Lithium

Approximately 87% of lithium today is used in the manufacturing of batteries – particularly lithium-ion batteries – making focus on these batteries essential to understand overall lithium recycling dynamics.

Lithium recycling feedstock

Lithium recycling occurs using both pre- and post-consumer scrap. Demand for lithium has grown considerably in recent years, and combined with significant price volatility and questions around supply chain resilience, recycling is a growing focus for supply chain actors sourcing lithium.

Pre-consumer lithium scrap is sourced primarily in the course of lithium-ion battery (LIB) manufacturing for electric vehicles (EV.) Within this stream of pre-consumer feedstock, lithium can be found in cathode and anode scrap (such as trimmings or rejected electrode sheets) and rejected electrodes coated with lithium iron phosphate (LFP) or lithium nickel manganese cobalt (NMC). Defective separator materials, electrolyte wastes in the form of lithium salts, and whole cell assemblies rejected during manufacturing are additional types of pre-consumer lithium scrap from battery production.

Battery manufacturing scrap currently makes up the majority of pre-consumer lithium recycling feedstock and is the most highly valued. However, pre-consumer lithium scrap can also be sourced as lithium extraction residues from brine or ore refining processes, but this scrap is typically not adequately pure for battery-grade lithium. Manufacturing for other industries like glass and ceramics also create some pre-consumer scrap in the form of lithium aluminosilicates. However, these sources are only marginal inputs to lithium recycling overall currently and require complex, resource-intensive leaching processes, making them economically unattractive.

While pre-consumer scrap in the form of manufacturing byproducts is generally easier to process and contains higher-grade cathode material, post-consumer, end-of-life EV and storage LIB will become the main feedstocks available for lithium recycling in the medium- to long-term. Other post-consumer feedstocks – such as in ceramics and glass – are considered dissipative and non-viable for secondary use.

LIB have approximately a ten-year product lifespan, and the massive growth of the EV market in recent years means that approximately 5 million tons of end-of-life LIB will be available as post-consumer scrap by 2030. These batteries contain the most significant post-consumer feedstocks of lithium due to their size and weight. However, there are multiple types (such as NMC and LFP), and new technologies are developed regularly.

A second post-consumer lithium scrap source is large LIB found in battery energy storage systems (BESS), residential solar energy systems, and backup power. Li-Cycle, a leader in BESS recycling in Canada and the US, is an example of the innovation around this type of potential feedstock.

Additional post-consumer lithium scrap streams can be found in e-bike and e-scooter batteries. These batteries are often NMC of LFP batteries, but lack of standardisation across designs and size can complicate recycling processes. The push toward miniaturization is another consideration in recycling this scrap: while these batteries are considered to be medium-sized, approximately 130 scooter batteries must be recycled to collect enough post-consumer scrap for one EV battery. Recent partnerships – for example between Lime scooters and Redwood Materials, a Nevada-based recycler – speak to the push for greater circularity in battery supply chains.

Consumer electronics (e-waste) from smartphones, laptops, cameras, and other small appliances constitute a second input stream of post-consumer scrap. However, the batteries in these devices typically hold much smaller quantities of lithium scrap, and they are often embedded within complex designs, making disassembly more resource intensive. In informal economies, navigating the ESG risks associated with e-waste post-consumer feedstocks is a considerable challenge. Nonetheless, there are pioneering efforts underway to source LIB from e-waste, for example by Metastable Materials in India.

The recycling input rate (RIR) of lithium hovers around 3% of total lithium production as of 2023. While this indicates the relative immaturity of the lithium recycling sector, it also shows the high rate of efforts around LIB recycling in recent years: as of 2020, most research reported a RIR of 0%. Compared to more established recycling industries like that of aluminium or even other battery types – like lead-acid batteries – recycling of LIB is still an emerging field.