EVBatteryRecycling
Blog · Markets & Economics

Why Collection, Not Technology, Limits Recycling

Processing technology is proven at scale.

ML

Marcus Lindqvist

Director of Hydrometallurgy

3 min read Updated 2026-04-30
Circular arrangement of battery cells, recovered metal powders and new cells on a dark table

The short answer

Processing technology is proven at scale. The binding constraint is getting retired packs out of workshops, informal dealers and idle yards and into compliant channels reliably enough to fill plants.

On this page4 sections

Key takeaways

  1. 1Recycling processes for lithium-ion batteries are proven at industrial scale.
  2. 2The harder problem is getting retired batteries out of workshops, yards and informal channels.
  3. 3Dispersed ownership and unclear responsibility slow collection more than distance does.
  4. 4Producer responsibility rules and convenient take-back programmes are what move volumes.
01

The technology is not the bottleneck

Shredding, black mass production and hydrometallurgical refining are all running commercially in several regions. There is room to improve recovery rates, energy use and graphite recovery, but a well-run plant can already recover most of the valuable metals in a cell. When refineries run below capacity, the usual reason is not a technical limit but a shortage of feed.

That shortage has several causes. EVs are lasting longer than early forecasts suggested, many retired packs are reused before they reach recycling, and a large share of end-of-life batteries, especially from two- and three-wheelers, still pass through channels that are hard to see and harder to regulate.

02

Where batteries get stuck

Batteries tend to stall wherever responsibility is unclear. An independent workshop may hold a replaced pack for months because nobody has asked for it. A fleet may store retired packs while it decides whether to sell them. A small dealer may sell to the first buyer who offers cash, without checking whether that buyer is registered.

Each of these delays adds safety risk and erodes value. Packs stored at high state of charge in unventilated rooms are a fire hazard, and informal dismantling can destroy modules that could have been reused. Collection programmes that remove friction for these holders do more for recycling rates than further process improvements.

  • Independent workshops holding replaced packs without a collection route
  • Fleets storing retired packs while deciding on resale
  • Dealers selling to unregistered buyers for cash
  • Owners unaware of their obligations or options
03

What actually moves volumes

Producer responsibility rules, such as India's Battery Waste Management Rules 2022 and the EU Battery Regulation, give manufacturers a legal reason to organise collection. Those obligations work best when paired with practical services: free packaging, scheduled pickups, simple paperwork and clear settlement based on measured value.

Data helps too. Where fleets and manufacturers share expected retirement volumes in advance, collection can be planned rather than reactive, and packs spend less time sitting in storage. In our experience, the programmes that perform best are the ones that make handing over a battery easier than keeping it.

Questions

Frequently asked questions

Are there enough recycling plants?

In many regions, refining capacity has grown faster than collected feed. The shortage is usually batteries reaching plants, not plants to process them.

Why do two- and three-wheeler batteries matter so much?

They are numerous, widely dispersed and often owned by individuals or small operators, which makes them the hardest segment to collect formally.

Turn this into a plan for your packs

Send pack counts, chemistry and approximate state of health. You get an indicative value split, a slotted collection window and pre-filled dangerous goods paperwork.

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