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CATL and Ellen MacArthur Foundation's Joint Initiative

In a groundbreaking whitepaper titled "Leading The Charge - Turning Risk into Reward with a Circular Economy for EV Batteries and Critical Minerals," released during the annual meeting of the World Economic Forum in Davos in 2026, CATL and the Ellen MacArthur Foundation set a strategic direction for the development of electric vehicle (EV) batteries within a circular economy framework. This document stands as the first comprehensive practical action plan aimed at enhancing circularity in the EV battery value chain, hinging on real-world industrial practices.

Objectives and Industry Collaboration

The report was developed with contributions from over 30 leading organizations within the EV battery ecosystem, including prominent names like CATL, DHL, Volvo, and JLR, along with research institutions and NGOs. It lays out an expert-driven roadmap for the design, use, recovery, and repurposing of EV batteries, targeting maximized value retention and minimized systemic risk across the entire value chain. As a foundational strategic partner of the Ellen MacArthur Foundation's critical minerals mission, CATL has collaborated closely with the Foundation and other industry players to translate circular economy principles into actionable measures based on operational experiences.

The action plan is closely aligned with CATL's global commitment to circular energy sources, including a long-term goal to decouple battery production growth from primary resource extraction. It highlights the myriad opportunities that a circular-based battery system can unlock for the environment, economy, product efficiency, and broader value creation. By emphasizing the reuse of batteries and the recovery of their key minerals across multiple life cycles, this strategy significantly reduces the need for newly mined materials, lowers emissions, and promotes renewable energy integration. Additionally, it enhances economic value through improved material efficiency, waste reduction, lower operational costs, and the creation of new revenue streams.

Key Areas of Development

The whitepaper identifies five interconnected actions essential to maintaining high battery material value and enhancing systems resilience:
1. Design batteries for a circular economy rather than disposal.
2. Implement new servicing approaches for batteries within optimized energy-mobility systems.
3. Scale circular economy business models, treating batteries as long-term assets.
4. Develop regional circular economy infrastructure and co-invest in it.
5. Establish an operational framework based on data, standards, and policies.

CATL's Practical Implementation

CATL is already implementing these measures systemically across its operations. By decoupling batteries from vehicles, CATL manages battery resources centrally, increasing their utilization and allowing for planned maintenance, while also ensuring predictable returns at the end of their life cycle. At present, CATL operates over 1,000 battery swapping stations for passenger vehicles and more than 300 for commercial vehicles, supported by a growing ecosystem of over 100 partners. This systemic integration enables high-quality large-scale recovery, achieving recovery rates of 99.6% for nickel, cobalt, and manganese, and 96.5% for lithium, with a processing capacity escalating to 270,000 tons per year.

In addition, CATL is exploring alternative chemical solutions like sodium-ion batteries, which utilize more abundant materials to significantly reduce lifecycle carbon emissions by up to 60%. This advancement bolsters the effectiveness of circular economy applications in mobility, swapping, and energy storage solutions.

Shared Scaling and Future Vision

At a briefing by the Foundation focused on leadership practices within CATL, Jiang Li, Vice President and Secretary of the Board at CATL, underscored the report as a pivotal milestone in the global pursuit of a circular economy for batteries. “We now need to scale circular battery systems across various regions, industries, and applications—from electric vehicles to energy storage—and tailor them to different market conditions,” said Li.

“With the acceleration of EV adoption, the circular economy for batteries and critical minerals is no longer optional; it is vital for affordability, resilience, and long-term growth, all while allowing us to mitigate environmental and societal impact,” stated Wen-Yu Weng, Executive Director for Critical Minerals at the Ellen MacArthur Foundation. He added, “EV batteries are strategic assets, and a circular approach is fundamental in preserving their value to ensure that critical minerals never become waste.”

These initiatives are in line with CATL's strategy for carbon neutrality, aiming for carbon neutrality across all battery manufacturing sites and the entire value chain by 2035. The release of this report marks the first milestone in a broader collaboration between CATL and the Foundation to accelerate the circular economy of key minerals. The next phase will focus on testing these approaches in real-world conditions to understand how design, usage, lifespan extension, collection, and recycling can work together on a large scale.