Recycling is becoming increasingly vital as the demand for batteries and their critical raw materials surges, and the volume of end-of-life batteries rises in parallel – leading to a dramatic increase in hazardous waste. As we race towards a future of cleaner transport, Fortum Battery Recycling asks a critical question: are we building a truly sustainable, circular economy, or just a temporary quick fix?
Europe is currently highly dependent on imported battery materials, and the processing of hazardous battery waste is not transparent by any measure. Without a robust domestic recycling system, we risk leaking valuable resources such as nickel, cobalt and lithium back out of the continent.
The European Union has set a clear direction. By 2036, the EU’s battery regulation will require that 26% of cobalt, 15% of nickel and 12% of lithium used in batteries must be of recycled origin. This is a pivotal step toward building a closed-loop system, reducing reliance on external supply chains, and ensuring the responsible management of battery waste.
Achieving these goals requires a functioning European value chain for recycled materials. “Europe, and our automakers at the forefront, need to make strategic, longterm investments in sustainable and recycled domestic battery materials, despite price pressure from Chinese competitors. Otherwise, the export of valuable raw materials to China may accelerate further, which weakens the EU’s and European companies’ self sufficiency in raw materials”, explains Jaakko Savolainen, commercial director for Fortum Battery Recycling.
Furthermore, different battery technologies create challenges to recycling. Europe already has recycling systems for nickel-based batteries, but there is no corresponding infrastructure for LFP (lithium iron phosphate) batteries used in more affordable electric cars. “The recycling of LFP batteries is less economically attractive because, apart from lithium, they contain few valuable materials”, Savolainen says.
Recycling is not recycling without an end product
The goal of ‘recycling’ should not just be to dismantle batteries; it’s to create high-purity, sustainable raw materials that can be fed directly back into the battery manufacturing process. As Savolainen puts it, “For us, the recycling loop only closes when we offer the customer a high-quality end product. Collection is not recycling, and recycling cannot mean that the amount of waste increases.”
For Fortum Battery Recycling, the process delivers battery grade materials such as nickel and cobalt sulphates, lithium hydroxide, and recovered manganese and graphite – produced through a combination of in-house capabilities and strategic partnerships.
Circular economy is a team sport
Fortum operates a collection network spanning 20 countries, recycling sites in Germany and in Finland, and Europe’s largest hydrometallurgical refining hub in Harjavalta, Finland, where the company turns battery waste into a valuable European resource.
“The impact, however, is created through our partners,” Savolainen states. “While we have the technology to recover over 95% of critical metals, building a truly circular economy is a team sport. No single company can manage the entire, complex value chain alone.”
Achieving this requires a seamless chain of trust and partnership between specialists at every step:
- Logistics partners: The journey begins with the safe and compliant collection and transportation of end-of-life batteries. This requires a network of logistics experts who can handle hazardous materials across borders.
- Compliance schemes: Compliance schemes play an important role in the European recycling value chain. By coordinating collection and ensuring regulatory compliance, they help guarantee that all end-of-life batteries are directed to approved recycling processes.
- Automotive OEMs: Automakers are at the beginning and end of the battery lifecycle. Close partnership with them is crucial for designing batteries with recycling in mind and for creating demand for the recycled materials in new vehicles.
- Tech providers and engineering companies: Continuous innovation is key. Collaboration with technology and engineering firms helps to scale up capacity, improve efficiency, and develop next-generation recycling techniques.
- Recycling partners: While Fortum has its own advanced recycling capabilities, the sheer volume of future battery waste will require a network of partners to ensure all collected materials can be processed to the highest standards, at locations that optimise efficiency, for example, by reducing unnecessary transportation.
A ‘battery value chain mantra’ for Europe
To rally the industry, Savolainen is proposing a ‘battery value chain mantra’, a set of guiding principles for every company involved in this ecosystem. It’s a call to action to work together towards a common goal.
Let’s not leak material out of Europe. Every used battery that is exported without being fully recycled is a loss for Europe’s economy and its strategic autonomy. We must build the capacity and the partnerships to keep these valuable resources within the continent.
Let’s support the use of EU origin raw materials. By creating a reliable supply of high-quality recycled materials, we can reduce our dependency on volatile international markets and build a more resilient European industrial base.
Let’s support low CO2 production. Recycling batteries locally using advanced, low-carbon technologies such as hydrometallurgy offers a significantly lower CO2 footprint compared to mining and refining virgin materials. This is a critical component of the green transition.
Calling for collaboration
The message is clear – the technology exists. The regulatory drive is in place. The most critical ingredient is a collaborative spirit and the will to make it happen.
“We have awesome companies in Europe, who have been working hard to become the leading specialists in their niche,” Savolainen notes. “Creating a working battery value chain depends crucially on how well all actors – from the mining of raw materials to recycling – are integrated into a common process.”
Europe must act now to take advantage of the opportunities of the circular economy and to be in a leading position in the global competition.
“We at Fortum Battery Recycling are actively seeking partners across the value chain who share this vision”, Savolainen concludes.
