Sustainable Recycling of End-of-Life Electric Vehicle Batteries: EV Battery Recycling Frameworks in China and the USA

Abstract

The increasing adoption of electric vehicles (EVs) has led to a surge in end-of-life (EOL) lithium-ion batteries (LIBs), necessitating efficient recycling strategies to mitigate environmental risks and recover critical materials. This study compares the EV battery recycling frameworks in China and the United States, focusing on policy effectiveness, technological advancements, and material recovery efficiencies. China’s extended producer responsibility (EPR) policies and 14th Five-Year Plan mandate strict recycling targets, achieving a 40% battery recycling rate with 90% material recovery efficiency. Hydrometallurgical methods dominate, reducing energy consumption by 50% compared to virgin material extraction. The US, leveraging incentive-based mechanisms and private sector innovations, has a 35% recycling rate but a higher 95% resource recovery efficiency, mainly due to direct recycling and AI-based sorting technologies. Despite these advancements, challenges remain, including high recycling costs, inconsistent global regulations, and supply chain inefficiencies. To enhance sustainability, this study recommends harmonized international policies, investment in next-generation recycling technologies, and second-life battery applications. Emerging innovations, such as AI-driven sorting and direct cathode regeneration, could increase recovery efficiency by 20–30%, further reducing lifecycle costs. By integrating synergistic policies and advanced recycling infrastructures, China and the US can set a global precedent for sustainable EV battery management, driving the transition toward a circular economy. Future research should explore life cycle cost analysis and battery reuse strategies to optimize long-term sustainability.

1. Introduction

In today’s world, batteries are indispensable, powering everything from massive industrial machinery to tiny consumer electronics. Over the past few decades, the global battery market has experienced unprecedented growth, driven by technological advancements by the increasing adoption of electric vehicles (EVs), and the proliferation of consumer electronics. As shown in Figure 1 [1], the global battery market is poised for substantial growth from 0.3 terawatt-hours (TWh) in 2020 to 1.8 TWh in 2024. With the accelerating energy transition and the push towards decarbonization by countries and consumers, global battery demand could surge exponentially, potentially reaching nearly nine terawatt-hours by 2030, five times the levels seen in 2024. Therefore, for stakeholders hoping to take advantage of the opportunities provided by this quickly changing market, knowing the fundamental drivers of this demand and the ramification of diverse businesses is vital.

Figure 1. The expansion of batteries worldwide.

The global usage of batteries is extensive and varied, reflecting their importance across multiple aspects of modern life. Various types of batteries cater to specific applications, each offering distinct benefits. Batteries are essential for numerous technological advancements, from improving the convenience of consumer electronics to facilitating switching to electric vehicles.

According to Figure 2 [2], Lithium-ion (Li-ion) batteries dominate the market, accounting for approximately 75 to 80 percent of usage in various applications. Their high energy density, long life cycle, and efficiency account for this widespread use. The characteristics of (Li-ion) batteries make them ideal for (EVs), and a wide range of other applications.

Figure 2. Percentage usage of batteries in various fields.

In the transportation sector, batteries are revolutionizing the use of (EVs) in various forms. (Li-ion) batteries are critical in replacing traditional gasoline-powered vehicles with electric models. Figure 3 [3] shows that (Li-ion) batteries are primarily used in five crucial applications, with the largest share going to passenger electric vehicles. The demand for these batteries used in (EVs) has increased dramatically, from nearly 12 GWh in 2015 to an anticipated 1400 GWh by 2030. Overall, the need for (Li-ion) batteries has surged from 20 GWh in 2010 to 290 GWh in 2019, with forecasts suggesting it will reach 2000 GWh by 2030, accounting for roughly 10% of the global energy supply.

Figure 3. Global applications of lithium-ion batteries across various sectors.

The widespread adoption of Li-ion batteries is fueled by their high energy density, long life cycle, and decreasing costs, making them the preferred choice across various industries. These batteries are vital for the growth of EVs, portable electronics, and industrial applications. Li-ion batteries excel in these fields due to three key advantages: they provide more energy per unit weight, ensuring efficiency in portable and space-constrained applications; they have a long life cycle, allowing for repeated charging and discharging with minimal capacity loss, ensuring longevity and reliability; and they have a low self-discharge rate, making them ideal for devices requiring long standby times [4,5]. Understanding the diverse applications and increasing demand for Li-ion batteries is crucial for stakeholders navigating this evolving industry. Ongoing advancements in battery technology continue to improve performance, safety, and environmental impact, further accelerating their adoption.

Governments and regulatory organizations are implementing policies to control battery lifecycles more frequently, such as mandated recycling, financial incentives for recycling infrastructure, and safe disposal guidelines. As illustrated in Figure 4 [6], the percentage of EOL batteries, particularly from EVs, is projected to grow from 52% in 2020 to 94% by 2040, addressing environmental pollution concerns due to the rise in EOL batteries—technological advancements in recycling aim to improve efficiency and cost-effectiveness while fostering sustainable growth. Global efforts are essential to maximizing the benefits of Li-ion batteries while minimizing their environmental and economic impacts.

Figure 4. The global supply of EV batteries for recycling.

As shown in Figure 5, the number of electric vehicles (EVs) in use was substantial in 2023 and is expected to increase. China holds the largest share with 6.2 million EVs, while the U.K. has the lowest among the mentioned countries, with 370,000 EVs. Driven by goals to reduce fuel demand and lower pollution from car emissions, China and the US have implemented stringent rules and regulations to advance EVs development. The US encourages EV adoption through federal tax credits, state-level mandates, and emissions standards, with policies like the Clean Vehicle Tax Credit and California’s ZEV program. China’s 14th Five-Year Plan includes significant investments in charging infrastructure, NEV mandates, and incentives like purchase subsidies and tax exemptions. These initiatives aim to reduce carbon emissions, enhance transportation sustainability, and improve grid flexibility.

Figure 5. Leading countries in electric vehicle adoption.

This paper investigates the increasing need for energy storage in various applications, especially in EVs, highlighting the extensive application of Li-ion batteries because of their efficiency, long life cycle, and high energy density. Significant environmental issues arise from handling EOL waste and sourcing raw materials like cobalt and lithium.

This paper assesses the financial and technical obstacles to Li-ion battery recycling and explores recent technological advancements designed to enhance recycling profitability and efficiency. It also scrutinizes international laws and regulations governing the life cycle of Li-ion batteries used in EVs, such as mandatory recycling programs and financial incentives. The focus is on the measures adopted by the US and China to mitigate adverse environmental and economic impacts, instilling a sense of optimism about the future of battery recycling.

2. Literature Review

In managing EOL EV battery waste, the recent literature reveals a growing body of research addressing various aspects of waste recycling. EV batteries is a multi-step process that typically involves pre-processing (disassembly and materials separation) followed by one of three main metallurgical approaches. Key recycling methods include:

• Pyrometallurgical recycling (smelting): a high-temperature process where battery modules or cells are melted in a furnace. Pyrometallurgy can efficiently recover valuable metals like nickel, cobalt, and copper by incorporating them into an alloy or slag, but it burns off lighter components, notably lithium, electrolytes, plastics, and aluminum, which are lost or end up in waste slag.
• Hydrometallurgical recycling (chemical leaching): a wet chemical process that has become the state-of-the-art in battery recycling due to its high recovery efficiencies. After mechanical pre-processing (disassembling packs and shredding cells to produce a concentrated “black mass” rich in battery metals), hydrometallurgy uses aqueous chemistry to dissolve metals into solution via acid or base leaching. Subsequent purification and precipitation steps then selectively recover metals as salts or oxides (e.g., lithium carbonate, nickel, and cobalt sulfates). Modern hydrometallurgical processes can recover 90–99% of critical metals like cobalt, nickel, and lithium.
• Direct recycling (cathode-to-cathode): an emerging technique that seeks to recover the battery’s cathode material intact for direct re-use, rather than breaking it down into elemental constituents. In direct recycling, the electrode (especially the cathode coating, such as lithium nickel manganese cobalt oxide or lithium iron phosphate) is physically separated and treated to restore its performance—for example, by removing degradation products and re-lithiating the cathode to replenish lost lithium. This preserved cathode powder can potentially be reintroduced into new battery production without the intensive energy or chemical processes of smelting or leaching. The promise of direct recycling is a lower energy, lower emission route which avoids the multiple conversion steps of other methods, and thus can be the most environmentally benign.

However, direct recycling also faces several challenges, including the complexity of separating and identifying different cathode chemistries from mixed battery waste streams. It requires battery designs that allow for easier disassembly, and standardized cell formats to be more effective. In addition, the quality and performance of the recycled cathode material may vary depending on the degree of degradation, which can affect its reuse potential in high-performance applications. These technical and logistical limitations may restrict the scalability of this method.

Over the past five years, from 2019 to 2024, approximately 1440 papers have been published on EV battery waste recycling, highlighting this issue’s global relevance and importance. These papers encompass diverse topics, including technological advancements in recycling processes, strategies for improving recycling efficiency, and comprehensive reviews of international trends and future perspectives.

As shown in Figure 6, the distribution of research papers over time demonstrates the growing emphasis on EV battery waste management. However, it also highlights a substantial gap in understanding regulatory regimes. This gap is further underscored in Table 1, which contains fourteen significant articles that address laws and regulations related to EV batteries’ (EOL) management. A more concentrated study demonstrates the urgent need for thorough policy analysis and development. Such efforts could have a revolutionary impact, promoting sustainable EV battery waste management methods and aiding countries like the Middle East region, which is increasingly adopting electric vehicles.

Figure 6. Research articles published on EV battery waste recycling in different areas (2019–2024).

Table 1. Research articles published on EV battery EOL waste recycling policies and regulations (2019–2024).

