EU Introduces New Rules to Boost Recycling Efficiency and Critical Material Recovery from Waste Batteries by 2025

The European Commission has introduced new rules to enhance the recycling efficiency and material recovery from waste batteries, which are vital for the green transition and achieving climate neutrality by 2050.

These rules set clear and consistent guidelines for recyclers to calculate and verify recycling efficiency, targeting batteries containing lead-acid, nickel-cadmium, lithium, and other materials.

The aim is to support a circular economy by keeping valuable materials, especially critical and strategic raw materials like cobalt, copper, lithium, and nickel, in circulation for longer and reducing waste.

The new methodology establishes specific processes for measuring both the overall recycling efficiency and the recovery rates of critical raw materials from waste batteries. To ensure fairness and transparency in the EU market for secondary raw materials, a harmonised documentation format for recyclers to report to Member State authorities has also been introduced. These measures are designed to prevent unfair competition and promote high-quality recycling practices across the EU.

These rules will come into force on 24 July 2025, aligning with ambitious targets set in the Batteries Regulation. By the end of 2025, recyclers must achieve recycling efficiencies of 75% for lead-acid batteries, 65% for lithium-based batteries, and 80% for nickel-cadmium batteries, with further increases planned by 2030.

Material recovery targets for critical metals are set at 90% by 2027 and will rise to 95% by 2031, with lithium recovery targets increasing from 50% to 80% over the same period.

This regulatory framework is based on technical recommendations from the Joint Research Centre and stakeholder input, aiming to foster a resilient and competitive battery recycling sector in Europe.

Higher recycling-efficiency and material-recovery targets under the EU Battery Regulation reshape the economics for collectors, sorters and recovered-material offtakers - and the effects propagate through EV OEM supply chains almost immediately. Our circular-economy and supply-chain-and-operations teams have been working with clients modelling what compliant closed-loop batteries actually cost.