European Startups Advance EV Battery Recycling to Cut Costs and CO2

Two European startups have achieved key milestones in electric vehicle (EV) battery recycling, a crucial step toward meeting upcoming EU regulations, reducing dependence on China, and cutting carbon emissions.

From August 2030, EV batteries in Europe must contain at least 6% recycled lithium and nickel, and 16% cobalt, increasing five years later. This has sparked a race to innovate battery recycling.

UK-based Altilium, backed by investors like Sociedad Quimica y Minera de Chile and Japan’s Marubeni, announced that batteries using its recycled cathode active materials perform as well as or better than those made with virgin materials from China. A study from Imperial College London confirmed this breakthrough. According to Chief Operating Officer Christian Marston, Altilium's recycled materials reduce CO2 emissions by 70% and lower costs by 20%, making EV battery production more sustainable. The company is working with Tata Motors' JLR to develop new battery cells using materials from old Jaguar i-Pace EVs.

Germany’s tozero, which secured €17 million from investors including Honda, is developing a pilot plant to recycle graphite, a key battery component responsible for 40% of a lithium-ion battery’s carbon footprint. CEO Sarah Fleischer stated that their hydrometallurgy process can achieve net-zero emissions when powered by renewable energy. The company plans to produce 2,000 tonnes of recycled graphite annually by 2027, supplying material for approximately 50,000 EVs.

These developments mark a significant shift in EV battery sustainability, helping European automakers meet regulatory targets while reducing reliance on China’s supply chain.