S No.	Paper Title	Journal	Year of Publication
1	Life cycle assessment of secondary use and physical recycling of lithium-ion batteries retired from electric vehicles in China [1]	Waste Management	2024
2	A Comprehensive Review of Lithium-Ion Battery (LiB) Recycling Technologies and Industrial Market Trend Insights [2]	Recycling	2024
3	Study on the impact of government policies on power battery recycling under different recycling models [3]	Journal of Cleaner Production	2023
4	Recycling technologies, policies, prospects, and challenges for spent batteries [4]	i-Science	2023
5	A review on comprehensive recycling of spent power lithium-ion battery in China [5]	e-Transportation	2022
6	Challenges and Recent Developments in Supply and Value Chains of Electric Vehicle batteries: a Sustainability Perspective [6]	Conservation and Recycling	2022
7	Treatment of electric vehicle battery waste in China: A review of existing policies [7]	Journal of Environmental Engineering and Landscape Management	2021
8	Implication viability assessment of electric vehicles for different regions: An approach of life cycle assessment considering exergy analysis and battery degradation [8]	Energy Conversion and Management	2021
9	Recycling and environmental issues of lithium-ion batteries: Advances, challenges and opportunities [9]	Energy Storage Materials	2021
10	Recycling of mixed cathode lithium-ion batteries for electric vehicles: Current status and future outlook [10]	Carbon Energy	2020
11	Recycling lithium-ion Batteries from Electric Vehicles [11]	Nature	2019
12	Life Cycle Analysis of Lithium-Ion Batteries for Automotive Applications [12]	Batteries	2019

3. Research Methodology

3.1. Research Design

This study employs a comparative analysis of policy frameworks governing end-of-life (EOL) electric vehicle (EV) battery recycling in China and the United States. The primary objective is to extract valuable insights and best practices that could serve as guiding principles for other nations aiming to refine their own EOL battery management strategies in line with broader environmental, economic, and societal goals.

3.2. Data Collection

The investigation draws upon both primary and secondary sources. The primary sources encompass legal texts, national recycling mandates, and technical standards relevant to battery disposal and reuse in the selected countries. Secondary information was gathered from peer-reviewed literature, technical reviews, industrial reports, and prior policy analyses that document the practical outcomes of these regulations within the EV context.

3.3. Analytical Framework

A qualitative content analysis technique was applied to systematically review and contrast the essential features of the recycling policies in both nations. The examination concentrated on core elements such as legal structures, roles and duties of key stakeholders, compliance systems, and technical procedures for battery recovery and disposal.

3.4. Criteria for Analysis

The assessment of the regulatory schemes was based on four principal dimensions critical to effective EOL battery recycling:

• Regulatory scope: the extent to which each framework addresses the full battery lifecycle—from collection to recycling and disposal.
• Stakeholder participation: the degree of involvement and responsibility shared among producers, consumers, recyclers, and government agencies.
• Compliance mechanisms: the availability and rigor of systems that monitor and enforce adherence to the policies.
• Sustainability outcomes: the environmental and economic performance of the recycling practices encouraged by the respective frameworks.

3.5. Link to Objective and Research Questions

This methodology is directly aligned with the study’s aim of understanding how leading EV markets handle battery recycling at the policy level. By evaluating real-world approaches and results, the study seeks to propose informed strategies that can be adapted globally. Specifically, the research aims to answer the following questions:

• What are the most effective policy-driven practices in EOL battery recycling among leading nations?
• What types of legislative and regulatory instruments are in place in China and the USA?
• What operational procedures are being used in both countries for managing used EV batteries?

This structured approach allows for a well-rounded assessment of international experiences in EV battery recycling and supports the formulation of context-sensitive recommendations for improved regulatory implementation. A summary of the research process is depicted in Figure 7.

Figure 7. Research methodology flowchart.

4. EV Batteries Waste at End-of-Life Waste Recycling and Its Environmental Impacts

EV batteries have emerged as a cornerstone of the global shift toward cleaner and more sustainable transportation, offering a promising solution to reducing greenhouse gas emissions and dependence on fossil fuels [13]. As the adoption of electric vehicles continues to surge, the production and eventual disposal of EV batteries are becoming increasingly significant issues. While instrumental in the transition to electric mobility, these batteries present unique challenges at the end of their lifecycle, particularly in waste management and environmental stewardship [14,15].

The growing reliance on EV batteries has intensified concerns about effectively managing the waste they generate once they reach the end of their useful life. Unlike conventional vehicle batteries, EV batteries are complex, containing various valuable but challenging-to-recycle materials, such as lithium, cobalt, nickel, and graphite. These materials are critical to the batteries’ functioning and are also finite resources, making their recovery and recycling a priority for economic and environmental reasons. Therefore, the potential environmental impacts associated with EV battery waste include:

Composition of EV Battery Waste

EV battery waste comprises a complex mix of materials, including metals, plastics, and electrolytes. As shown in Figure 8, research indicates that a typical Li-ion EV battery primarily consists of 40% cathode materials, which include 10–20% nickel, 5–15% cobalt, 10–20% manganese, and 5–10% lithium. The anode materials, mainly graphite, account for 15% of the battery. The electrolyte, which includes lithium salts and solvents, makes up 10–15%, while separators (usually polyethylene or polypropylene) contribute another 5–10%. Additionally, 5–10% of the battery consists of aluminum and 10–20% of copper, both of which are used as current collectors, with 10–15% comprising steel and other structural materials. The remaining 5% consists of plastics and other components used for encasing and insulation. It is important to note that these compositions can vary depending on the battery type and manufacture.

Figure 8. Weight percentage (wt%) composition of EV battery waste by material type.

• Challenges in Recycling EV Battery Waste

The improper handling of EV battery waste contributes significantly to environmental hazards. Issues such as limited recycling infrastructure, technological barriers, and inconsistent regulations hinder efficient recycling. These challenges result in batteries ending up in landfills or being processed inefficiently, increasing pollution, and reducing resource recovery rates.

Furthermore, recycling (EV) battery waste presents several significant challenges that complicate the recovery of valuable materials and the safe disposal of hazardous components:

(a)

Technological and Economic Barriers

The recycling of (EV) batteries is technologically complex due to their intricate design and composition, including various metals like lithium, cobalt, nickel, manganese, plastics, and electrolytes. Separating and recovering these materials requires advanced recycling technologies that are still in development and have yet to become widely available or economically feasible. The high costs associated with establishing and operating specialized recycling plants capable of processing (EV) batteries can significantly deter investment in the necessary infrastructure.

(b)

Regulatory and Logistical Issues

There needs to be more consistent regulatory frameworks across different regions regarding the disposal and recycling of (EV) batteries. This inconsistency leads to variations in recycling practices and standards, complicating global efforts to manage (EV) battery waste effectively. Additionally, the logistics of collecting, transporting, and storing (EOL) batteries pose significant challenges, particularly in areas where dedicated recycling facilities are limited or nonexistent. These logistical hurdles add to the overall complexity and cost of (EV) battery recycling, further hindering progress in this critical area.

2.

Potential Environmental Impacts

The environmental impacts of (EV) battery waste are primarily categorized into resource depletion, pollution, and health and safety risks:

(a)

Resource Depletion

Producing (EV) batteries requires substantial raw materials such as lithium, cobalt, nickel, and graphite. These materials are critical for battery manufacturing and other high-tech industries, making their recovery from (EOL) batteries crucial. The extraction and processing of these materials can lead to resource depletion, particularly given their limited availability. Without effective recycling, the depletion of these resources could be exacerbated, potentially leading to scarcity, higher costs, and negative impacts on other industries that rely on these materials. According to various studies, the limited supply of these critical materials underscores the importance of developing efficient recycling processes to ensure their sustainable use.

(b)

Pollution

Improper disposal of electric vehicle (EV) batteries can lead to significant environmental pollution. These batteries contain hazardous materials such as heavy metals (e.g., cobalt, nickel, and manganese) and toxic electrolytes, which can leach into the soil and water if not managed properly. This contamination poses risks to ecosystems and human health, as these poisonous substances can accumulate in the environment and cause long-term damage. Additionally, the breakdown of battery components can release harmful substances into the air, soil, and water, leading to widespread pollution.

Furthermore, incinerating EV batteries, especially those containing hazardous materials, can result in air pollution. The incineration process can release toxic gases and particles, including dioxins and heavy metals, which harm human health and degrade air quality. These pollutants can have severe environmental and public health consequences, highlighting the importance of developing safe and effective recycling and disposal methods for EV batteries.

Another environmental concern is the presence of per- and polyfluoroalkyl substances (PFAS) in lithium-ion batteries. PFAS, often referred to as “forever chemicals” due to their persistence, are used in battery components to enhance safety and performance. However, improper disposal or recycling of these batteries can lead to PFAS contamination in air, soil, and water. Studies have detected PFAS pollution near battery manufacturing plants and in landfill leachates, indicating that these substances can enter the environment during both production and disposal processes. Given their resistance to degradation and potential health risks, the release of PFAS from EV batteries underscores the need for stringent waste management practices and the development of PFAS-free battery technologies.

5. Policies and Regulations in China and the USA

Effective reuse and recycling of end-of-life (EOL) electric vehicle (EV) batteries are critical components of sustainable battery lifecycle management. Both China and the United States have implemented comprehensive regulatory frameworks aimed at addressing the growing volume of battery waste. These policies emphasize material recovery, environmental protection, and circular economy practices. China’s 14th Five-Year Plan and related recycling mandates, as well as the USA’s incentive-based approaches and extended producer responsibility (EPR) programs, illustrate contrasting, yet complementary, strategies to manage EOL batteries. This section focuses specifically on the policy mechanisms, regulatory initiatives, and enforcement practices in these two leading markets that directly relate to the reuse and recycling of EV batteries [16,17].

5.1. China

China has rapidly emerged as the global leader in electric vehicle (EV) adoption, driven by supportive policies and infrastructure development. As illustrated in Figure 9, nearly 9 million new EVs were sold in China in 2023, representing 34% of the global EV market and marking a 37% increase from the previous year [18]. This surge in EV deployment, while commendable for decarbonization, is directly contributing to a growing volume of end-of-life (EOL) batteries, necessitating urgent and efficient recycling solutions.

Figure 9. The growth of EVs in China.

To address this challenge, China has implemented a series of regulatory measures targeting the reuse, recycling, and traceability of EV batteries. According to projections, battery waste is expected to reach nearly 360,000 metric tons by 2030, over three times the estimated level in 2025 Figure 10. This alarming trend has prompted the government to enforce new national standards effective from December 2023, requiring EV manufacturers and battery suppliers to adopt robust recycling and traceability mechanisms [19,20].

Figure 10. Battery waste in China.

China’s evolving framework now mandates closed-loop systems where used batteries are disassembled and processed to recover critical materials such as lithium, cobalt, and nickel. These recovered resources are then reintegrated into the production cycle, supporting a circular economy model. Policies also require digital tracking of battery lifecycles, enabling better monitoring of EOL batteries and improving compliance.

By embedding reuse and recycling strategies into its broader new energy and environmental policies, China demonstrates a proactive approach toward sustainable battery lifecycle management. These efforts not only support environmental protection and resource efficiency, but also position China as a regulatory leader in EV battery circularity.

