The surge in demand for electric vehicles, renewable energy storage, and portable electronics has cemented lithium’s place as a truly critical mineral. Global consumption of lithium is expected to rise from 390 kilotons in 2020 to around 1,600 kilotons by 2026. Ensuring sustainable access to this resource is more important than ever.
A new research from Edith Cowan University (ECU) highlights a potential game-changer. Tapping into end-of-life batteries as a secondary source of lithium could reduce environmental impacts. It can support a circular economy and secure long-term sustainability in the energy sector.
The Untapped Potential of Used Batteries
The global lithium-ion battery market is projected to expand at a compound annual growth rate of 13%. It will reach $87.5 billion by 2027, notes PhD student Sadia Afrin. Yet despite this booming market, most batteries are far from exhausted when they’re retired.
“Only around 20 per cent of a lithium-ion battery’s capacity is used before it is no longer fit for electric vehicles,” Ms Afrin explains. “That means nearly 80 per cent of the battery’s lithium capacity still remains.”
By 2035, Australia alone could be generating 137,000 tonnes of lithium battery waste annually. Without proper recycling, much of that valuable resource risks being lost to landfill.
Recycling: A Multi-Billion-Dollar Opportunity
First author Asad Ali points out that the recycling industry could be worth between $603 million and $3.1 billion annually in Australia within just over a decade.
“Recycling these batteries doesn’t just give us access to lithium — which is already purified to nearly 99% — but also nickel and cobalt,” he says.
While recycled lithium won’t replace mining as a primary source, the process offers major environmental advantages. Compared with mining, recycling can:
- Reduce carbon emissions by up to 61%
- Use 83% less energy
- Consume 79% less water
- Minimize land disruption, soil contamination, and chemical pollution
Hydrometallurgical recycling, for example, can generate profits of up to $27.70 per kilogram of lithium recovered, with the added benefit that the lithium is already highly purified.
Beyond Mining: A Circular Economy Approach
ECU lecturer and corresponding author Dr Muhammad Azhar emphasizes that even though Australia holds one of the world’s largest hard rock lithium reserves, recycling offers both environmental and socio-economic benefits.
“The mining industry itself is transitioning to electrification, which means it will generate another source of end-of-life batteries,” he explains. “Exploring their second life can provide significant advantages.”
However, Ms Afrin cautions that challenges remain. “The rate of innovation in battery technology often outpaces policy development, and the evolving chemical make-up of batteries complicates recycling. Investment in the right infrastructure will be critical to building a true circular economy.”
Several Australian companies are already exploring innovative recycling methods, but scaling up remains the next big hurdle.
The Bottom Line
As the world accelerates toward a clean energy future, lithium battery recycling isn’t just an option — it’s a necessity. By turning waste into a resource, Australia and other nations can reduce their environmental footprint, secure critical minerals, and strengthen their role in the global energy transition.
