Why battery recycling is essential for supply chain security

"Batteries are powering a significant shift in how we go about our daily lives, ranging from the devices we carry to electric vehicles and energy storage systems. Batteries play a critical role across key sectors from data center infrastructure, military, and microgrid applications to consumer electronics and more. But as demand surges, so does end-of-life material that needs to be managed."

"Beyond serving as compact energy sources, batteries also represent a domestic source of essential critical minerals. To fully realize their value, it is crucial to close the loop at end-of-life by recovering these minerals and strengthening the supply needed to support a rapidly expanding battery market. To responsibly manage battery materials at end-of-life, extended producer responsibility (EPR) for batteries becomes essential."

"In the U.S., battery EPR laws are being enacted at the state level, leaving battery producers, automotive original equipment manufacturers, and energy storage operators to navigate complex regulations, which vary by state. In states that have passed laws and those with active legislation, jobs will be created to manage these requirements, and we will see an increase in economic activity through the creation of closed-loop supply chains."

Batteries increasingly enable devices, electric vehicles, and energy storage across sectors including data centers, military, microgrids, and consumer electronics. Rising battery deployment produces growing volumes of end-of-life material that require responsible management. Batteries contain domestic sources of critical minerals that can be reclaimed to strengthen supply for the expanding market. Closing the loop at end-of-life through recovery and recycling is necessary to realize that value. State-level extended producer responsibility (EPR) laws in the U.S. create regulatory complexity but are expected to spur jobs and economic activity by enabling closed-loop supply chains. Recycling applies across chemistries, including lithium and alkaline batteries.

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