5.1.1. Policies

China has revised its policies on energy storage batteries to support the NEV market and technological advancements. Early policies, like the 2016 subsidy notice [Caijian (2021) No. 466], boosted NEV adoption and battery tech. These are being replaced by newer frameworks, such as the 14th Five-Year Plan (2021–2025), which targets a 30% reduction in battery costs by 2025 and 100 GW of new storage capacity by 2030. The 2021 Guidance on New-Type Energy Storage plans large-scale energy storage development, and the 2023 Policies for Power Battery Industry Management [Caishui [2023] No. 13] focus on industry optimization and safety, as shown in Table 2. The 2024 Draft Regulations on the Lithium Battery Industry aim for sustainable development with stringent standards and significant R&D investment.

Table 2. Recycling methods with their advantages and disadvantages.

Old Policy/Plan	New Policy/Plan	Year of Effective
13th Five-Year Plan	14th Five-Year Plan	2021
Caijian (2021) No. 466	Caishui (2023) No. 13	2023

In Beijing and Shanghai, national policies are implemented with enhancements through local partnerships and projects. Beijing collaborates with recycling firms, while Shanghai has projects like the BYD recycling plant and partnerships with Volvo and CATL for closed-loop recycling. In Shenzhen and Guangdong, national guidelines are followed, with local initiatives like partnerships with BYD and major recycling facilities by Guangdong Brunp and CATL. These policies underscore China’s commitment to advancing energy storage capabilities aligned with technological progress and market needs. The following sections provide detailed insights into China’s evolving energy storage battery policies.

• China’s Five-Year Development Plans

China’s five-year development plans focus on successfully developing and deploying renewable energy technologies, including waste recycling and management, as shown in Table 3. The main goals of these plans are centered around promoting a cleaner, more efficient, and sustainable energy system. The 13th Five-Year Plan for Energy Development (2016–2020) aimed to reduce coal consumption, increase the share of renewable energy, improve energy efficiency, and promote technological innovation in the energy sector [21]. Building on this, the 14th Five-Year Plan for New Energy Storage Development Implementation Plan (2021–2025) outlines China’s strategy to enhance its energy storage capabilities, which is crucial for integrating renewable energy sources like solar and wind into the grid [22]. This plan emphasizes the development of advanced energy storage technologies, establishing a supportive regulatory framework, and creating robust infrastructure to ensure a stable and resilient energy supply system. These plans reflect China’s commitment to transitioning towards a low-carbon economy and addressing the challenges of climate change.

Table 3. Thirteenth and fourteenth five-year development plans primary goals related to energy storage and waste recycling.

Key Points	Description
Energy Storage Technologies	Emphasizes the development of advanced energy storage technologies, including batteries, to support the integration of renewable energy and enhance grid stability. This article highlights the need to improve the performance and reduce the costs of battery storage systems.
Support for Electric Vehicles (EVs)	Addresses the need for extensive electric vehicle charging infrastructure, which indirectly supports the development and utilization of battery technologies. This includes constructing a national network of fast-charging stations and decentralized charging piles.
Enhance Resource Recycling	Establish a comprehensive power battery recycling and utilization system to manage retired power batteries effectively by 2025.
Promote Circular Economy	Develop a resource recycling industrial system with an output value reaching RMB 5 trillion (approximately USD 773 billion) by 2025.
Increase Utilization of Recycled Materials	Produce 20 million tonnes of recycled non-ferrous metals and utilize 320 million tonnes of scrap steel annually by 2025.

• 13th Five-Year Plan for Energy Development (2016–2020) [Old]:

The “13th Five-Year Plan for Energy Development (2016–2020)” aimed to enhance energy efficiency, increase the use of non-fossil energy, and reduce carbon emissions, laying the groundwork for future advancements in the energy sector. The key objectives included improving energy efficiency, promoting energy-saving technologies, expanding renewable energy sources like wind, solar, and hydroelectric power, setting specific capacity targets, reducing carbon emissions through clean energy technologies, and fostering technological innovation in advanced coal, nuclear power, and energy storage [21], and these are summarized in Table 4. The plan succeeded in significantly boosting renewable energy capacity and efficiency.

Table 4. Some of the 13th Five Year Plan’s primary goals.

Article No.	Description
8	Enhance Energy Storage Capacity: Sets an ambitious target of achieving 30 GW of new energy storage capacity by 2025, with a long-term goal of 100 GW by 2030. This is crucial for balancing supply and demand fluctuations, especially with increased use of intermittent renewable energy sources like wind and solar power.
11	Support for Renewable Energy Integration: Focuses on enhancing the role of energy storage in balancing the grid and supporting the integration of intermittent renewable energy sources. This involves developing independent battery storage facilities to store excess energy generated during peak production periods and release it during high-demand periods.
14	Technological Advancements and Innovation: Emphasizes the importance of supporting research and development (R&D) in new energy storage technologies. The goal is to improve performance, reduce costs, and enhance the safety of energy storage systems. This includes promoting pilot projects and demonstrations of advanced energy storage systems.
17	Policy and Regulatory Support: Aims to develop market-oriented policies that encourage investment in energy storage technologies. Establishes pricing mechanisms and financial incentives to make energy storage projects economically viable and attractive to private investors.
18	Environmental and Economic Impact: Contributes to China’s carbon neutrality goals by 2060 by enhancing the role of clean energy storage solutions. This article addresses reducing reliance on fossil fuels, supporting renewable energy integration, lowering carbon emissions, and improving air quality. Additionally, it highlights the economic benefits, such as stimulating growth, creating jobs, and enhancing energy security.

14th Five-Year Plan for New Energy Storage Development Implementation Plan (2021–2025) [New]

The “14th Five-Year Plan for New Energy Storage Development Implementation Plan (2021–2025)” is a strategic initiative by the Chinese government to significantly advance the country’s energy storage capabilities. This plan is essential for integrating renewable energy sources and ensuring the stability of the national grid [23,24]. It builds upon the foundations of previous Five-Year Plans, setting more ambitious targets and focusing on technological innovations to achieve these goals.

Implementation Details

• Official Name: 14th Five-Year Plan for New Energy Storage Development Implementation Plan (2021–2025).
• Policy reference: Part of China’s broader 14th Five-Year Plan framework.
• Effective Date: 1 January 2021 to 31 December 2025.

Description of the policy

(a)

Energy Storage Technologies:

The plan focuses on various energy storage technologies, including lithium-ion, sodium-ion, lead–carbon, and redox flow batteries. Emphasis is placed on developing long-duration energy storage systems capable of providing backup power and stabilizing the grid during peak demand. This technological diversity ensures that multiple storage solutions can be created and optimized for different applications and conditions.

(b)

Infrastructure Development:

Expanding the infrastructure for energy storage systems is a critical plan component. This includes constructing large-scale storage facilities and integrating energy storage with existing power plants and renewable energy installations. By enhancing the infrastructure, the plan aims to optimize the operation and efficiency of the entire energy system, ensuring reliable and cost-effective energy delivery.

(c)

Research and Development (R&D):

Increased funding for R&D is allocated to develop advanced energy storage materials and technologies. The plan encourages collaboration with international partners to accelerate technological advancements and share best practices. This collaborative approach ensures that China remains at the forefront of energy storage innovation and can adopt the latest and most effective solutions.

(d)

Regulatory Framework:

Establishing clear regulatory guidelines for deploying and operating energy storage systems is essential for the plan’s success. These guidelines ensure compliance with safety and performance standards, protecting consumers and the environment. The regulatory framework provides the necessary oversight and governance to support the sustainable development of the energy storage sector.

(e)

Impact and Future Directions:

The plan is expected to drive substantial market growth in the energy storage sector, fostering innovation and attracting significant investment. By supporting R&D and pilot projects, the plan encourages technological breakthroughs that can reduce costs and improve the efficiency and safety of energy storage systems. Enhanced energy storage capabilities support integrating renewable energy and contributing to carbon emission reduction goals. Additionally, the development of the energy storage industry is anticipated to create new jobs, stimulate economic growth, and enhance energy security, positioning China as a global leader in clean energy technologies.

The comparative differences between the 13th and 14th Five Year Plans are given in Table 5.

Table 5. Comparing China’s 13th and 14th Five-Year Plans reveals a significant escalation in targets related to resource productivity, recycling, and the circular economy.

Metric	13th Five-Year Plan	14th Five-Year Plan
Resource Productivity Increase (%)	Increase by 15% from 2015 levels [25].	Increase by 20% compared to 2020 levels [26].
Recycled Non-Ferrous Metals Production (Million Tons)	Recycled non-ferrous metals reached approximately 14.5 million tons [25].	Achieve 20 million tons [26].
Resource Recycling Industry Output (RMB Trillion)	Recycling industry achieved an output value of RMB 2.8 trillion (approximately USD 406 billion) in 2020 [25].	Reach a value of RMB 5 trillion (approximately USD 773 billion) [26].
Battery Swapping Stations	Around 555 battery swapping stations were built in 2020 [27].	Plan to build over 1000 battery swapping stations by 2025 [28].

Policies Implemented from These Plans

The “Notice on the Promotion and Application of Financial Subsidy Policy for New Energy Vehicles (2022)” [Caijian (2021) No. 466] aimed to support the NEV industry’s growth by gradually reducing subsidies while maintaining high technical standards to encourage innovation, and was effective from 1 January 2022. Key provisions included a 30% subsidy reduction for 2022, stringent performance and technical standards, and support for battery technology advancements and infrastructure development. This policy contributed to market growth, technological advancements, and environmental benefits. Replacing this, the “Notice on Extending and Adjusting the Purchase Tax Exemption Policy for New Energy Vehicles (2023)” [Caishui [2023] No. 13], effective from 1 January 2024 to 31 December 2027, shifts the focus to tax exemptions, providing up to RMB 30,000 per vehicle for 2024–2025 and RMB 15,000 for 2026–2027. This new policy aims to promote NEV adoption, support technological advancements, and expand charging infrastructure, contributing to China’s carbon neutrality goals by reducing greenhouse gas emissions and improving air quality. The key feature points of Caijian (2021) No. 466 and Caishui [2023] No. 13 are given in Table 6.

Table 6. The criteria of each policy in China.

Caijian (2021) No. 466 [Old]	Caishui (2023) No. 13 [New]
■ Reducing subsidies by 30% in 2022. ■ The transport sector received a 20% reduction. ■ High technical standards. ■ Support development for charging stations. ■ Battery recycling regulations ■ Environmental impact.	■ Provide tax exemption to lower the upfront cost of NEV. ■ Invest in research and development on batteries and NEV technologies. ■ Support for battery swap models. ■ Supporting the growth of the NEV market ■ Reducing greenhouse gas emission. ■ NEV must perform at a high standard.

