#London #United Kingdom #circular economy #CATL #Ellen MacArthur

CATL and Ellen MacArthur Foundation Unite for Circular Battery Ambitions

In a significant announcement during the London Climate Action Week, Contemporary Amperex Technology Co., Limited (CATL) and the Ellen MacArthur Foundation articulated their vision of accelerating the transition towards a circular economy in the battery industry. This initiative aims to substantially reduce dependence on virgin raw materials in new battery production, fostering an environment where accessibility, resilience, and sustainability coexist harmoniously, allowing economic growth to detach from resource extraction.

Collaborative Foundations

Since establishing their Strategic Alliance earlier this year, CATL and the Ellen MacArthur Foundation have been actively collaborating to implement circular economy principles throughout the battery supply chain. This shared ambition serves not just as a starting point but as a crucial guide for future collaboration and innovation in the industry. They envision a future where not only CATL but a wider community of stakeholders can successfully redesign the battery ecosystem for long-term sustainability.

At a high-level panel organized by the Ellen MacArthur Foundation, Jiang Li, the Vice President and Secretary of CATL’s Board of Directors, presented this ambition. The panel also addressed how stakeholders from research, industry, and government can work together to turn this vision into reality at a large scale.

Future Objectives

To solidify this ambition, CATL has set a directional goal: within 20 years, 50% of new battery production should be independent of virgin raw materials. This long-term indicator will guide the exploration of circular models, collaborations, and investments across the entire supply chain. Jiang Li emphasized that embracing a circular economy will not only generate economic opportunities but will also create environmental and social value. It is estimated that by 2040, the global battery recycling market could exceed 1.2 trillion RMB (approximately 165 billion USD), with the battery supply chain offering over 10 million jobs, predominantly in developing nations.

Guiding Principles for Transformation

Central to this ambition are four practical principles derived from the circular economy framework of the Ellen MacArthur Foundation. These principles aim to revolutionize the battery supply chain from mining and manufacturing to mobility and energy systems. Their objective is to foster greater alignment with key stakeholders and design collaborative actions that accelerate the transition to a more circular battery economy.

1. Rethink Systems: A circular approach demands a systemic change across the entire battery ecosystem. By embedding circularity in each step of the supply chain, it is possible to promote low-carbon development, reduce waste, and enable the continuous flow of materials. This principle emphasizes optimizing the chain of value structure and interactions for a more efficient and resilient resource use.

2. Redesign Products: Circularity starts with the design phase. Batteries need to be built for longevity, allowing for disassembly and reuse, utilizing modular architecture and durable components. Designing with reuse and recycling in mind ensures that products retain their value longer and are reclaimed more efficiently at the end of their lifespan.

3. Reimagine Business Models: New business models are key to decoupling resource use from economic growth. By shifting from traditional ownership to shared, service-based, or reuse models, batteries can provide higher utility and greater accessibility to users. This principle promotes the establishment of viable pathways for the scalability of circular solutions.

4. Recycle Materials: A high-performance recycling system is vital for circularity. Materials must be efficiently recovered and reused for high-value applications, thereby increasing the proportion of closed-loop recycling. This approach diminishes reliance on virgin resources and helps set up a more sustainable, secure, and low-impact supply of critical raw materials.

Examples of Implementation

Jiang Li shared several examples of how CATL is implementing these four pillars. At the systemic level, CATL introduced its Carbon Chain Management System to support the decarbonization of the battery supply chain. In product design, CATL has significantly extended product lifespans (its energy storage batteries now last up to 18,000 cycles), which lowers material demand and emissions. CATL aims to establish over 10,000 battery swap stations, enhancing their efficiency and facilitating the large-scale collection of decommissioned batteries. In recycling, CATL operates the largest battery collection network in the world, recycling about 130,000 tons of end-of-life batteries in 2024, recovering 17,000 tons of lithium salts.

Driving Change Through GECC

To validate and expand this shared ambition practically, CATL is promoting the Global Energy Circularity Commitment (GECC). Launched in March, the GECC serves as an open global platform where industry stakeholders, cities, and academia collaborate to test circular economy solutions in practice. CATL seeks to partner with participants across the value chain through this platform, exploring and sharing insights to maximize impactful outcomes.

Looking Ahead

This shared vision marks the beginning of a foundation for forging new collaborative approaches, transparency, and system-wide innovation within the global battery landscape. CATL and the Ellen MacArthur Foundation will continue to work alongside public and private sector partners to refine, expand, and implement the concepts presented here. Jiang Li stated, "The circular battery system will not be built in a lab or boardroom; it will be molded through collaboration, experimentation, and shared effort. This ambition serves as a call to action for that work." He added that achieving this will require global collaboration, inter-sector learning, and open engagement across the value chain—principles that the Ellen MacArthur Foundation has long championed.