solar panels on a terrace

Powering the future sustainably - The Battery life cycle from mining to recycling

Batteries are essential to modern society, powering everything from smartphones to electric vehicles and renewable energy storage systems, supporting the shift to a low-carbon economy.

However, the battery life cycle—from mining critical raw materials to recycling end-of-life cells—presents significant environmental, social, and economic challenges. As the demand grows, understanding and improving each stage of the battery life cycle is essential in building a sustainable supply chain.

Understanding the entire battery life cycle is essential for developing resource-efficient, sustainable, and profitable investments and operations. As reliance on batteries grows for transportation and renewable energy storage, integrating sustainable practices into the design and operation of production facilities is imperative.

Image 1: Battery value chain
Image 1: Battery value chain

Mining: The Start of the Battery Life-Cycle

The journey of a battery begins with the extraction of essential minerals and metals like lithium, cobalt, nickel, manganese, phosphorus, iron, copper, and graphite. These materials are critical to the performance of lithium-ion batteries (LIBs) used in electric vehicles (EVs) and renewable energy storage. With battery demand projected to surge over the next decade, the mining industry faces enormous pressure to expand responsibly and sustainably.

To meet growing demand, investments in lithium alone will need to reach $94 billion by 2030 and double by 2040. However, this rapid expansion must prioritize resource efficiency, waste reduction, and environmental stewardship. The industry is moving toward more responsible practices, integrating principles of circularity by reducing environmental impact, recycling, and embracing sustainable extraction methods.

By 2030, CAPEX investments in lithium must reach $94 billion, increasing to $188 billion by 2040, to meet battery sector demand. 1 This trend applies to most materials used.

During this rapid growth, mining and metallurgical industries must follow the principles to minimise negative environmental, social, and economic impacts. Resource efficiency, waste minimisation, and embracing recycling and circular solutions are equally important.

Converting Raw Materials into Battery-Grade Chemicals

After extraction, battery minerals undergo chemical and metallurgical processing to obtain battery-grade chemicals.

Lithium: Lithium, the foundation of LIBs, is extracted from brine deposits or hard rock (spodumene, lepidolite). In brine extraction, lithium chloride is concentrated from saline deposits through evaporation and converted into lithium carbonate or hydroxide. Direct Leaching Extraction, a new method, promises increased efficiency and reduced environmental impact. Hard rock extraction involves roasting, leaching, purification and precipitation to produce either lithium hydroxide or carbonate.

Nickel, Cobalt and Manganese: Ni, Co, and Mn are used in high-energy-density cathode materials (NCM) for high-end, long-range EVs. Cobalt, Nickel and Manganese sulfates are produced from various sources through unit operations such as leaching, precipitation, crystallisation and electrowinning. Another variant is the NCA battery where aluminium is used instead of manganese.

Iron and Phosphate: LFP batteries are gaining popularity due to their lower cost compared to NCM batteries. This is because of the abundance of iron sources and phosphoric acid used to produce iron phosphate, a key LFP component. The lower cost structure has enabled price parity for entry-level, shorter range EVs and internal-combustion-engine (ICE) vehicles. LFP is also the preferred chemistry for battery energy storage systems due to its lower cost and stability (safety). LFMP (Lithium Iron Manganese Phosphate) chemistry is being developed to improve energy density, potentially bringing it closer to NCM levels.

Graphite: Graphite is used as the anode material in batteries. Natural graphite undergoes flotation and purification, while synthetic graphite is produced typically from petroleum coke through high-temperature graphitisation. Processes using bio-based carbon sources to produce battery-grade anode materials are also being actively developed.

Production of battery pre-materials

pCAM Production: Battery chemicals are used to create Precursor Cathode Active Materials - pCAM. For example in NCM precursor production process involves precise mixing of nickel, cobalt, and manganese or aluminium sulfates, followed by co-precipitation of a mixed metal hydroxide or carbonate. This highly controlled process is critical to the uniformity and performance of the final cathode active material (CAM).