Notice on the Promotion and Application of Financial Subsidy Policy for New Energy Vehicles (NEVs) (2022) [OLD]

The “Notice on the Promotion and Application of Financial Subsidy Policy for New Energy Vehicles (2022)” [Caijian (2021) No. 466] aims to support the NEV industry’s growth by gradually reducing subsidies while maintaining high technical standards to encourage innovation [29]. Issued by the Ministry of Finance, MIIT, MOST, and NDRC, it became effective on 1 January 2022. Key provisions include a 30% subsidy reduction for 2022, with more minor cuts for public service vehicles and stringent performance and technical standards for eligibility. The policy promotes advancements in battery technology, supports infrastructure development for charging stations, and integrates renewable energy. It also emphasizes battery recycling and includes mechanisms for monitoring and evaluation. Public awareness campaigns and industry collaboration are encouraged to foster innovation. This policy has significantly contributed to market growth, technological advancements, and environmental benefits, helping to position China as a global leader in the NEV sector.

Notice on Extending and Adjusting the Purchase Tax Exemption Policy Foe New Energy Vehicles (2023) [NEW]

The “Notice on Extending and Adjusting the Purchase Tax Exemption Policy for New Energy Vehicles (2023)” [Caishui [2023] No. 13] is an updated policy aimed at promoting the growth and technological advancement of the new energy vehicle (NEV) market through tax exemptions, replacing direct subsidies with tax incentives [30]. This approach is intended to sustain market momentum while encouraging innovation in NEV technology and infrastructure.

Implementation Details

• Official Name: Notice on Extending and Adjusting the Purchase Tax Exemption Policy for New Energy Vehicles (2023).
• Policy reference: [Caishui [2023] No. 13].
• Effective Date: 1 January 2024 to 31 December 2027.

Description of the policy

(a)

Tax Exemptions:

There are two tax exemption plans, one from 2024 to 2025. NEV owners will receive a purchase tax exemption of up to RMB 30,000 per car, providing significant financial relief and encouraging NEV purchases [31]. This is projected to drive significant sales growth and aid the industry’s recovery following COVID-19. From 2026 to 2027, the second plan will cut the tax exemption to RMB 15,000 per car to gradually phase out tax breaks while providing continuous market support, preserving momentum while the industry transitions to a future with fewer government incentives.

(b)

Eligibility Criteria:

NEVs must meet specific performance standards, such as a minimum driving range of 200 km for pure electric vehicles and a battery energy density of at least 125 Wh/kg, to ensure that only high-performance vehicles receive tax breaks, encouraging manufacturers to produce technologically advanced and efficient vehicles [32]. Furthermore, vehicles must conform to tight battery performance and safety criteria, ensuring high levels of safety and efficiency in the NEV industry and boost consumer confidence and market stability. To ensure compliance, vehicles must undergo a rigorous certification procedure that validates their eligibility for tax breaks and protects policy integrity by ensuring that only compliant vehicles receive benefits.

(c)

Support for Battery Swap Models:

Vehicles that feature battery swap technology receive significant tax breaks. The goal is to promote the battery swap model to minimize range anxiety and increase convenience. This project encourages the use of novel battery technology and the development of related infrastructure, helping to advance the NEV industry.

(d)

Impact and Future Directions:

The strategy is intended to sustain the NEV market’s rapid growth by encouraging both domestic and foreign sales and maintaining market momentum through financial incentives that make NEVs more accessible and appealing to customers. By establishing rigorous technical criteria, the policy promotes breakthroughs in battery technology and overall vehicle performance, pushing manufacturers to develop and improve the quality and efficiency of their NEVs. In addition, the regulation improves the environment by lowering greenhouse gas emissions and increasing air quality, which is consistent with China’s overall environmental, and sustainability aims. It encourages using NEVs as part of the transition to greener transportation options, thereby mitigating the effects of climate change.

Lithium-Ion Battery Policies

China has implemented a national policy to promote the development, use, safety, and recycling of Li-ion batteries in EVs. This policy aims to ensure the sustainable growth of the EV industry while minimizing environmental impacts and enhancing technological advancements. Below is a critical national policy:

Policies for Power Battery Industry Management (2023):

The Policies for Power Battery Industry Management (2023) include comprehensive measures explicitly targeting the end-of-life management and recycling of lithium-ion (Li-ion) batteries used in electric vehicles (EVs) [33]. This policy ensures environmental safety and resource recovery through a structured regulatory framework, financial incentives, and extended producer responsibility (EPR). Below is an expanded and detailed description of each aspect of the recycling policy concerning EVs.

Implementation Details

• Regulatory Framework: MIIT’s Technical Standards for Li-ion Batteries.
• National Standard: GB/T 31574-2015
• Effective Date: 1 January 2023

Description of the policy

End-of-Life Battery Management and Recycling Policy

(a)

Regulatory Framework for Recycling:

The goal is to provide a comprehensive regulatory framework that oversees the recycling and disposal of (EOL) EV batteries while ensuring environmental safety and resource recovery. To do this, the policy imposes strict rules on all EV battery recycling phases, including collecting, transportation, storage, and dismantling. Standards like GB/T 31574-2015 [34] define safe, efficient, and environmentally friendly recycling procedures, including how to handle and process batteries to maximize material recovery. Furthermore, recycling facilities must obtain permission and certifications and follow government rules to ensure that their operations are responsible and sustainable. The End-of-Life Battery Management and Recycling Policy’s key metrics align with the targets set in the 14th Five-Year Plan, as tabulated in Table 7.

Table 7. End-of-Life Battery Management and Recycling Policy’s key metrics align with the targets set in the 14th Five-Year Plan.

Metric	Value (End of 2024)
Market Size	Approximately RMB 40 billion (approximately USD 5.8 billion) [35]
Decommissioned Batteries	Estimated at 52.29 GWh in 2022; projected to reach 134.49 GWh by 2025 [36]
Recycling Capacity	Approx. 337.5 GWh (75% of global battery recycling capacity) [37]
Recycling Enterprises	162,000 enterprises [38]
Circular Economy Leadership	Release of 2024 Edition of Battery Recycling Regulations [39]

(b)

Incentives for Recycling and Reuse:

The objective is to encourage recycling and reuse of battery materials through financial incentives and support. To implement this, the legislation provides subsidies and tax breaks to EV battery recycling companies, which help to offset recycling costs and increase participation. These financial incentives include financing for constructing or upgrading recycling facilities to improve efficiency and environmental compliance, making recycling infrastructure investments more economically viable for enterprises [35]. Furthermore, the policy supports R&D projects to improve recycling technology and increase material recovery efficiency.

(c)

Extended Producer Responsibility (EPR):

The goal is to hold EV producers responsible for their products’ whole lifecycle, including end-of-life (EOL) management. To accomplish this, manufacturers must provide take-back procedures for spent EV batteries, assuring proper collection, recycling, and responsible disposal. Companies such as BYD and NIO have set up collecting points and recycling programs to keep batteries out of landfill sites. Producers must also disclose their collection and recycling rates regularly, and authorities will monitor compliance with extended producer responsibility (EPR) requirements. This involves presenting annual reports specifying the number of batteries collected and recycled and the percentage of material recovered, ensuring transparency and accountability in recycling.

In addition to support for China’s national policies, different provinces have formulated and implemented their policies, as shown in Table 8.

Table 8. Some of the provincial policies in China.

Province	Policy
Beijing [40]	Adherence to National Policies: Beijing follows MIIT regulations for Li-ion battery recycling, ensuring environmental and safety standards., e.g., “Draft Regulations on the Lithium Battery Industry (2024)” and “Policies for Power Battery Industry Management (2023)”. Local Implementations: Beijing enhances national policies through public–private partnerships, collaborations with recycling firms, and pilot programs., e.g., initiatives involving government, private companies, and research institutions to manage used batteries, streamline processes, and test new recycling technologies.
Shanghai [41]	Adherence to National Policies: Shanghai follows MIIT regulations for Li-ion battery recycling, ensuring compliance with national environmental and safety standards., e.g., policies like the “Draft Regulations on the Lithium Battery Industry (2024)” and “Policies for Power Battery Industry Management (2023)” guide Shanghai’s recycling processes. Local Projects: Shanghai’s battery recycling efforts include the BYD recycling plant for efficient Li-ion battery recycling and material recovery, partnerships with Volvo Cars and CATL for closed-loop recycling, and sustainability initiatives using renewable energy and energy-efficient technologies.
Shenzhen [42]	Local Implementation of National Policies: Shenzhen follows MIIT guidelines for Li-ion battery recycling, ensuring strict environmental and safety standards. For example, enhanced local execution through partnerships and advanced recycling facilities to address the city’s rapid urbanization and high volume of EVs. Strategic Collaborations: Shenzhen partners with companies like BYD for efficient battery recycling, setting up collection points and advanced facilities., e.g., BYD and local authorities have citywide collection points and a recycling plant that uses automated systems to recover materials and dispose of hazardous components.
Guangdong Province [43]	Guangdong Brunp Recycling Technology: A CATL subsidiary with major facilities in Foshan and Changsha, Brunp uses advanced technology to recover valuable materials from used batteries., e.g., the Foshan facility processes thousands of tons annually, highlighting Guangdong’s commitment to sustainable recycling. CATL Investments: CATL has invested significantly in Guangdong to develop advanced battery recycling plants., e.g., a new lithium battery production and recycling base in Zhaoqing aims to boost capacity, support sustainable battery life cycles, and maximize material recovery with minimal environmental impact.

5.2. The United States of America

The increasing adoption of electric vehicles (EVs) in the United States has raised critical concerns regarding the management of end-of-life (EOL) lithium-ion (Li-ion) batteries. As shown in Figure 11, the number of EVs grew from 360,000 in 2020 to nearly 900,000 by 2023, with market share rising from under 2% in 2018 to over 6% in 2023 [44,45]. This rapid expansion, while beneficial for reducing emissions and boosting technological innovation, also contributes to a growing volume of battery waste.

Figure 11. The growth of EVs in the US.

To address this, the US has shifted policy efforts toward sustainable battery lifecycle management, emphasizing recycling, reuse, and safe disposal. Regulatory frameworks are being developed at both federal and state levels to ensure environmentally sound practices in battery collection, material recovery, and reuse. Programs are also promoting advanced recycling technologies to extract critical materials like lithium, cobalt, and nickel from spent batteries.

These initiatives aim to close the loop in the battery supply chain, reduce dependence on raw material imports, and enhance environmental performance. As the EV market continues to grow, these targeted actions are essential for building a sustainable and resilient recycling ecosystem within the broader EV policy landscape [46].

