CATL and Ellen MacArthur Foundation's Ambitious Vision for Circular Batteries

CATL and Ellen MacArthur Foundation's Circular Battery Ambitions



During the Climate Action Week in London, CATL and the Ellen MacArthur Foundation announced a collective ambition to hasten the transition to a circular economy for batteries. This collaboration represents a significant step toward separating the production of new batteries from the extraction of primary raw materials, thereby ensuring a future that emphasizes access, resilience, and sustainability without being directly tied to resource extraction.

Since forming their strategic partnership earlier this year, both parties have worked to map out how circular economy principles can be integrated across the entire battery value chain. This shared vision serves as a guiding star, inspiring innovation and collaboration as they seek to redesign systems for long-term success. Jiang Li, Vice President and Secretary of CATL, highlighted this ambition during a high-level panel organized by the Ellen MacArthur Foundation, which examined how stakeholders from research, industry, and government can unite to achieve these goals at scale.

CATL has set a target whereby, within the next 20 years, 50% of new battery production will be divorced from primary raw materials. This long-term metric will guide their exploration of circular models, expansion of partnerships, and investment in innovations that are crucial for the entire battery value chain. Jiang Li emphasized that the circular economy will unlock new economic opportunities alongside environmental and social benefits. By 2040, the global battery recycling market is projected to exceed 1.2 trillion RMB (approximately 165 billion USD), creating over 10 million jobs, with significant employment potential in developing countries.

Four Principles to Guide Industry Transformation



At the heart of this ambition are four practical principles derived from the Ellen MacArthur Foundation's circular economy framework, designed to steer transformation across the battery value chain—spanning from extraction and manufacturing to mobility and energy systems. These principles provide a foundation for aligning key stakeholders to devise joint initiatives for accelerating the shift toward a more circular battery economy.

1. Reassessing Systems: A circular approach necessitates systemic change across the entire battery ecosystem. By embedding circularity in every phase of the value chain, it is possible to promote low-carbon development, reduce waste, and facilitate a continuous flow of materials. This principle underscores the need to optimize the structure and interactions of the value chain for more efficient and resilient resource utilization.

2. Redesigning Products: Circularity starts at the design stage. Batteries must be built for longevity, easy disassembly, and second-life applications, featuring modular architectures and durable components. Designing with reuse and recycling in mind helps maintain product value longer and enhances reclamation efficiency after the end of their life cycle.

3. Reevaluating Business Models: Innovative business models are essential to decouple resource utilization from economic growth. By shifting from traditional ownership to service-based or second-life models, batteries can provide greater utility and become more accessible for users. This principle urges the establishment of economically viable pathways for large-scale circular economies.

4. Material Recycling: A high-performing recycling system is critical to achieving circularity. Materials must be effectively reclaimed and reused at high value, boosting the recycling rate within a closed loop. This decreases dependency on primary sources and aids in creating a more sustainable, safer, and less harmful supply of critical raw materials.

Jiang Li shared examples of how CATL has implemented these four pillars. At a system level, CATL has initiated its carbon chain management system aimed at decarbonizing the battery value chain. In product design, CATL has significantly extended battery lifespans—its energy storage solutions now achieve up to 18,000 cycles—reducing the need for materials and emissions.

CATL also plans to deploy over 10,000 battery swapping stations to improve battery efficiency and facilitate mass collection of decommissioned batteries. In the recycling arena, CATL operates the world's largest battery collection network, having recycled approximately 130,000 tons of discarded batteries in 2024 alone, extracting 17,000 tons of lithium salts.

To further test and scale these joint ambitions in real-world conditions, CATL is supporting the Global Energy Circularity Commitment (GECC). This global platform, launched in March, converges industry, municipal, and academia stakeholders to trial practical circular economy solutions. Through this platform, CATL aims to collaborate across the entire value chain to explore and share insights that can help amplify impacts, with this collective approach serving as a cornerstone for building a resilient and sustainable battery system.

Looking Ahead



This collective ambition marks the starting point for fostering new cooperative frameworks, transparency, and systemic innovations within the global battery landscape. CATL and the Ellen MacArthur Foundation will continue to engage with partners from both the public and private sectors to refine, expand, and operationalize these concepts.

"A circular battery system will not emerge from a laboratory or boardroom—it will take shape through collaboration, experimentation, and joint efforts," remarked Jiang Li. "This ambition represents a signal that will propel this work forward. Achieving it will require global cooperation, cross-sector education, and the open engagement of all value chain participants—all of which the Ellen MacArthur Foundation has championed for years."

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