple users. Manufacturers retaining ownership of batteries is also a model that can increase the likelihood of repair and remanufacturing.

Aceleron’s lithium-ion battery has been designed to facilitate the easy replacement of components, extending the life of its batteries. Coupled with advanced analytics that can detect which components need servicing, this means the batteries are expected to function for up to 25 years with appropriate maintenance, more than double the lifespan of traditional lithium-ion batteries.

With similar motivations, car manufacturer Renault has established a rental model for the lithium-ion batteries in its electric cars so that they can be reused and remanufactured when customers return them. Jean-Philippe Hermine, Director of Strategy and Environmental Planning at Groupe Renault, commented:

“Batteries help us respond to an issue that’s existed for years in the energy sector: namely, that of storage. [Now] the goal is to help regenerate raw materials and reuse them to make new batteries. Over time, this would help lower their cost while securing supply, which will help minimise the carbon impact produced by mining. This is the model we’re working towards.”

Photo by Eric Weber on Unsplash

Electric cars like Renault’s will also play a key role in the broader transition to renewable energy by harnessing more of the potential of battery technology. A study by the European Climate Foundation together with representatives of the automotive and electromobility industry, battery makers, the energy sector, and French institutions and NGOs found that when an electric vehicle is parked and connected to the grid it is able to export energy from its battery. Called vehicle-to-grid systems, they can meet peaks in electricity demand, help manage overloads, and absorb surplus energy from renewable sources.

Developing this relationship between utilities and electric cars has the potential to accelerate the renewable energy transition in both sectors. For example, on the Portuguese island of Porto Santo, Hitachi ABB Power Grids and Renault have partnered to integrate renewable energy into the island’s grid by leveraging electric vehicle batteries. Vehicle-to-grid technology is complemented by an aggregation platform to create an energy ecosystem which will see Porto Santo become one of the world’s first smart fossil-fuel-free islands.

Recycling battery components

While new business models, cross-sector collaboration, and battery design can facilitate the reuse and remanufacturing of batteries, a further challenge is posed: recycling their materials. This is crucial to avoid the discharge of toxic metals and materials from discarded batteries into the environment, polluting soil and water.

A 2018 study by Google and the Ellen MacArthur Foundation — which assessed the circular economy solutions for both lead-acid and lithium-ion batteries — found that there are technical difficulties associated with recycling lithium-ion batteries and the cost to do so is currently significant. However, there is a big incentive to recover cobalt, and other materials, from batteries and large recycling centres have been established in Belgium and Canada for this purpose.

Earlier this year, chemical company Solvay and utilities business Veolia announced their partnership to create a circular economy consortium for critical metals used in lithium-ion batteries for electric cars. Veolia already operates a recycling plant in France, Euro-Dieuze Industrie, for electric vehicle batteries, based on an in-house hydrometallurgical process for selective extraction of metals. The partnership with Solvay — which brings expertise to optimise the extraction and purification of critical metals such as cobalt, nickel, and lithium — aims to allow the metals to be reused as raw materials to produce new batteries.

Ilham Kadri, CEO of Solvay, said of the project: “Solvay’s unique know-how combining Specialty Polymers, Composites, and Mining solutions, together with Veolia’s unique experience in waste management, is a fantastic opportunity to build a greener battery ecosystem.”

Veolia Chairman and CEO Antoine Frérot added: “The recycling of electric vehicle batteries and the management of the pollutants they contain are major ecological and industrial challenges. By partnering, Veolia and Solvay help develop the recycling value chain and the production of strategic raw materials for the production of new batteries.”