As the adoption of electric vehicles (EVs) in the United States accelerates, the issue of end-of-life (EOL) battery waste is becoming a significant environmental and logistical challenge. As shown in Figure 12, EV battery waste in 2022 was approximately 55.35 K tons, with projections indicating a sharp increase to over 360 K tons by 2030. This surge is primarily driven by the widespread adoption of EVs and the finite lifespan of lithium-ion (Li-ion) batteries, which typically require replacement after 8 to 10 years of use.

Figure 12. The battery waste in the US.

Effectively managing this growing volume of waste is essential to ensuring the sustainability of the EV industry. To that end, US policymakers are increasingly focused on developing comprehensive recycling systems that facilitate the recovery of valuable materials such as lithium, cobalt, and nickel. These efforts aim to reduce reliance on virgin material extraction, lower environmental impact, and strengthen the domestic supply chain.

Tackling this challenge requires a combination of policy support, technological innovation, and infrastructure development. Regulations and incentives are being introduced to promote battery recycling, safe disposal, and the establishment of advanced processing facilities. Simultaneously, investments in battery design improvements—such as longer lifespan and enhanced recyclability—are being pursued to support a more circular economy for EV batteries [47,48].

5.2.1. Policies

The United States has implemented policies to advance vehicle technologies, enhance energy efficiency, and ensure responsible battery recycling. The Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, established in 2007, provides loans to automotive manufacturers for developing fuel-efficient technologies. Expanded under the Bipartisan Infrastructure Law of 2021 [49], it now supports advanced battery technologies and the entire supply chain, aiming to create jobs, stimulate growth, and reduce foreign dependency. The Federal Energy Management Program (FEMP) was revitalized under Executive Order 14008 and the Infrastructure Investment and Jobs Act of 2021, as shown in Table 9. These initiatives enhance energy resilience and reduce greenhouse gas emissions in federal facilities by deploying advanced battery storage systems. FEMP provides technical assistance, funding, and guidance to support the US government’s sustainability and climate goals [50].

Table 9. Comparison of old and new policies in the US.

Public Law 110-140 [Old]	Public Law 117-58 [New]	Public Law 95-619 and 109-58 [Old]	Executive Order 14008 and Public Law 117-58 [New]
■ The program targeted light-duty vehicles. ■ Provides direct loans to automotive and component manufacturers. ■ Focuses on increasing fuel efficiency and reducing emissions. ■ Targets the development of vehicles that meet specific fuel economy and emissions standards. ■ Supports manufacturing facilities to produce advanced technology vehicles and components. ■ Creating high-paying jobs in the auto industry.	■ Broader support for advanced battery technologies. ■ Expands funding for EV infrastructure, including charging stations. ■ Aims to reduce carbon emissions and support the transition to electric vehicles. ■ Reduce reliance on foreign supply chains. ■ Achieving a net-zero emissions economy by 2050. ■ EVs constitute half of all new light-duty vehicle sales by 2030.	■ Aim to improve energy efficiency and reduce energy consumption within federal agencies. ■ Reduce greenhouse gas emissions. ■ Ensure energy resilience in federal operations. ■ Optimizing building performance. ■ Enhancing lighting and HVAC systems. ■ Implementing renewable energy projects.	■ Focus on battery storage projects. ■ Enhance energy resilience. ■ Assessing the feasibility of battery storage systems. ■ Manage peak energy demand and reduce electricity costs. ■ The Infrastructure Investment and Jobs Act allocates substantial federal funding for infrastructure projects. ■ Executive Order 14008 directs agencies to integrate climate priorities into their operations and investments.

Furthermore, several state regulations ensure (Li-ion) batteries’ safe handling, recycling, and disposal as given in Table 10. In California, the DTSC regulations under Title 22, Division 4.5 establish guidelines for collecting, storing, and recycling hazardous waste batteries, promoting material recovery and a circular economy. New York’s Environmental Conservation Law, Article 27, Title 18, requires manufacturers to implement recycling programs and provide convenient consumer options, including mandatory retailer participation and public education campaigns. Washington State’s RCW Chapter 70A.500 legislation supports effective battery recycling and sustainability, with the E-Cycle Washington program offering numerous drop-off locations for electronic waste, ensuring safe management and material recovery.

Table 10. Some of the provincial policies in the US.

Metrix	Economic Data
California	■ Policy Reference: California Code of Regulations (CCR), Title 22, Division 4.5 [51]. ■ Collection and Storage (Universal Waste Regulations): A store sets up a drop-off point, stores batteries properly, and sends them to a recycling facility on time. ■ Recycling (Facility Standards): A facility uses advanced technology to dismantle and process batteries, recovers valuable materials, and submits regular compliance reports to the DTSC. ■ Compliance (Safety Standards): A warehouse labels batteries correctly, stores them in secure containers, and ensures staff are trained in handling and emergency response. ■ Compliance (Environmental Standards): A recycling plant uses filtration systems to neutralize emissions and properly disposes of hazardous waste by regulations. ■ Implementation and Impact: The Responsible Battery Recycling Act of 2022 (AB 2440) requires producers to establish stewardship programs for battery collection and recycling, ensuring compliance and sustainability. This Act holds manufacturers accountable for end-of-life management, promoting higher recycling rates and environmental protection.
New York	■ Policy Reference: New York Environmental Conservation Law, Article 27, Title 18 [52]. ■ Recycling Programs: Submit plans within 90 days. Retailers must accept used batteries, provide collection boxes, and post signs about the recycling program. For example, posting signs and accepting used batteries for recycling. ■ Public Awareness: Manufacturers submit annual reports to the DEC detailing batteries collected, recycled, and associated costs to track campaign effectiveness. ■ Implementation and Impact: The Responsible Battery Recycling Act of 2022 (AB 2440) builds on these regulations, detailing manufacturer responsibilities and enhancing recycling infrastructure, ensuring compliance and continuous improvement in recycling practices.
Washington	■ Policy Reference: Revised Code of Washington (RCW) Chapter 70A.500 [53]. ■ Manufacturer Responsibilities: Panasonic might establish collection points in retail stores and service centers where consumers can drop off used batteries, which are then transported to manufacturer-funded recycling facilities. ■ Compliance: Manufacturers must submit detailed plans to the Department of Ecology before launching their recycling programs, demonstrating their methods for collecting, transporting, and recycling batteries. ■ Programs (E-Cycle Washington): Consumers can drop off used batteries at Best Buy or Staples. The program ensures safe management and recycling of hazardous materials at approved facilities following strict environmental standards. It recovers valuable materials like lithium, cobalt, and nickel, supporting the circular economy by using these materials to produce new batteries or other products.
Vermont	■ Policy Reference: Vermont Primary Battery and Rechargeable Battery Product Stewardship Law Act 152 (2024) [54]. ■ Manufacturer Responsibilities: A manufacturer ensures consumers can drop off used batteries at service centers, dealerships, or recycling centers, which are then transported to specialized facilities for safe processing. ■ Compliance: ANR reviews manufacturers’ plans to ensure adequate collection points, effective transportation, and environmentally sound recycling processes, ensuring strict adherence to standards. ■ Programs (Call2Recycle Partnership): The program ensures safe recycling of hazardous materials at regulated facilities and recovers valuable materials like lithium, cobalt, and nickel for new battery production, supporting a circular economy and reducing the environmental impact.

ATVM Loan Program [Public Law 110-140, Energy Independence and Security Act of 2007, Title XIII, Section 136] [Old]

The ATVM Loan Program, established under the Energy Independence and Security Act (EISA) of 2007 [55], aimed to reduce US oil dependence, increase energy security, and cut greenhouse gas emissions by supporting the development of advanced technology vehicles. The program targeted light-duty cars and components that significantly improve fuel economy compared to conventional vehicles. It provided direct loans to automotive manufacturers and component suppliers to re-equip, expand, and establish manufacturing facilities in the US, with an initial funding allocation of USD 25 billion for retooling factories to produce fuel-efficient vehicles.

Expansion Under the Bipartisan Infrastructure Law [Public Law 117-58, Infrastructure Investment and Jobs Act of 2021, Title IX, Subtitle B, Section 90002] [New]

The ATVM Loan Program was expanded under the Bipartisan Infrastructure Law (BIL) [Public Law 117-58, Infrastructure Investment and Jobs Act of 2021, Title IX, Subtitle B, Section 90002] to enhance its scope and impact, reflecting current technological and economic priorities [56]. The fundamental changes include broader support for advanced battery technologies and the entire supply chain, not just light-duty vehicles. The expansion emphasizes developing a domestic supply chain for battery materials, components, and manufacturing, including battery-grade critical minerals, precursor materials, and battery cell and pack production. Additional funding has been allocated to support these goals, ensuring significant investment in production facilities and infrastructure. The program aims to create well-paying manufacturing jobs, stimulate economic growth by supporting domestic production, and reduce reliance on foreign supply chains [57]. It aligns with broader environmental goals, including achieving a net-zero emissions economy by 2050 and having electric vehicles constitute half of all new light-duty vehicle sales by 2030.

Implementation Details

• Official name: Infrastructure Investment and Jobs Act.
• Public law number: Public Law 117-58
• Effective date: 15 November 2021

Description of the Policy

(a)

Supply Chain Investment

The policy guarantees that the United States builds a competitive industry for processing crucial minerals required for battery production, focusing on increasing local capacity for mining, refining, and recycling these minerals to reduce reliance on foreign sources. To achieve this, investments are being aimed at growing domestic mining activities for essential minerals such as lithium, cobalt, nickel, and rare earth elements by exploring new mining sites and improving current ones to ensure a stable supply of raw materials. The program also encourages the creation of refining facilities in the United States to convert raw minerals into battery-grade materials, which are critical for manufacturing the high-purity materials required for new battery technologies [58]. Furthermore, investments are being made in advanced recycling technology to recover essential minerals from used batteries and electronic debris, reducing waste while increasing the supply of crucial materials. The Department of Energy (DOE) has provided subsidies to efforts to develop a domestic lithium battery supply chain and recycling programs.

(b)

National Security:

The goal is to increase domestic manufacturing of battery components to improve national security by lowering reliance on foreign organizations and minimizing potential supply chain interruptions and geopolitical threats. To do this, the program encourages establishing and growing manufacturing facilities in the United States for essential battery components such as cathodes, anodes, separators, and electrolytes. This emphasis on self-sufficiency is intended to increase resilience and stability in the face of international market changes and geopolitical concerns by establishing a robust domestic supply chain. Companies such as Tesla, GM, and Ford have made significant investments in projects such as building advanced battery manufacturing plants in several states, contributing to national security by localizing the manufacture of essential battery components.

