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Rest of World
China and the West are taking opposite paths on EV battery recycling
China has mandated immediate recycling of electric vehicle (EV) batteries, focusing on metal recovery crucial for its battery production, while the U.S. adopts a strategy emphasizing reuse for grid storage. This divergence highlights the economic implications and national security stakes surrounding the recovery of valuable metals like lithium, nickel, and cobalt. China's robust recycling capacity overshadows the U.S., posing challenges for American EV manufacturing and energy independence.
MonitorConfidence: HighMid term horizonRegulatory risk: High
Published 24 Jun 2026, 10:40 UTC6 min read
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Summary
TL;DR
- China mandates stringent recycling for EV batteries, prioritizing metal recovery.
- The U.S. favors extending battery life through grid storage before recycling.
- China controls over 85% of global battery recycling capacity.
- Growing environmental concerns drive regulation in battery management.
- Metal recovery is viewed as a national security issue for resource scarcity.
Interesting facts
- China's EV battery recycling efforts may lead to reduced dependency on foreign suppliers.
- The U.S. has no national recycling plan, which may hinder its EV market growth.
- China’s recycled battery metals could decrease production costs for new batteries.