Crafting the Final Cathode Active Material CAM: In CAM production, pCAM is blended with lithium and subjected to high-temperature calcination, known as lithiation, to form the correct crystal structure of the cathode material. This step is critical for maximising battery performance, including capacity and stability. The resulting CAM is then milled into fine powder for use in batteries.

batteries on a production line

Battery Manufacturing and battery applications

Battery manufacturing plants, or gigafactories, produce batteries on a large scale—typically > 1 GWh of annual capacity. These projects are highly complex and capital intensive, requiring multiple interrelated processes such as slurry preparation & mixing, electrode coating & drying, calendaring & cutting, cell assembly & electrolyte filling and formation & aging.

Specialised equipment, quality control, and clean room solutions are essential for maintaining low moisture and contamination levels, which are critical for producing high-quality batteries.

The produced cells are then assembled into modules and packs for various applications. The global battery demand in 2023 was dominated by transportation (82%) followed by energy storage systems (9%) and consumer electronics (9%).2

End-of-Life Recycling

When batteries reach the end of their life, recycling through hydro- and pyrometallurgical processes, preceded by mechanical separation, are crucial in reclaiming materials for reuse. Technologies are advancing rapidly, particularly for NCM batteries, while LFP battery recycling remains underdeveloped due to its lower value and feedstock challenges (due to later adoption compared to NCM). Second-life applications, where EV batteries are repurposed for less demanding roles, are also gaining traction.

Closing the Loop: Towards a Circular Battery Economy

To mitigate the environmental impact of batteries, the focus is on extending battery lifespan, maximising materials recycling, replacing toxic chemicals, and minimising energy use and waste generation. Key strategies in this transition include:

  • Alternative processing: The production of battery materials is resource-intensive, requiring large amounts of water and energy. Ongoing research focuses on optimising processes to reduce the amount of unwanted by-products and energy consumption.
  • Design for Recycling: Range is one limiting factor for the widespread adoption of EVs, which means that energy density has been prioritised over recyclability in battery design. However, as energy density improves, the emphasis may shift towards recyclability to facilitate easier disassembly and higher materials recovery.
  • Efficient Recycling Processes: Advancing technologies to recover more materials with less energy and fewer by-products.
  • Second-Life Applications: Repurposing and refurbishing of batteries before recycling extends their utility.
  • Tracing and sustainable Sourcing: Ensuring that battery materials are sourced responsibly, with attention to environmental and social concerns. Tracing concepts like battery passports track relevant battery sourcing information digitally.
  • Reducing use of Scarce Materials Toxic chemicals: Developing alternative materials reduces reliance on limited and harmful resources.
  • Government policies and industry standards play a vital role in driving the circular economy. Incentives for recycling, regulations on disposal, and support for research into new technologies are all essential.

 

Jervois is pleased to work with AFRY on a cobalt refinery Bankable Feasibility Study, which is fully funded by the U.S. Government. Once financed and constructed the facility will produce cobalt in sulfate form, suitable for use in America’s automotive industry, and will contribute to underpin its transition to high performance, safe electric vehicles.

Bryce Crocker, Chief Executive Officer at Jervois Global Limited

a phone charging

Turning Market Challenges to future opportunities

The current downturn in the battery sector, driven by slower-than-expected growth in the EV demand, subsequent overcapacity and declining battery cell and battery material prices has had a major impact on the industry during the last year. Many projects have been cancelled or delayed and companies are adapting by focusing on their core businesses, cost-efficiency and time to market.

This period of market adjustment presents an opportunity to refine processes, enhance recycling technologies, and explore alternative materials and product strategies. Technological advancements are rapidly improving battery efficiency, reducing costs, and enabling better recyclability.

Emerging markets such as the grid-scale energy storage and next-generation battery chemistries also present exciting growth opportunities. While short-term fluctuations in market conditions create uncertainty, the battery sector is well-positioned for long-term growth, as it plays a critical role in the global energy transition. According to various sources the CAGR is expected to be ~15 - 25 % until the end of 2030.

Written by

Sauli Pisilä - Director of Battery Sector, Process Industries Division

Sauli Pisilä

Director of Battery Sector, Process Industries Division

Contact Us

Please complete the form and send us your proposal. For career enquiries, please visit our Join us section.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Footnotes

  • 1. Benchmark Mineral Intelligence report a↩
  • 2. Bain & Company