From Vision to Action: GECC Launches Energy Circular Economy Initiatives

On June 22, 2026, during the Climate Innovation Forum held in London, CATL (Contemporary Amperex Technology Co. Ltd.) and the Ellen MacArthur Foundation announced two critical initiatives aimed at promoting a circular economy in the energy sector. Joining them were notable industry leaders including BMW, Renault, Volvo, Google, and Xiaomi, all of whom are keen on integrating sustainability into their business models.

The first initiative comprises the introduction of Circular Battery Design Guidelines, which aim to embed circularity principles throughout the entire lifecycle of batteries. This move is particularly vital as it sets a foundation for establishing standardized protocols across various applications in mobility. As a founding partner, CATL contributes its extensive expertise in battery manufacturing, recycling, and maintenance to help shape these guidelines. These standards will serve as a reference point for investors assessing long-term value and for policymakers developing regulatory frameworks.

The second initiative is the establishment of a business coalition focused on circular business models. This platform is designed to expedite the implementation of these models within the mobility and energy sectors. With battery swapping already operational in over 1,650 stations across 127 cities in China, the coalition aims to shift from merely proving the technical feasibility of circular solutions to creating necessary commercial, regulatory, and financial conditions for international expansion.

Miranda Schnitger, head of climate change at the Ellen MacArthur Foundation, stressed the importance of circular economy approaches in addressing environmental challenges, as they can mitigate about 45% of emissions stemming from production and consumption habits.

In a world where the global battery recycling market is projected to exceed 1.2 trillion RMB by 2040, the implications of these initiatives are significant. The International Energy Agency anticipates a fivefold increase in demand for essential minerals used in batteries during the same period. Meeting this demand sustainably will necessitate not only advanced recycling capabilities but also the establishment of common design standards and business models that prolong the lifespan of materials in productive use.

CATL has already made strides in this direction by becoming the first battery manufacturer to achieve carbon neutrality in its main operations as of 2025, with aspirations to achieve carbon neutrality across its entire value chain by 2035. Most of the remaining challenges lie in raw materials' extraction and processing, underscoring the essential role of circularity in meeting future demands without proportionately increasing the extraction of virgin materials.

Moreover, on the same day, CATL and Octopus Energy unveiled Europe's first battery swapping joint venture. The initiative aims to deploy 300,000 electric trucks and establish 30 swapping centers across Europe by 2035, with the UK centers expected to open in 2027. This partnership showcases the type of commercially viable circular business model the coalition seeks to encourage.

Jiang Li, vice president and board secretary of CATL, pointed out that the battery industry's sustainable growth can be decoupled from the extraction of virgin raw materials. By developing common standards, the industry can seize both climate and industrial opportunities.

Greg Jackson, CEO of Octopus Energy Group, remarked on the potential of designing batteries for multiple exchanges, optimizations, sharing, and reuse. This initiative allows for maximizing the utility of existing materials instead of relying on new extractions.

Initiative 1: Circular Battery Design Guidelines

The Circular Battery Design Guidelines provide a structured framework for creating batteries that align with circular economy principles across diverse mobility applications. This collaborative effort will help mitigate fragmentation in repair, reuse, and recycling approaches, creating a common platform for evaluating circular performance across the market. The Foundation will serve as a neutral platform where companies in the battery value chain can establish shared principles that would otherwise be unattainable for individual organizations. A working group has already commenced, with findings anticipated by 2027.

Initiative 2: Business Coalition for Circular Models

The coalition aims to facilitate the uptake of circular business models within the mobility and energy sectors. As CATL operates battery-as-a-service and battery-swapping networks, it leverages practical insights to support broader global implementation. This coalition will strive to set common methodologies for gauging circular battery assets, encompassing service history, degradation data, and second-life valuation. This will bolster confidence among investors, fleet operators, and policymakers, thereby reducing market uncertainties.

As CATL continues to expand circular practices throughout its operations, the company processes hundreds of thousands of tons of end-of-life batteries while recovering high percentages of crucial materials. Instead of viewing recycling as the endpoint of a product's life, CATL embeds circularity into the design, production, utilization, and recovery phases of its batteries, nurturing a connected system. Additionally, CATL is accelerating the commercialization of sodium-ion batteries, intending to deliver energy storage systems by September., enhancing material supply resilience and cost stability.

Through these initiatives, CATL and its partners are paving the way for a sustainable energy future that emphasizes circularity, innovation, and economic viability. As these guidelines and business models take shape, they may very well revolutionize how industries approach battery technology and sustainability moving forward.