Recycling Batteries from Europe’s “Urban Mines” and Securing Critical Raw Materials at Home

According to recent insights from the European Commission’s Joint Research Center (JRC), the EU sources 41% of its primary manganese from South Africa and a staggering 79% of processed lithium from Chile. When it comes to battery manufacturing, China dominates about 70% of the entire battery value chain, from raw material processing to assembly. This dependency exposes Europe to supply risks and potential bottlenecks.

The Promise of Circular Economy and Recycling

Extracting critical raw materials is resource-intensive and environmentally taxing. In response, multiple economies are intensifying their focus on metal recycling and circular economy initiatives. Countries like Japan and the US have enacted progressive legislation to boost recycling rates for electronics and batteries. Europe itself has been a pioneer in legislating battery life cycles, from raw material extraction through to recycling and reuse.

Despite these efforts, industrial recycling capacity remains dominated by China. The IEA’s Recycling of Critical Minerals report highlights that the world’s top 20 companies by battery pre-treatment and material recovery capacity are all Chinese, with the top three holding roughly 15% of pre-treatment and 20% of material recovery markets globally. China is expected to maintain over 75% of global material recovery capacity through 2030, compared to 10% in the US and just 5% in the EU.

Unlocking Europe’s Potential Through Urban Mining

This imbalance brings a huge opportunity for Europe in the form of “urban mining,” recovering critical raw materials from e-waste and spent batteries within urban environments. This route offers significant environmental benefits, as critical materials are often far more concentrated in used batteries than in natural ores.

The JRC estimates that by 2050, secondary cobalt supply recovered from recycled batteries could fulfill 42% of the EU’s demand. This is not just about reducing environmental impact, it’s a strategic move to keep valuable raw materials within the EU, boosting local industries and innovation.

The Case for Bringing Recycling “In-House”

A key challenge is that a significant share of the EU’s battery waste is currently recycled outside Europe, mainly due to cost advantages of recycling near primary raw material producers. However, repatriating this process by developing robust recycling infrastructure within the EU, would reduce reliance on external suppliers and foster a competitive, innovative recycling sector.

The EU Batteries Regulation sets ambitious targets, and to meet these goals, the JRC has proposed a harmonised scientific framework for waste battery collection and recycling across the EU. This methodology will ensure transparent monitoring, encourage cost-effective innovation, and support sustainable industry growth.

What This Means for Europe and Recyclus Group

At Recyclus Group, we believe this evolving landscape underscores the urgent need to invest in advanced recycling technologies and circular solutions. Through our pioneering work in battery recycling, Recyclus is actively contributing to Europe’s green transition, recovering valuable materials, reducing reliance on imports, and supporting the shift to a low-carbon economy.

By unlocking the potential of Europe’s urban mines, we can help secure critical raw materials, minimise environmental impact, and build a resilient supply chain for clean technologies.