(c)

Environmental Impact:

The purpose is to promote the research and deployment of advanced battery technologies, which are critical for the clean energy transition, allowing for the storage of renewable energy and contributing to the 100% clean electricity target by 2035. The policy promotes technologies that allow for efficient energy storage from renewable sources like solar and wind to ensure a steady and predictable energy supply [59]. The policy also intends to lower the carbon footprint of the transportation and energy sectors by developing battery technology for electric vehicles (EVs) and energy storage systems. Significant investments have been made in initiatives such as large-scale battery storage systems and expanding EV charging infrastructure, both critical components of the clean energy transition.

General FEMP Energy Efficiency Initiatives [Public Law 110-140, Title IV, Subtitle C, Section 432, Public Law 95-619, Amended Multiple Times, and Public Law 109-58, Title I, Subtitle B, Section 103] [Old]

The Federal Energy Management Program (FEMP) initially focused on broad energy efficiency initiatives across federal facilities. These initiatives were guided by various Department of Energy (DOE) directives and guidance documents [Public Law 110-140, Title IV, Subtitle C, Section 432, Public Law 95-619, amended multiple times, and Public Law 109-58, Title I, Subtitle B, Section 103]. The program aimed to improve energy and water efficiency, reduce greenhouse gas emissions, and ensure energy resilience in federal operations [55,60]. Key strategies included optimizing building performance, enhancing lighting and HVAC systems, and implementing renewable energy projects.

Executive Order 14008 and the Infrastructure Investment and Jobs Act [Executive Order 14008, and Public Law 117-58, Title IX, Subtitle B] [New]

The Federal Energy Management Program (FEMP) has expanded its focus to include battery storage projects as part of broader initiatives under [Executive Order 14008], “Tackling the Climate Crisis at Home and Abroad”, and the Infrastructure Investment and Jobs Act [Public Law 117-58, Title IX, Subtitle B]. These initiatives aim to enhance energy resilience, integrate renewable energy sources, and reduce greenhouse gas emissions across federal facilities [56,61]. By providing technical assistance, funding, and guidance for deploying advanced battery storage systems, FEMP supports the US government’s sustainability and climate goals, ensuring that federal operations lead by example in adopting clean energy technologies.

Implementation Details

• Official name: Executive Order 14008: Tackling the Climate Crisis at Home and Abroad.
• Reference number: Executive Order 14008
• Date effective: 27 January 2021
• Official name: Infrastructure Investment and Jobs Act.
• Reference number: Public Law 117-58, Title IX, Subtitle B
• Date effective: 15 November 2021

Description of the Policy

(a)

Executive Order 14008:

The goal of President Biden’s executive order, issued on 27 January 2021, is to prioritize addressing the climate crisis through a whole-of-government approach, directing federal agencies to focus on clean energy technologies, including energy storage, to reduce carbon emissions and improve resilience. The directive focuses on establishing innovative energy storage systems across government sites to help integrate renewable energy sources and increase grid stability. To carry out this instruction, federal agencies, including the Department of Energy (DOE), are responsible for identifying opportunities for implementing battery storage and incorporating these systems into their energy management programs. For instance, the United States Department of Defense has implemented battery storage initiatives at military stations such as the Marine Corps Air Station Miramar in California, where a microgrid with battery storage improves energy security and promotes the use of renewable energy.

(b)

Infrastructure Investment and Jobs Act (IIJA):

The Infrastructure Investment and Jobs Act (IIJA), passed on 15 November 2021, seeks to update the nation’s infrastructure, particularly energy infrastructure [62]. The act encourages the development and implementation of renewable energy technology, particularly improvements to energy storage capacity. To do this, the IIJA provides significant money for energy storage projects, such as grants and technical help installing battery storage systems at federal sites. For example, the IIJA provided funding for building a large-scale battery storage system at Fort Carson Army Base in Colorado, improving energy resilience and promoting renewable energy integration. The act requires examining and implementing energy storage options to increase the strength and efficiency of the federal energy systems. The Department of Energy (DOE), through the Federal Energy Management Program (FEMP), provides technical help, funding possibilities, and project advice. The DOE, for example, has provided grants to NASA Johnson Space Center to deploy a lithium-ion battery system, improving energy reliability and sustaining mission-critical operations.

(c)

Technical Assistance and Evaluation:

The Federal Energy Management Program (FEMP) aims to provide technical help to federal agencies in evaluating and executing energy storage projects. This service includes determining the viability of battery storage systems, designing and installing them, and optimizing their performance. FEMP’s services include conducting site surveys, generating project specifications, performing financial analysis, and verifying compliance with federal energy regulations. For example, FEMP conducted a site evaluation for the United States Postal Service’s facility in Los Angeles, California, to determine the viability of adding a battery storage system to manage peak energy demand and save electricity costs. Several government locations, including military bases and national labs, are being assessed for prospective energy storage installations as part of efforts to cut energy costs, improve energy security, and promote federal sustainability objectives. One example is the Oak Ridge National Laboratory in Tennessee, which developed a battery storage system to enable grid integration and energy storage research, lowering energy costs and increasing research capacities.

(d)

Coordination and Collaboration:

FEMP actively works with other federal agencies, including the Department of Defense (DoD) and the General Services Administration (GSA), to encourage the use of energy storage technologies. For example, FEMP and the DoD collaborated to establish a battery storage system at the United States Army’s Fort Hood in Texas, increasing the base’s energy resilience and supporting its sustainability objectives. Furthermore, FEMP promotes public–private partnerships to utilize private sector expertise and money to deploy sophisticated energy storage technologies. The GSA and a commercial energy business collaborated to install a battery storage system at the Ronald Reagan Building and International Trade Center in Washington, D.C., resulting in lower energy costs and better grid stability.

Lithium–Ion Battery Policies

The US has established comprehensive policies to develop a robust domestic supply chain for lithium batteries and ensure efficient recycling of critical minerals. The National Blueprint for Lithium Batteries 2021–2030, published by the Federal Consortium for Advanced Batteries (FCAB), aims to cover the entire lifecycle of batteries, from raw material extraction to end-of-life recycling and reuse. It emphasizes the development of technologies and processes for efficient recycling, infrastructure development, public–private partnerships, and international collaboration to promote a circular economy for battery materials.

The Battery and Critical Mineral Recycling Act of 2021, introduced as S.1918, supports research, development, and demonstration projects to improve battery recycling technologies and critical mineral recovery. The Act establishes grant programs to incentivize recycling and reuse and funds research initiatives to enhance recycling efficiency. It mandates the Department of Energy (DOE) to oversee the implementation of these initiatives.

The major points of the Federal Consortium for Advanced Batteries (FCAB) and Battery and Critical Mineral Recycling Act are encapsulated in Table 11.

Table 11. The main points between [FCAB] and [S.1918] policies in lithium-ion batteries.

Federal Consortium for Advanced Batteries (FCAB)

Battery and Critical Mineral Recycling [S.1918]

■ Develop a robust domestic supply chain for lithium batteries. ■ Recycle the (EOL) batteries and reuse the valuable materials in the production of new ones. ■ Invest in R&D to improve the efficiency and cost-effectiveness of lithium-ion battery recycling processes. ■ Implement policies and regulations that incentivize battery recycling and ensure environmentally sound disposal practices. ■ Encourage battery manufacturers to design batteries with recycling in mind. ■ Develop markets for recycled battery materials by ensuring that they meet the quality standards required for new battery production.

■ Support the research, development, and demonstration of advanced battery recycling and critical mineral recovery. ■ Provide financial assistance to companies and research institutions working on innovative recycling technologies. ■ Enhancing the efficiency and cost-effectiveness of battery recycling. ■ Implement programs aim to lower the costs associated with recycling and increase the recovery rates of valuable materials such as lithium. ■ Improving the processes for separating and purifying critical minerals from used batteries. ■ The Act aims to ensure that valuable materials are not wasted, and environmental harm is minimized.

(a)

National Blueprint for Lithium Batteries 2021–2030 [Federal Consortium for Advanced Batteries (FCAB)]

The Federal Consortium for Advanced Batteries (FCAB) released the National Blueprint for Lithium Batteries 2021–2030, which attempts to address every stage of the battery lifetime, from extraction of raw materials to recycling and re-use at the end of life [63]. To support a circular economy for battery materials, it strongly emphasizes the creation of technologies and procedures for effective recycling, infrastructure development, public–private partnerships, and international cooperation. The primary objective of the National Blueprint for Lithium Batteries 2021–2030 is to develop a robust domestic supply chain for lithium batteries. This includes the entire lifecycle of batteries from raw material extraction through production, utilization, and (EOL) recycling and reuse.

Implementation Details

• Official name: National Blueprint for Lithium Batteries 2021–2030.
• Reference number: It is a strategic framework published by the Federal Consortium for Advanced Batteries (FCAB), which includes various federal agencies.
• Date effective: June 2021

Description of the Policy

(a)

Recycling and Reuse:

The goal is to promote the development of technology and procedures for efficiently recycling lithium-ion batteries, ensuring that valuable materials may be recovered and reused to make new batteries. To accomplish this, investments are made in research and development (R&D) to improve the efficiency and cost-effectiveness of lithium-ion battery recycling processes, focusing on advanced separation and extraction technologies for recovering critical materials like lithium, cobalt, and nickel. Furthermore, the policy prioritizes creating and growing the infrastructure required for large-scale battery recycling, such as recycling facilities and logistics networks for collecting and transporting end-of-life batteries.

To assist these efforts, legislation, and regulations are in place to encourage battery recycling and ensure environmentally sound disposal procedures. This includes extended producer responsibility (EPR) schemes, which hold manufacturers accountable for managing their products at the end of life. Furthermore, public–private partnerships are encouraged to speed up the development and deployment of recycling technologies by leveraging government and industry’s necessary money and knowledge. Consumer awareness and education campaigns are also encouraged to educate consumers and companies on the need for battery recycling and the availability of recycling schemes.

(b)

Circular Economy:

The goal is to create a circular economy for battery materials, reducing environmental impact and dependency on new raw materials by reintegrating spent battery materials into supply chains. To facilitate this, battery makers are encouraged to design goods with recycling in mind, making them easier to disassemble and utilizing components that can be quickly recovered and reused. Comprehensive lifecycle evaluations are undertaken to examine the environmental and economic implications of battery production, usage, and disposal, assisting in identifying potential for enhancing sustainability throughout the battery’s lifecycle.

Setting targets for material recovery and reuse from end-of-life batteries is critical for stimulating innovation and investment in recycling technology. Furthermore, promoting second-life applications for retired EV batteries, such as stationary energy storage devices, increases battery life and delays disposal. To further promote the circular economy, markets for recovered battery materials are being formed, guaranteeing they fulfill the quality criteria necessary for manufacturing new batteries. This results in stable demand and makes recycling economically viable.

