The role of the circular economy for the electric vehicle battery market

The market for electric vehicle batteries is growing rapidly: experts expect demand to increase tenfold by 2030. At the same time, the EU is introducing new recycling regulations - and it is not just geopolitical upheavals that are complicating manufacturers' procurement of raw materials. In the "Automotive Industry Insights" white paper, we discuss how promising the circular economy is in this area in view of this mixed situation.

One thing is clear: the new EU Battery Regulation, part of the EU Green Deal and currently still being drafted, will in future extend the reuse and recycling of batteries at the end of their useful life and service life. The most important goal is to reduce harmful environmental impacts. Battery manufacturers therefore face various challenges - from complying with new EU collection quotas to purchasing limited metals.
 

Particularly relevant for the upcoming change: "It is not only the lack of standardisation of materials and design that limits the recycling and reuse of batteries. We also need renewable energies and greater process efficiency in battery manufacturing processes," says Goran Mazar, EMA and Germany Head of ESG and Automotive.

The circular economy is the conceptual way forward for car manufacturers. It is a "regenerative" model that preserves the value of the resources "circulating" within it. Resources include products, components and materials of all kinds in equal measure. Waste is avoided, pollution is reduced. And productivity increases.

But what does this mean for the implementation of new processes in the value chain? Arnoud Walrecht, Partner and Global Circular Economy Lead at KPMG in the Netherlands, says that in addition to working with battery producers, car manufacturers should also acquire companies that offer circular economy solutions.

Walrecht also emphasises: "Standardisation of battery types, circularity by design and end-of-life and end-of-use information will be key to the smooth implementation of new circular economy business models that support the adoption of electric vehicles."

Further details and application examples can be found here in the white paper.