Battery
Recycling
Critical material recovery from end-of-life lithium-ion batteries
Overview
The global electric vehicle revolution is creating an imminent wave of end-of-life lithium-ion batteries — an estimated 12 million tonnes by 2030. The technology frontier here is moving fast: operators in Germany and across Europe are advancing hydrolysis-based processes that dissolve and mechanically separate cell components to recover clean metal fractions at high purity, and specialists such as Li-Cycle and Redwood Materials have shown what recovery rates of 95%+ are possible at scale. REC 2 is studying this landscape closely as we shape our own battery recycling capability.
Our battery recycling strategy is designed to be vertically integrated with our materials and energy verticals: recovered lithium and cobalt would feed directly into battery supply chains, while recovered nickel and manganese would supply our rare metals trading operations. Second-life battery programmes — refurbishing cells that retain 70–80% capacity — are part of our vision to extend the economic life of packs before final recycling.
Carbon credit generation from battery recycling is a growing but underutilised revenue stream. REC 2 structures certified Scope 3 emission reduction credits from each recycling operation, verified against baseline scenarios of virgin material extraction. These credits are sold to battery manufacturers, automakers and technology companies seeking to meet supply chain decarbonisation commitments.
Why REC 2 is Investing Here
Lithium demand is projected to grow 6× by 2030 driven by EV adoption. Battery recycling is the only near-term solution to the supply gap — and REC 2 sits at the intersection of supply and demand.
Hydrometallurgical recycling recovers 95%+ of critical metals versus 60–70% from conventional smelting. REC 2's process advantage translates directly into higher recovered material value per tonne of input.
Battery manufacturers face mandatory recycled content requirements in the EU from 2030 onwards. REC 2's certified recycled material streams are contractually valuable to compliance-driven buyers well in advance of the regulatory deadline.
Team