International collaboration is crucial in harmonizing standards and practices for battery recycling and material recovery. This global approach is essential in addressing the environmental impact of battery production and disposal worldwide. Working with international partners enhances the efficiency and effectiveness of recycling efforts, helping to reduce the environmental impact of battery production and disposal worldwide. The key economic data and funding allocations under the Federal Consortium for Advanced Batteries (FCAB) are summarized in Table 12.

Table 12. The key economic data and funding allocations under the Federal Consortium for Advanced Batteries (FCAB).

Matrix	Economic Data
Battery Recycling and Second-Life Applications Program (2021–2026)	Authorized under the Bipartisan Infrastructure Law, this program allocates USD 200 million over five years to support research, development, and demonstration projects focused on EV battery recycling and second-use applications [64].
Advanced Battery Research and Development Consortium (2023)	The US Department of Energy announced more than USD 192 million in new funding for recycling batteries from consumer products [65].
DOE Funding for Battery Manufacturing and Recycling (2022)	USD 2.8 billion for domestic manufacturing of batteries for electric vehicles (EVs) and the electrical grid [66].
Projected US Battery Market Growth	Expected to reach USD 100 billion in the coming decades [67].
Recent DOE Investment in Battery Supply Chain (2024)	Over USD 3 billion allocated to 25 projects across 14 states, creating approximately 12,000 jobs [68].
Loan for EV Battery Factories (2024)	USD 7.54 billion loan to Stellantis and Samsung SDI for two EV battery factories in Indiana [69].

Battery and Critical Mineral Recycling Act of 2021 [S.1918]

The Battery and Critical Mineral Recycling Act of 2021 supports the research, development, and demonstration of advanced battery recycling and critical mineral recovery [70]. This aims to ensure that the United States develops a sustainable and efficient approach to managing the EOL of Li-ion batteries, which are crucial for electric vehicles.

Implementation Details

• Official name: Battery and Critical Mineral Recycling Act of 2021.
• Reference number: S.1918
• Date effective: introduced on 27 May 2021

Description of the Policy

(a)

Grants and Funding:

The Act provides substantial funding for projects that improve battery recycling technologies and processes. It establishes three grant programs to incentivize the reuse and recycling of batteries and their critical minerals. These grants aim to enhance the overall efficiency of recycling operations and support the creation of a robust recycling infrastructure. For instance, one of the key initiatives is the establishment of grant programs that provide financial assistance to companies and research institutions working on innovative recycling technologies. These programs aim to lower the costs associated with recycling and increase the recovery rates of valuable materials such as lithium, cobalt, and nickel.

(b)

Research and Development:

The Act supports various R&D initiatives aimed at enhancing the efficiency and cost-effectiveness of battery recycling. It encourages the development of new technologies and methods that can make the recycling process more sustainable and economically viable. This includes improving the processes for separating and purifying critical minerals from used batteries. For instance, continuing the Lithium-Ion Battery Recycling Prize competition is a significant component of this Act. This competition incentivizes innovation by awarding prizes to individuals or teams that develop breakthroughs solving problems in collecting, storing, and recycling Li-ion batteries. The goal is to stimulate the creation of scalable and commercially viable recycling methods.

Implementation and Impact:

The Act is designed to steer the Department of Energy (DOE) towards funding programs that foster the development of battery recycling infrastructure and technology. This forward-thinking strategy promotes a circular economy by recovering and reusing materials from end-of-life batteries, reducing the environmental impact and the need for additional raw materials. For instance, the DOE’s Lithium-Ion Battery Recycling Prize is a testament to this, as it encourages innovative disassembly and material recovery options, thereby accelerating recycling efforts.

This legislation is critical for resolving the developing issues with lithium-ion batteries in electric vehicles. The Act aims to reduce waste and pollution by improving recycling technologies and infrastructure. Notably, DOE support enabled the American Battery Technology Company (ABTC) to develop a Nevada recycling facility to recover and recombine essential elements, minimizing the demand for new raw materials.

Key matrix and data points for the Battery and Critical Mineral Recycling Act (S.1918) are tabulated in Table 13.

Table 13. The key economic data and initiatives under the Battery and Critical Mineral Recycling Act (S.1918) [70].

Metrix	Economic Data
Lithium-Ion Battery Recycling Prize	The Department of Energy (DOE) is authorized to continue this competition, with an additional USD 10 million appropriated for fiscal year 2021 to support Phase III, focusing on innovative solutions for battery recycling.
State and Local Battery Collection Programs	The Act establishes a grant program for states and local governments to develop or enhance battery collection, recycling, and reprocessing programs. The non-federal cost share for these projects is 50% of the total cost.
Retailer Battery Collection Systems	Grants are available for retailer’s selling batteries or battery-containing products to implement systems for accepting and collecting used batteries for reuse, recycling, or proper disposal. These systems must offer take-back services at no cost to consumers.
Voluntary Labeling Program	The Act directs the DOE and the Environmental Protection Agency (EPA) to establish a voluntary labeling program to improve battery collection and reduce waste, facilitating consumer awareness and participation in recycling efforts.

Recycling Steps

(a)

Collection:

Manufacturers, dealerships, and recycling companies set up EV battery collecting locations, which are administered in collaboration with automakers and third-party recyclers such as Redwood Materials and Li-Cycle [71,72]. Ads, social media, and events boost consumer awareness, while collection stations stress safety by training staff and utilizing appropriate containers to prevent spills or fires.

(b)

Transportation:

Transportation companies adhere to federal safety laws such as DOT guidelines [73], using fireproof containers and real-time tracking to ensure safe battery shipments to recycling sites. They also document each shipment, including the battery’s origin, condition, and destination, to guarantee correct handling and environmental compliance during transit.

Storage

Recyclers and waste management facilities create secure, climate-controlled storage chambers for incoming batteries, ensuring stability and safety until processing. Advanced inventory systems monitor each battery’s progress from collecting to dismantling, optimizing timing and procedures. Furthermore, regulators such as the Environmental Protection Agency (EPA) regularly audit these locations to guarantee compliance with environmental standards [74].

Dismantling

Batteries are dismantled manually or automatically to separate components such as modules and cells, and businesses like Tesla and Redwood Materials are developing automated procedures to improve material recovery efficiency. The main goal is to extract valuable metals such as lithium, cobalt, nickel, and graphite. Recycling companies established in the United States, such as Li-Cycle and Ascend Elements [75], use patented technology to increase recovery rates for these critical minerals. Hazardous waste management standards closely adhere to adequately handling and neutralizing harmful components such as electrolytes to prevent environmental contamination [76].

Recycling and Processing

Depending on the battery chemistry, recovered components are chemically processed using procedures such as hydrometallurgy or pyrometallurgy to make them suitable for reuse. Recycling facilities follow EPA rules and state requirements to reduce emissions and waste during recycling, assuring environmental compliance. Furthermore, the recycled materials are subjected to rigorous quality control testing before being reintroduced into the supply chain to manufacture new batteries.

Reporting and Compliance

Companies regularly submit detailed reports to regulatory bodies like the EPA, outlining the amount of material recovered and recycled. Internal and external audits are conducted to ensure that recycling programs comply with current safety and environmental regulations. Additionally, companies maintain transparency by sharing progress reports and collaborating with stakeholders to improve recycling practices continuously.

6. Empirical Data: Effectiveness of Recycling Technologies and Policies

6.1. Case Studies on Recycling Success

6.1.1. China

CATL’s Recycling Initiatives: Contemporary Amperex Technology Co., Limited, which is by far the leading battery manufacturer, has constructed state-of-the-art facilities in Guangdong province in which over 90% of lithium and cobalt can be recovered from used batteries. This facility is hydrometallurgical in modes of modern application and focused on minimal environmental impact in the process of achieving high recovery rates. Recycled material is chained into production cycles again for making new batteries, thereby limiting the reliance on raw virgin materials. Further, the company invests in research and development to optimize recycling efficiency. Policies such as the 14th Five-Year Plan have played an important role in formulating recycling legislatures, propelling infrastructure development, and setting ambitious sustainability targets [77,78,79,80,81,82,83,84].

Empirical Evidence: According to the Ministry of Industry and Information Technology (MIIT), China’s recycling rate for EV batteries is now 40% in 2023, compared to just 25% in 2020 [85,86,87,88]. This phenomenal growth is because of adopting extended producer responsibility (EPR), which holds manufacturers accountable to ensure the collection and recycling of used batteries. Furthermore, the new policy encourages innovation and creates a need for companies to give more than the cost of collection manufacturing recycling target incentives through grants and tax breaks. A nationwide battery tracking infrastructure has significantly improved the capabilities of collection and recycling operations and ensured that a higher percentage of EOL batteries are disposed of well.

6.1.2. United States

(a)

Redwood Materials, based in Nevada, United States, is a pioneering company in the domestic recovery of critical metals such as nickel, cobalt, and lithium from end-of-life EV batteries. With advanced hydrometallurgical processes, Redwood can achieve recovery efficiencies of over 95% for its key metals. Its processes enable environmentally friendly and economically viable extraction with minimal reliance on energy-intensive mining operations. The company also introduces innovations in battery disassembly through automated sorting and separation technologies, enhancing material recovery and streamlining the recycling process. By returning recovered materials to the EV battery supply chain, Redwood contributes to building a circular economy within the US and improves the overall sustainability of domestic EV production [89,90,91,92,93]. While several international companies have established large-scale battery recycling operations, Redwood Materials represents a leading example of such efforts within the United States context.

(b)

Policy Impact: S.1918, Battery and Critical Mineral Recycling Act of the US, allocates a large part of funds to the construction of facilities such as Redwood Materials. The grant from Greentech between 2021 and 2024 is aimed at funding infrastructure development and new technology that will reduce virgin raw materials dependency by 30 percent. Redwood has, for example, used federal dollars to scale up its operations, increasing its recycling capacity by 50 percent while introducing its gram-scale advanced processing units capable of handling higher volumes of spent batteries. Such policy also enables the cooperation between their own battery manufacturers and recycling facilities towards enabling a circular economy of EV batteries in the United States [94,95].

7. Technological Innovations in Recycling

7.1. Advanced Recycling Techniques

7.1.1. China

(a)

Hydrometallurgy

Recycling lithium, cobalt, and other critical metals from old EV batteries using aqueous solutions is called hydrometallurgy. Plants in China largely use this process because it yields high recovery rates with a minimal environmental footprint. In this procedure, special leaching agents select these metals, and combined with advances in filtration systems, recycling will ensure that over 90% of metals are recovered in pure form, and ready for use in new batteries. For example, hydrometallurgical research is gaining traction so that recycling facilities in Guangdong can raise their cobalt and lithium recovery rates over 90% and even further, with the figure now being much higher than that [96,97,98,99].

