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CATL and Ellen MacArthur Foundation Set a New Direction for Circular EV Batteries

In a significant development for the electric vehicle (EV) sector, Contemporary Amperex Technology Co., Limited (CATL) and the Ellen MacArthur Foundation have released an influential report that serves as the foundation for a circular economy model for EV batteries. This initiative, introduced at the World Economic Forum in Davos on January 25, 2026, aims to convert potential risks into rewarding opportunities for both the environment and economy.

The report represents the first comprehensive and practical blueprint designed to establish a closed-loop value chain for EV batteries. Developed in collaboration with over 30 leading organizations in the battery ecosystem—including major players like DHL, Volvo, and Jaguar Land Rover (JLR)—this document is not just theoretical but draws from real-world industry practices.

The motivation behind this collaboration stems from the mutual goal of creating sustainable and efficient practices around battery design, use, recovery, and reintegration. By ensuring that batteries and their critical minerals are kept in circulation for multiple life cycles, the initiative aims to reduce dependency on newly mined materials, limit emissions, and facilitate the integration of renewable energy sources.

Key Highlights of the Report

In outlining a clear path for the future, the report emphasizes five interdependent actions critical for preserving battery materials in high-value usage and enhancing system resilience:

1. Design for Circularity: Instead of focusing solely on disposal, batteries should be designed with the entire lifecycle in mind, ensuring they can be reused and recycled effectively.
2. Reimagine Battery Maintenance: Optimize energy-mobility systems to encourage proactive maintenance and longevity of battery life.
3. Scale Circular Business Models: Treat batteries as long-term assets, allowing businesses to innovate around their lifespan and utility.
4. Invest in Regional Circular Infrastructure: Develop and collaborate on local systems suitable for recycling and repurposing battery materials effectively.
5. Activate Circular Operational Systems: Leverage data, standards, and policies to support efficient recycling and recovery operations.

CATL’s Implementation of Circular Principles

CATL has already begun implementing these strategies at a systemic level. By decoupling the battery from the vehicle, CATL manages batteries as central assets, enhancing their utilization and ensuring scheduled maintenance. Currently, the company oversees more than 1,000 passenger vehicles and operates over 300 commercial vehicle swap stations, supported by a growing ecosystem of more than 100 partners.

This systemic integration guarantees high-quality recovery on a large scale. For instance, CATL boasts a recovery rate of 99.6% for nickel, cobalt, and manganese, alongside 96.5% for lithium, with recycling capacities reaching 270,000 tons annually.

Additionally, CATL is exploring alternative battery chemistries, such as sodium-ion cells, using readily available materials and significantly reducing lifecycle carbon emissions by up to 60%. This further enhances circular productivity in mobility applications, storage, and replacement.

A Call for Scalability and Collaboration

At the briefing led by CATL, Jiang Li, the Vice Chairman and Secretary of the Board, remarked, “This report signals a crucial milestone in the global transition to a circular battery economy. It’s essential that circular battery systems are scaled regionally, across industries, and applications—from EVs to energy storage—and adapted to varying market conditions.”

“The adoption of circular economies for batteries and critical minerals is no longer optional,” emphasized Wen-Yu Weng, the Executive Leader for Critical Minerals at the Ellen MacArthur Foundation. “It is essential for sustainability, resilience, and long-term growth while simultaneously minimizing ecological and social impacts. Batteries are strategic assets, and circular approaches are vital for maintaining their value.”

This report marks an early achievement in the broader collaboration between CATL and the Ellen MacArthur Foundation, propelling the circular economy for critical minerals. Future phases will focus on stress-testing these approaches in real-world conditions to understand how the various lifecycle aspects interplay at scale.

In conclusion, the combined efforts of CATL and the Ellen MacArthur Foundation not only redefine the future of battery technology but also set a benchmark for sustainable practices across the automobile industry. As the partnership evolves, it heralds a new era of circularity that promises to reshape energy sources and their impact on the environment.