Lithium-ion battery recycling: technologies, benefits and the challenges of a circular economy

In today’s energy landscape, lithium-ion batteries power electric vehicles, stationary storage systems, industrial devices and consumer electronics. In this context, battery recycling is no longer optional—it is a strategic requirement to ensure sustainability, supply-chain security and industrial resilience.

As a specialized manufacturer of integrated lithium solutions, we consider recycling a key element for building a truly circular and competitive battery supply chain. Below, we analyze current recycling technologies, structural limitations and future developments in a rapidly evolving sector.

Recent projections suggest that by 2030 the world will generate around 11 million tons of end-of-life lithium-ion batteries. This volume will continue to grow as electric mobility and energy-storage installations expand.

Yet today, the effective recycling rate is below 5%.
This imbalance generates three major issues:

1. Environmental Impact – Without adequate recycling processes, critical materials like lithium, cobalt and nickel risk ending up in landfills, releasing potentially harmful substances.
2. Economic Impact – Primary raw-material extraction is expensive and highly exposed to market volatility.
3. Strategic Impact – The European Union has identified industrial autonomy as a strategic priority: recovering critical materials reduces dependence on non-EU suppliers.

Lithium-ion batteries contain technologically valuable materials, including:

• Lithium
• Nickel
• Cobalt
• Copper
• Aluminum
• Graphite
• Manganese

Recovering these materials is essential to close the loop of the lithium value chain and support a competitive European industry.

The industry relies on three main approaches: pyrometallurgy, hydrometallurgy, and direct recycling.

1. Pyrometallurgy: the traditional method

Pyrometallurgy is the most established technique. Batteries are treated at very high temperatures, producing metallic alloys containing nickel, cobalt and copper.

Advantages

• Well-established and easily scalable
• High thermal stability and operational safety

Disadvantages

• Very high energy consumption
• Almost complete loss of lithium
• Significant pollutant emissions

Although widely used, pyrometallurgy is considered less sustainable than more advanced recycling solutions.

2. Hydrometallurgy: recovery efficiency above 95%

Hydrometallurgical processes use solvents and acids to dissolve materials and recover them with high purity.

Advantages

• Recovery of over 95% of valuable metals
• Lower emissions compared to pyrometallurgy
• Ability to recover lithium and manganese

Disadvantages

• Acidic waste streams requiring treatment
• Complex plants and high operating costs

Hydrometallurgy is currently the most promising technology for large-scale industrial facilities.

3. Direct recycling: the most innovative frontier

Direct recycling does not break down the materials. Instead, it restores the cathode while preserving its chemical structure.

Advantages

• Reduced environmental impact
• Low energy consumption
• Restoration of active-material performance

Disadvantages

• Requires highly homogeneous feedstock
• Processes are still scaling and not yet fully standardized

Direct recycling is expected to play a crucial role in future EV and BESS battery architectures.

Regardless of the chosen technology, the industrial recycling chain follows three key phases.

1. Pre-Treatment

• Controlled electrical discharge
• Pack and module disassembly
• Electrolyte removal
• Inerting of reactive materials

2. Material Separation

• Detachment of cathode material from the collector
• Separation of anode and cathode
• Purification of recovered powders

3. Regeneration

This stage includes processes such as:

• Sintering
• Hydrothermal treatments
• Electrochemical relithiation

Regeneration is essential to obtain active materials that can re-enter the production cycle.

1. Design for recycling

Future battery packs must be easier to disassemble, with more uniform materials, to speed up recovery and reduce costs.

2. Battery Identity Global Passport (BIGP)

The digital battery passport will include:

• Chemistry
• Usage history
• State of health
• Operational conditions

It will support more efficient sorting and may include voluntary functions like anti-theft for e-bike batteries.

3. Automation and Artificial Intelligence

AI and robotics will be fundamental for:

• Automated disassembly
• Operator-safety improvements
• Optimization of recycling flows

4. Solid-State battery recycling

Next-generation solid-state batteries will introduce new challenges due to different materials and electrolytes, requiring redesigned recycling processes.

5. Development of dedicated recycling facilities

In Italy, specialized plants are emerging, including the first national hub for lithium and alkaline battery recycling in Pollutri (Chieti), focused on recovering critical materials.

Industry–Institution–Research Collaboration

Coordinated standards and shared investments are crucial for accelerating the transition.

Clear Regulations and Targeted Incentives

For many operators, recycling lines are not yet economically viable—policy support is essential.

Technological Scalability

Hydrometallurgy and direct recycling must evolve from pilot solutions to robust industrial technologies.

Information Standardization

The BIGP will play a key role in harmonizing the supply chain and simplifying recycling operations.

Lithium-ion battery recycling is no longer optional—it is a strategic necessity.

For us at Archimede Energia, specialized in designing high-performance lithium systems that integrate easily into industrial applications, recycling represents a critical step for ensuring continuity, sustainability and safety across the European energy value chain.

Innovative technologies such as direct recycling and tools like the Battery Identity Global Passport will enable a more efficient, transparent and circular system.
A path that industry, manufacturers and institutions must take together to build a truly sustainable ecosystem.