(b)

Automation in Recycling

This integration of robotic and AI-based systems in recycling has brought about amazing strides in efficiency and precision. Robotic arms with highly sensitive equipment for detecting items will be used in Shanghai installations to disassemble components in EV batteries such as cathode, anode, and casing. Furthermore, AI algorithms improve the sorting process of materials, thereby reducing human error while operating by much more than 40% throughput. The whole automation has been able to achieve a labor cost reduction and lesser material contamination, resulting in higher recovery yields.

7.1.2. United States

(a)

Direct Recycling:

Direct recycling aims at ensuring that the cathode materials remain unchanged and that there will be minimum chemical processing in their use in new batteries. Such methods are energy-efficient, saving up to thirty percent of the energy consumed by normal methods like pyrometallurgy. Redwood Materials was the first company to directly recycle EV batteries, recovering important properties like nickel and cobalt and preserving their electrochemical properties. Such innovation greatly reduces the carbon footprint associated with battery recycling [100,101,102,103].

(b)

AI-Driven Sorting:

Advanced AI algorithms are increasingly used for the sorting of EV battery components. These systems can detect precious material from waste by analyzing material properties in real-time. US startups have cited recovery improvements of up to 25%, thanks to the precision offered by AI-driven sorting technologies [104,105].

Commercialization Gap between China and the US:

While both China and the United States are advancing in EV battery recycling technologies, there remains a clear gap in commercialization maturity. Chinese companies such as BRUNP, GEM, and Huayou Cobalt have fully commercialized recycling systems capable of producing battery grade materials like nickel sulfate and cobalt sulfate, which are sold directly to cathode manufacturers. In contrast, most US-based recyclers, including Redwood Materials and Li-Cycle, are currently focused on producing black mass, an intermediate product containing a mix of critical metals. The refining infrastructure to convert black mass into battery-grade materials is still under development in the United States. However, ongoing federal support and private sector investments are rapidly closing this gap, with several US recyclers planning to operationalize full refining capabilities in the near future see Table 14 for comparison.

Table 14. Comparative overview of battery recycling companies in China and the United States.

Company	Country	Processing Capacity and Focus	Commercialization Level
BRUNP Recycling	China	Processes approximately 120,000 tons of battery waste annually, achieving a metal recovery rate of 99.3% for nickel, cobalt, and manganese. Engages in comprehensive recycling, producing battery-grade materials.	Fully commercialized operations, supplying refined materials directly to battery manufacturers.
GEM Co., Ltd.		Has production capacity of 100,000 tons/year of battery-grade nickel–cobalt salt crystals. Includes 33,000 tons of nickel sulfate.	Established commercial operations, produces and supplies nickel sulfate, cobalt sulfate, and ternary precursors to battery producers.
Redwood Materials	USA	Processes about 20 GWh of lithium-ion batteries annually, equivalent to over 250,000 electric vehicles. Currently produces black mass. Refining facilities for battery-grade materials are under development.	Partially commercialized. Focused on black mass production. Currently developing refining processes; aims to supply battery materials domestically in the near future.

8. Evaluation of Recycling Efficiency (Quantitative Metrics)

In contrast, China, with its upgraded EPR policies, has increased the collection rates of batteries to attain resource recovery efficiencies of 90%, and an impressive drop in energy consumption level, as the collection now uses up to 50% less energy than that of traditional mining. In addition, advanced hydrometallurgy processes have significantly contributed to these achievements and provide an economically viable and environmentally friendly alternative to raw material extraction. Facilities such as Redwood Materials in the USA provide a remarkable 95% material recovery, as well as considerable energy savings and CO₂ improvement, as shown in Table 15. Direct recycling and AI-driven sorting are some of the innovations that further boost the performance and environmentally friendly nature of recycling operations.

Table 15. Highlights the key differences in policy impacts between China and the US.

Country	Recycling Rate (%)	Resource Recovery Efficiency (%)	Emission Reduction (Tons CO2)
China	40%	90%	2.5 million
United States	35%	95%	1.8 million

9. Observation

China has developed a comprehensive and strategic policy framework for managing the lifespan of (EV) batteries, from manufacturing to (EOL) recycling. These regulations are closely aligned with the nation’s overarching aims of encouraging the use of new energy vehicles (NEVs) and decreasing environmental impact. The country’s Five-Year Plans, particularly the 13th and 14th, prioritize the development of energy storage and battery recycling technologies. These plans set lofty aims for lowering battery costs and improving recycling efficiency, establishing China as a global leader in the EV market. In addition to these broad goals, the Chinese government has adopted several incentives, such as subsidies and tax breaks, to encourage recycling (EOL) batteries. These incentives are supplemented by solid regulatory requirements that compel battery recycling programs and manufacturers to adopt take-back systems, ensuring that battery waste is effectively managed. Furthermore, municipal initiatives in key cities such as Beijing, Shanghai, and Shenzhen reinforce national policy by strengthening China’s battery recycling capacity through partnerships with private enterprises and investments in recycling infrastructure.

The United States’ approach to end-of-life EV battery recycling is characterized by a blend of federal and state-level programs, emphasizing public–private partnerships. At the federal level, programs like the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program and the Bipartisan Infrastructure Law (BIL) aim to promote the development of innovative battery technologies and establish a domestic supply chain for crucial battery materials. These programs are supplemented by state-specific regulations in California, New York, and Washington that govern the proper handling, recycling, and disposal of lithium-ion batteries. These state regulations safeguard the environment and encourage a circular economy within their jurisdictions. US rules also promote the recycling and recovery of essential minerals required for lithium-ion battery production. Strategic frameworks such as the National Blueprint for Lithium Batteries 2021–2030 and the Battery and Critical Mineral Recycling Act of 2021 aim to improve recycling technology and reduce reliance on international supply chains. Furthermore, the United States government aggressively promotes public–private partnerships to enhance battery recycling technology, recognizing the vital role of private industry in expanding recycling operations and ensuring that recovered materials fulfill the quality standards needed to manufacture new batteries.

When comparing the two countries, both China and the United States understand the crucial need to have solid policies for recycling (EOL) electric vehicle batteries. However, their methodologies are fundamentally different. China’s policy is more centralized, with specific directives embedded in national development goals. At the same time, the United States strategy is more decentralized, with state governments and private-sector partnerships playing an important role. Furthermore, China’s rules are more stringent, with mandated recycling requirements and direct government intervention. In contrast, US policies prioritize incentives, technological innovation, and the creation of a sustainable supply chain for crucial minerals. These distinctions reflect each country’s larger policy environment and industrial strategy, influencing their methods to control EV battery lifecycle are encapsulated in Table 16.

Table 16. Comparison of recycling policy aspects between China and the United States.

Aspect	China	USA
Policy Structure	Centralized, with clear directives integrated into national Five-Year Plans.	Decentralized, with significant autonomy given to state governments and private sector partnerships.
Regulatory Approach	Prescriptive, with mandatory recycling requirements and direct government intervention.	Emphasizes incentives, technological innovation, and voluntary measures to encourage compliance.
Government Involvement	Strong government role in setting and enforcing recycling standards.	Federal government sets broad guidelines, but state governments significantly influence specifics.
Economics Incentives	Limited economic incentives for recycling, focusing more on regulatory compliance.	Focuses on providing incentives, such as subsidies and tax credits, to encourage recycling and innovation.
Technological Development	Faces challenges due to a lack of advanced recycling technologies.	Emphasis on research and development to advance recycling technologies and processes.
Implementation	National policies reinforced by local initiatives in major cities.	Implementation varies widely by state, leading to inconsistencies in recycling practices.
Supply Chain Focus	Less emphasis on developing a sustainable supply chain for critical minerals.	Strong focus on building a domestic supply chain for critical minerals essential for battery production.
Stakeholder Engagement	Limited focus on public awareness and industry collaboration.	Encourages public–private partnerships and industry engagement to foster innovation and compliance.
Overall Strategy	Centralized control with mandatory compliance measures.	Decentralized, incentive-based approach with a focus on innovation and state-level customization

10. Conclusions

The exponential growth of electric vehicle (EV) adoption presents a pressing challenge in managing end-of-life (EOL) EV battery waste. Without effective policies and recycling strategies, the environmental, economic, and social impacts of EOL batteries could be substantial. This study provides a comprehensive evaluation of the regulatory frameworks for EV battery recycling in China and the United States, analyzing their effectiveness in mitigating waste and recovering critical materials.

Our analysis highlights that China has achieved a battery recycling rate of 40% with a material recovery efficiency of 90%, primarily through state-mandated policies and centralized regulations. In contrast, the US reports a slightly lower recycling rate of 35%, but exhibits a higher recovery efficiency of 95%, attributed to advanced technological innovations and private-sector involvement. Both countries emphasize the importance of extended producer responsibility (EPR) schemes, financial incentives, and stringent recycling mandates to ensure sustainable battery lifecycle management.

Despite these advancements, several critical gaps persist. Many nations lack standardized policies for battery collection, transportation, and disposal, leading to inefficiencies and environmental risks. Moreover, current recycling processes remain energy-intensive, with hydrometallurgical and pyrometallurgical methods still requiring optimization to reduce emissions and improve cost-effectiveness. The study also underscores the need for cross-border collaboration in material supply chains, particularly in securing lithium, cobalt, and nickel, which are essential for battery manufacturing.

To address these challenges, the study proposes the following recommendations:

• Policy harmonization and global collaboration: establish a standardized international regulatory framework to enhance material traceability and ensure the responsible management of EOL EV batteries.
• Technological innovation: increase research investment in direct recycling and AI-driven sorting systems, which have demonstrated up to 25% improvement in recovery efficiency.
• Economic incentives: expand financial mechanisms such as tax credits, subsidies, and recycling grants to promote industry-wide adoption of sustainable practices.
• Stakeholder engagement: foster public–private partnerships to streamline collection systems and integrate circular economy models into EV battery supply chains.

In conclusion, this study underscores the urgency of adopting a multi-faceted approach to EV battery waste management, incorporating regulatory frameworks, technological advancements, and economic incentives. By leveraging best practices from leading nations, policymakers can develop sustainable and scalable recycling models that not only mitigate environmental harm, but also support the growing EV industry. Future research should focus on life cycle cost analysis, second-life battery applications, and advanced material recovery techniques to further optimize battery circularity.