CATL and Ellen MacArthur Foundation Unite for Circular Battery Initiative

Advancing Towards a Circular Battery Economy



In a significant announcement made during the London Climate Action Week, Contemporary Amperex Technology Co., Limited (CATL) and the Ellen MacArthur Foundation declared their shared vision to promote a circular battery economy. This initiative highlights a commitment to decouple battery production from the use of virgin raw materials, which holds the potential to enhance sustainability and resilience in the global battery supply chain.

The Vision of a Circular Battery System


The collaboration, which began with a strategic partnership earlier this year, aims to outline how circular economy principles can be effectively integrated into the battery manufacturing and recycling processes. Jiang Li, the Vice President and Board Secretary of CATL, introduced this vision at a high-level panel hosted by the Ellen MacArthur Foundation. He emphasized that a circular battery system should not only prioritize environmental benefits but also create economic opportunities, fostering resilience and access for communities worldwide.

Under this collaborative framework, CATL envisions achieving a goal within the next two decades, where 50% of new battery production would rely on recycled materials rather than virgin extraction. This ambitious target serves as a guiding star for innovation and collaboration across various stakeholders in the industry, from research and academia to governmental entities.

Economic and Social Impacts of Circularity


The potential benefits of transitioning to a circular battery economy are immense. By 2040, the global market for battery recycling is projected to surpass RMB 1.2 trillion (approximately 165 billion USD), creating over 10 million jobs, with more than half likely situated in developing countries. This transition not only aims to mitigate environmental impact but also seeks to stimulate job creation and economic growth in regions often marginalized in global supply chains.

Four Guiding Principles for Industry Transformation


At the core of this initiative are four foundational principles taken from the Ellen MacArthur Foundation’s circular economy framework:

1. Rethink Systems: Emphasizing the need for systemic change within the battery ecosystem, this principle encourages embedding circularity throughout each stage of the value chain. This could lead to enhanced resource efficiency, reduction of waste, and low-carbon development.

2. Redesign Products: The shift towards circularity starts at the design phase. It is crucial that batteries are engineered for longevity, ease of disassembly, and second-life applications. This approach will ensure that batteries have a longer lifecycle and can be effectively recovered after they are no longer in use.

3. Rethink Business Models: There is a need for novel business models that can decouple growth from resource consumption. Moving from traditional ownership to service-oriented or shared models could make batteries more accessible and promote sustainable use.

4. Recycle Materials: Establishing a robust recycling system is vital for achieving circularity. Efficient recovery and high-value reuse of materials will reduce reliance on virgin resources and cultivate a more sustainable supply chain for essential raw materials.

CATL's Commitment to Circularity


Jiang Li presented some innovative practices already being undertaken by CATL to demonstrate its commitment. For example, the company has launched a pioneering Carbon Chain Management System that contributes to decarbonizing the battery value chain. Additionally, CATL has significantly increased the longevity of its energy storage batteries, achieving lifespans of up to 18,000 cycles. This improvement not only diminishes the demand for materials but also results in lower emissions.

Furthermore, CATL plans to establish over 10,000 battery swap stations which will facilitate better efficiency and promote large-scale collection of retired batteries. In terms of recycling efforts, CATL operates the world’s largest battery take-back network and effectively recycled approximately 130,000 tons of end-of-life batteries in 2024, managing to recover around 17,000 tons of lithium salts in the process.

Piloting Real Change with GECC


To further advance this collaborative ambition, CATL introduced the Global Energy Circularity Commitment (GECC) — a global open platform initiated in March. This initiative aims to foster collaboration among various stakeholders, including industry players, cities, and academia, to explore practical circular economy solutions. The GECC seeks to create an environment for testing ideas and sharing insights, while aiming to catalyze scalable impact across the battery value chain.

Looking Forward


The commitment from CATL and the Ellen MacArthur Foundation to work together presents an opportunity to build a more sustainable and innovative framework within the global battery landscape. Jiang Li highlighted the importance of collaboration in creating a circular battery system, stressing that substantial progress will emerge not just from boardrooms and laboratories, but from collective efforts and experimentation across multiple sectors. Together, they aim to engage in public-private partnerships that further refine and operationalize these ambitious ideas, paving the way for a greener, more sustainable future.

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