Cirba Solutions highlights the importance of a robust critical minerals supply to meet the demands of battery production and recycling.
Critical minerals. Global dominance. Recycling. Batteries. Clean energy. Electric vehicles. Energy storage systems. These are all topics being discussed on global and national scales, as they are important to a country’s positioning in the global critical minerals race.
Whether a region is already mineral-rich or is looking to increase capacity, strategising on how to enhance supply chains is key in the critical minerals sector today. The question is, “How do we accomplish this in the short term, and what is the long-term growth strategy?”
The solution is to diversify sourcing and establish infrastructure now, incorporating it into the long-term strategy for recycling end-of-life batteries and manufacturing scrap.
While the answer is clear, the trajectory to get there is not a straight line. It is crucial to meet the expected demand for critical minerals, creating resilient and stable supply chains, gaining market control, and building a more competitive landscape.
Prioritising a rich critical minerals supply
This focus on critical minerals supply is a priority for OEMs, battery cell producers, and gigafactories, but is being heavily pushed by government agencies.
Through measures such as partnerships, tariffs, and tightening of levers on critical minerals, administrations are taking action to protect their assets now and increase access, thereby positioning themselves favourably in the future.
According to the International Energy Agency (IEA), a surge in new policies and facilities to support the recycling of critical minerals could reduce potential strains on supply.1
Increasing battery recycling capabilities
The demand for batteries is not slowing down, further solidifying the need to increase battery recycling and processing capacity. Based on current policy settings, the estimated rise in demand is expected to increase by more than four times by 2030 and by at least sevenfold by 2035.2
The capacity to recycle and process batteries is already there and continues to increase to account for batteries expected to reach end-of-life, making battery recycling an attractive solution.
In 2025, on a global scale, the battery recycling capacity exceeds 750 GWh, and by 2030, based on current project announcements, that capacity will increase to more than 1,500 GWh.3
To take advantage of the growth in this strategically vital sector, certified battery recyclers and those who are in the critical mineral refinement space must look at and adapt to:
- The market outlook for small-, medium-, and large-format batteries to better understand available feedstock.
- The journey of the critical minerals themselves and how this can be done domestically in a cost-effective, sustainable way.
- Best practices for delivering products and services to a growth sector.
- Building a new source (through the recycling of end-of-life and scrap materials) of critical metals domestically.
Increasing the global supply to refine lithium batteries
To align with these advancements (both in the short and long term), many regions are actively working to further increase their critical minerals supply for the processing and refining of lithium-ion batteries. It’s forecasted that the lithium-ion battery cell capacity is expected to grow by 3X between now and 2030.4
If countries are serious about increasing their capacity in their quest to achieve critical mineral independence, battery recycling must be at the forefront. In the long term, this is about building resilience, which in turn leads to fewer disruptions and vulnerabilities in supply chains.
Boosting domestic production, ramping up battery recycling, and forming strategic partnerships with both public and private sectors is critical to achieve success. The time to act is now.
References
- https://www.iea.org/reports/recycling-of-critical-minerals
- https://www.iea.org/reports/ev-battery-supply-chain-sustainability
- https://www.iea.org/data-and-statistics/charts/expected-battery-recycling-capacity-by-region-based-on-current-announcements-2023-2030
- https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/battery-2030-resilient-sustainable-and-circular
