A worker at Fortech company shows metals recycled from electric car batteries in Cartago, Costa ... More Rica,on February 20, 2023. - The Fortech company in Costa Rica recycles lithium batteries from telephones, computers, electric cars and other items to sell the resulting materials for the construction of new batteries. (Photo by Ezequiel BECERRA / AFP) (Photo by EZEQUIEL BECERRA/AFP via Getty Images)AFP via Getty Images The global clean energy transition is increasingly vulnerable to geopolitical tensions. On April 4th, Donald Trump announced plans to impose sweeping tariffs on most U.S. trading partners. Notably, critical minerals vital to technologies like electric vehicles and renewable energy were exempt. In response to Trump’s tariffs, China retaliated with tariffs of its own and new export restrictions on rare earth elements – underscoring how fragile and politicised critical mineral supply chains have become. The International Energy Agency has repeatedly warned that disruptions to critical mineral supplies could significantly slow electrification and the adoption of clean technologies. These risks are magnified by the fact that China strategically built its dominance in critical material supply chains, now controlling over half of global lithium, cobalt, and graphite processing and refining capacity. From wind turbines to batteries, the resources essential for the energy transition are now caught in the crosscurrents of geopolitics. Without urgent action to mitigate these vulnerabilities, progress toward decarbonisation could stall. Reduce, Reuse, Recycle: Embracing Circular Batteries Reducing dependencies and securing stable, sustainable, circular supply chains offers one of the most viable paths forward. Batteries, which are the heart of electric vehicles and a key enabler of balancing intermittent renewable energy, are a perfect example of how circularity can mitigate geopolitical risks and supply chain vulnerabilities. Despite their importance to the energy transition, batteries are heavily reliant on critical minerals such as cobalt, nickel, lithium, graphite, and manganese. To address such dependencies, applying the principles of the circular economy – reducing, reusing, and recycling – provide a practical pathway toward a more resilient and sustainable battery supply chain. Infographic illustration depicting the minerals found in an electric vehicle (EV) battery. The ... More average EV lithium-ion battery with a 65 kilowatt per hour capacity contains around 185 kilograms of minerals. Graphite is the largest component (28.1%) and is used for the anode. The cathode is composed of several metals with cobalt being the most expensive. Data from the European Federation for Transport and Environment based on the average EV battery in 2020getty Reducing Demand Through New Battery Chemistries The first step is to reduce Beyond reducing the need for virgin materials, improving efficiency within the manufacturing process is also critical, not only by increasing yield but also by ensuring that valuable “scrap” generated during production is captured and reintegrated into the manufacturing loop. This approach helps mitigate raw material constraints and complements end-of-life recycling efforts. In parallel, addressing what happens to batteries at the end of their life is equally important. With the EV and storage market taking off in recent years, the European end-of-life battery market is expected to be at 570 kilo tons a year by 2040, according to the consultancy PWC. This is where reusing and recycling become essential solutions.Rechargeable sodium-ion battery and salt farm for lithium-ion alternative concept. Sustainable ... More energy. Battery technology. Technician use soldering iron to solder metal and wire of sodium-ion battery.getty Reusing Batteries To Extend Their Lifetime Electric vehicle batteries go through frequent charging and discharging cycles, which gradually reduces their performance. An EV battery at 85% capacity means lower range and performance, but it may be entirely sufficient for stationary storage, which puts completely different demands on the battery. Giving batteries a “second life” can extend their lifespan by 15–20 years, helping to stabilise the power grid and store excess renewable energy. New technologies are tackling the challenges associated with reusing batteries, turning used or overproduced EV batteries into stationary storage systems with guaranteed lifetime and integrated management systems dedicated to stationary storage. However, not all batteries can or will be reused and repurposed. The state of health of some batteries may no longer be sufficient. Re-use may be particularly relevant for LFP batteries, which have a longer lifetime and contain fewer precious metals. For other lithium-ion batteries, it may be more lucrative to recycle them due to the value of their materials. But even after reuse, batteries will eventually reach the end of their life. And then recycling will be key.Stack of many used car batteries for recycling in a hazardous waste facility, used car batteries ... More backgroundgetty Closing The Circle Through Battery Recycling Through mechanical and chemical recycling, we can recover a battery’s valuable materials. Start-ups as well as incumbents are reporting very high recovery rates, successfully extracting metals and minerals from used batteries. With collection rates for EV batteries above 90% in China, South Korea, and Europe and recovery rates equally high, we may be able to fully close critical material cycles and reduce the need for virgin metals substantially. With distributed recycling centres the reduced transport demand will further reduce the environmental impact. Moreover, innovation is strong. Start-ups are inventing new technologies that not only reduce the environmental footprint of recycling, but also have the potential to lower its associated costs. In the US, more than $2 billion in equity and a $2 billion loan guarantee from the Department of Energy have supported efforts to produce 200 GWh of circular battery materials annually across two production sites in Nevada and South Carolina. In Europe, innovative recycling processes are being developed that reduce environmental impact, while achieving high recovery rates. Breakthroughs are being made through the use of hydrometallurgical processes to recycle graphite, while research from London's Imperial College suggests that small batteries made with recycled cathode active materials can perform better than those made with virgin materials from Chinese suppliers.Components of dead vehicle batteries in a factory. Photographer: SeongJoon Cho/Bloomberggetty A Strong Policy Push For Battery Recycling Through reducing, reusing, and recycling, circularity offers a solution to the geopolitical risks of highly concentrated and contested critical raw materials supply chains. It helps making countries independent from single suppliers, such as China, and reduces the risks of geopolitical conflict. But for a truly circular battery supply chain, policy must provide the right incentives. In both the EU and the US, policymakers have started to pave the way for circularity. In the US, the Inflation Reduction Act has, among others, accelerated battery recycling to reduce dependency on China. Its subsidies for recycled battery materials create strong incentives for circularity, though their future under a Trump administration is uncertain. Europe, meanwhile, leads on supportive regulation. The EU’s Battery Regulation sets minimum recovery and recycling targets, mandates recycled content in new batteries and is introducing a “battery passport” to improve transparency and enable second-life use. In addition, the European Commission is considering classifying the intermediate product from the mechanical recycling step, black mass, as hazardous waste which will prohibit it from being exported out of EU. These are good steps in the right direction. But if we are to break the dependencies and geopolitical risks associated with today’s critical raw material supply chains we must double-down on our efforts at building fully circular battery economies. This means more ambitious product requirements for secondary materials, loan guarantees to scale production, and more innovation funding. For our economy, the environment, and our security – it only makes sense.