Recycling lithium batteries: cost trap or opportunity for profit?

Recycling lithium batteries: cost trap or opportunity for profit?

On August 11, 2025, a team from the University of Münster published new findings on the costs of recycling lithium-ion batteries. The study, which appears in the renowned journal “Nature Reviews Clean Technology”, is entitled “Cost Modeling and Key Drivers in Lithium-Ion Battery Recycling”. The study shows that the costs of recycling vary greatly depending on the type of battery and the process used. Currently, recycling costs range between $1 and $22 per kilogram of battery material. The authors of the study criticize that the transparency and comprehensibility of the published cost models often remain inadequate.

What is particularly noticeable is that not all relevant costs are taken into account. Machine costs, for example, are only inadequately included in the calculations. However, there are also positive aspects: the profit from recycling can be up to $4 per kilogram. These discrepancies in costs result from different recycling processes, varying wages and high energy costs. The research team believes that the costs are acceptable because economic profitability is achieved in many cases. In their analysis, they emphasize the practical use of the results, which can make an important contribution to a more sustainable future.

Importance of recycling costs for industry

Recycling costs are crucial not only for the economic side of battery production, but also for the overall competitiveness of the battery industry. Companies face the challenge of meeting legal requirements while offering economically viable solutions. These costs affect the total cost of ownership of a battery product throughout its life cycle. The increasing pressure regarding sustainability, resource conservation and material traceability poses additional challenges for the industry.

The costs are made up of several factors, including collection, transport, sorting and the recycling process itself. While hydrometallurgical processes are more resource-efficient, pyrometallurgical processes are significantly more complex due to their high energy requirements. Innovative approaches and technologies, such as AI-supported sorting systems, promise savings potential, but require high initial investments that do not pay off immediately.

Challenges in implementing recycling processes

Another challenge is highlighted in a study by RWTH Aachen University, which deals with the recycling of electric vehicle batteries in Europe. Recycling is currently not profitable here due to the high investments, especially transport costs. Up to 70% of the total costs are accounted for by transport. In addition, most of the recovered black mass has to be sold abroad because European demand is not sufficient. Many recycling plants operate at a capacity of less than 10%, which is due to the low return volumes.

The infrastructure for chemical processing requires investments of around 23 euros per ton of input material. To reduce dependence on imports and improve sustainability, effective and profitable recycling processes are necessary. The authors of the study propose developing a decentralized recycling structure to shorten transport routes and combine regional pre-treatment processes with central chemical processing units. These measures could significantly improve the economic framework for recycling.

In summary, recycling lithium-ion batteries represents a multifaceted challenge. Intensive research and innovative solutions are needed to reduce costs and put the industry on a more sustainable course. The University of Münster and other research institutions play a central role in the development of practical solutions.