#London #United Kingdom #circular economy #CATL #Ellen MacArthur

CATL and Ellen MacArthur Foundation Collaborate for Circular Batteries

During the recent London Climate Action Week, CATL (Contemporary Amperex Technology Co., Limited) and the Ellen MacArthur Foundation unveiled their shared vision to expedite the transition towards a circular battery ecosystem. This partnership signifies a substantial leap in global aspirations to redefine battery production, emphasizing sustainability and reducing reliance on primary materials.

The collaborative effort, marking a crucial advancement since establishing their strategic partnership earlier this year, aims to apply the principles of circular economy across the entire battery value chain. By moving away from traditional mining and material sourcing, CATL and the Ellen MacArthur Foundation envision a future where resilience and eco-friendliness flourish together, paving the way for a battery industry not constrained by resource extraction.

The Vision Presented by Jiang Li

In a significant presentation at the Ellen MacArthur Foundation panel, Jiang Li, CATL’s Vice President and Board Secretary, articulated the ambitious goals of this initiative. He laid out a proposal for CATL to achieve a point where half of its new battery production will not rely on primary resources within a 20-year timeframe. This long-term target aims to redefine research and investment in circular models, expanding partnerships and innovative practices across the industry.

Jiang Li highlighted the potential of a circular economy to generate new business opportunities alongside enhanced environmental and social values. By 2040, the global battery recycling market is projected to exceed 1.2 trillion RMB (approximately 165 billion USD), with the battery value chain capable of creating over 10 million jobs, particularly in developing nations.

Four Principles Driving the Transition

The foundation of this ambition rests upon four actionable principles derived from the Ellen MacArthur Foundation’s framework for the circular economy. These principles guide the transformation of the battery industry from mining and production through to mobility and energy systems. They serve as a foundational guide for engaging with key stakeholders to craft collective action plans and expedite the transition to a circular battery industry:

1. Re-evaluating Systems: A circular approach necessitates systemic changes throughout the battery ecosystem. By incorporating circular practices at every stage of the value chain, it becomes possible to support low-carbon development, reduce waste, and ensure a continual flow of materials. This principle stresses the need for optimizing the structure and interactions of the value chain for more efficient resource utilization.

2. Redesigning Products: The circular approach should commence at the design phase. Batteries must be constructed for longevity, ease of disassembly, and end-of-life reuse. Implementing modular architectures and durable components ensures that products retain value longer and can be repurposed more effectively when they reach the end of their life cycles.

3. Reassessing Business Models: New business models are essential for decoupling economic growth from resource consumption. Transitioning from traditional ownership to shared service-based or reuse models can enhance battery utility and accessibility for users. This principle supports the development of economically viable paths for large-scale circular economy practices.

4. Material Recycling: Effective high-performance recycling systems are crucial for a circular battery model. It’s important to efficiently utilize materials and return them to valuable use, thereby increasing recycling rates within a closed loop. This strategy reduces dependence on primary sources, resulting in more sustainable, secure, and less resource-intensive supplies of critical materials.

CATL has already begun implementing these four pillars within its operations. For instance, the company has initiated a carbon chain management system aimed at decarbonizing the battery value chain. By significantly extending the lifespan of their energy storage batteries to 18,000 cycles, CATL is decreasing material demands and emissions. Additionally, plans are underway to deploy over 10,000 battery-swapping stations to improve battery efficiency while facilitating the collection of outdated batteries. CATL also operates the world's largest battery recycling network, having recycled approximately 130,000 tons of discarded batteries in 2024, recovering around 17,000 tons of lithium salts.

Supporting the Global Energy Circularity Commitment (GECC)

CATL is further championing the Global Energy Circularity Commitment (GECC), launched in March, which brings together industry, municipal, and academic stakeholders to test circular economy solutions in practice. Through the GECC, CATL aims to explore and share insights across the value chain, enhancing the impact of these innovations collaboratively.

The future of the battery industry hinges on the shared ambitions fostered by this partnership. CATL and the Ellen MacArthur Foundation are committed to continuing their collaboration with public and private partners to refine, scale, and execute the initiatives outlined.

“Circular battery systems will not emerge from labs or boardrooms but will originate from collaboration and shared efforts,” Jiang Li stated. This ambition signals a commitment to accelerate progress, necessitating global cooperation, cross-sector learning, and open partnerships across the entire value chain, goals that the Ellen MacArthur Foundation has long supported.