From Policy to Practice: Why Battery Recycling Is Key to Europe’s EV Transition

May 15, 2025 | Circular Economy, Electric Vehicles

As the world accelerates towards electrification, Europe is re-evaluating how to secure its place in the global automotive race. The European Commission’s recent statement following its “Strategic Dialogue on the Future of the Automotive Industry” marks a decisive moment for the region’s EV ambitions. With sweeping changes proposed across emission targets, autonomous technology and the battery supply chain, one thing is clear: sustainability and competitiveness need to evolve in tandem.

For Recyclus Group, these changes represent more than just regulatory adjustments – they underscore an urgent need to accelerate the development of a circular, resilient battery ecosystem.

Three Pillars for the Future

1. Driving Autonomy Through Innovation

The Commission’s backing of autonomous driving technologies  – through industry alliances and streamlined regulations  – could redefine mobility across the continent. While autonomy is a long-term game, its rollout will inevitably depend on secure access to the critical materials and technologies that power these vehicles. Behind every electric, self-driving car is a complex battery system, and its end-of-life must be accounted for.

2. Flexibility in Emission Targets – Breathing Space or a Missed Opportunity?
By proposing a “banking and borrowing” mechanism for 2025 CO₂ targets, the Commission offers manufacturers a lifeline. Rather than being penalised for falling short annually, OEMs can average their performance over three years. While this may ease short-term pressure, it also raises questions: will this slow momentum for EV rollout or give European automakers the room to catch up?

Either way, it increases the volume of EVs expected to come to market in the coming years – and with them, the mounting responsibility to manage battery waste safely and sustainably.

3. Reshoring Battery Supply Chains – A Strategic Imperative
Perhaps the most consequential announcement lies in the push to bolster Europe’s battery supply chains. Currently, Chinese imports dominate the market due to their affordability and integrated production networks, but this dependence poses long-term risks – economic, geopolitical and environmental.

A Circular Response to a Linear Problem

Battery recycling is no longer optional, it’s essential. With CO₂ targets evolving and domestic supply chains under scrutiny, the need to recover, refine, and reuse finite critical materials like lithium, cobalt, and nickel has never been more pressing.

At Recyclus, we believe that end-of-life batteries are not the end of the road, they’re the beginning of a new cycle. By developing advanced recycling infrastructure in the UK and producing high-quality black mass, we’re helping to close the loop on battery use, minimise environmental impact, and strengthen efforts to build a more sustainable, resilient supply chain.

Looking Ahead

As the next stages of parliamentary and council review unfold, one thing remains clear: the choices made today will shape Europe’s automotive future for decades to come. Battery recycling sits at the crossroads of sustainability, industry resilience, and innovation.

Europe is gearing up for a pivotal transformation – and with the right investment, policy and vision, it can lead not just in producing cleaner vehicles, but in creating a cleaner lifecycle for the batteries that power them.