30 August, 2024 Partner article

Embracing circularity in batteries: a critical step towards sustainability

IRENA

By Tarek Keskes, Energy Specialist, Energy Sector Management Assistance Program (ESMAP), The World Bank

The rapid adoption of batteries has spurred a surge in energy storage, essential for stabilising energy grids and enabling a clean energy transition. However, what happens when these batteries, which often contain potentially hazardous materials, reach the end of their lifecycle? We urgently need robust systems for the responsible and effective management of batteries once they are no longer useful. Phasing out disposal in landfills or waste dumps is crucial. Our success in creating a truly sustainable energy ecosystem will ultimately depend on our approach to recycling and reuse.

Battery recycling techniques vary depending on the type of battery and the materials they contain. Pyrometallurgical recycling, for example, involves smelting batteries at high temperatures to extract valuable metals such as nickel, cobalt, and copper. Hydrometallurgical recycling, on the other hand, shreds batteries and uses chemical processes to separate and recover metals more energy-efficiently. Mechanical recycling, often applied to lithium-ion batteries, disassembles batteries into components like cathodes, anodes, and electrolytes, which can be reused or further refined. Advanced techniques like direct recycling aim to recover and restore battery components with minimal processing, preserving the materials for reuse in new batteries. Ensuring a reliable supply of end-of-life batteries is key, which requires not only the collection and safe handling of used batteries but also the development of efficient logistics and reverse supply chains. Additionally, designing batteries with end-of-life considerations, such as modular designs and materials conducive to recycling, can significantly streamline the recycling process and extend the lifecycle of these technologies.

Battery reuse involves giving a second life to products or materials that have reached the end of their initial use but still hold value. They may no longer be suitable for their original application, but repurposed batteries can still function effectively in less demanding roles. For example, electric vehicle (EV) batteries that no longer meet performance requirements for powering vehicles can be used in stationary energy storage systems, such as residential solar power storage. This “second life” application extends the battery’s usefulness, reduces the need for new raw materials, and helps decrease waste. Reuse is a key aspect of the circular economy, promoting sustainability by maximising the value derived from existing resources before they are eventually recycled or disposed of.

Policy and regulatory frameworks are crucial in driving these changes. Effective policies should incentivise sustainable practices, establish clear standards, and support ongoing research into innovative solutions. Global cooperation is also essential for standardising practices and sharing best practices across borders.

The Energy Storage Partnership (ESP), hosted by the World Bank’s Energy Sector Management Assistance Program (ESMAP), is actively addressing these challenges. As a collaborative international platform focused on developing countries, ESP has a working group dedicated to battery recycling and reuse, promoting knowledge exchange and capacity building. It produced the report led by the World Economic Forum, “Closing the Loop on Energy Access in Africa”. Battery storage will play a key role in ensuring Africa’s progress toward full energy access by 2030, enabling both off-grid and on-grid electrification. However, as the demand for batteries increases, so does the stock of decommissioned batteries. The report offers important recommendations on policies, standards, business models, and regional collaborations.

Our commitment to advancing recycling practices and fostering a circular economy is fundamental to achieving a clean energy transition. We invite non-profit and governmental organisations to engage with ESP’s initiatives. For more information or to get involved, please contact the ESP Secretariat at esmap@worldbank.org. Your participation could significantly enhance our collective impact and drive sustainable solutions forward.