#USA #CATL #EV Batteries #Davos #Ellen MacArthur

CATL and the Ellen MacArthur Foundation Unite for Circular EV Batteries

A significant milestone was achieved during the World Economic Forum Annual Meeting 2026 with the introduction of a groundbreaking whitepaper titled 'Leading The Charge – Turning Risk into Reward with a Circular Economy for EV Batteries and Critical Minerals.' This landmark document was a collaborative effort by CATL (Contemporary Amperex Technology Co., Limited) and the Ellen MacArthur Foundation, representing a pioneering step towards a sustainable circular economy for electric vehicle (EV) batteries.

This whitepaper aims to provide a comprehensive, actionable roadmap for crafting a circular value chain for EV batteries, grounded in real-world industrial practices. It was developed with contributions from over 30 leading organizations across the EV battery ecosystem, including industry giants such as DHL, Volvo, and JLR, in addition to research institutions and non-governmental organizations. This collaboration exemplifies the commitment to foster a system that is not just economically viable but also environmentally sustainable.

The Report's Focus

The whitepaper elucidates the urgent necessity for the EV industry to adapt its practices around battery management. Key recommendations include the design of batteries not only for effective use but also for their recovery and reintegration into the production cycle post-use. This approach enhances both environmental and economic outcomes by aiming to keep batteries and their crucial minerals in circulation rather than allowing them to become waste products.

The document highlights five interdependent actions essential for maintaining battery materials in a high-value use:
1. Designing for Circularity: Batteries should be developed with an end-of-life strategy, ensuring they can be effectively repurposed or recycled.
2. Rethinking Battery Services: Consider optimizing how batteries interact within energy-mobility ecosystems, making their lifecycle management more efficient.
3. Scaling Circular Business Models: Batteries should be considered long-term assets rather than short-term goods.
4. Building Regional Circular Infrastructure: Collaborative investment in local facilities will bolster the recycling and recovery processes.
5. Enabling Circular Operating Systems: Standardized data sharing and policy development will support a cohesive circular economy in battery management.

CATL's Commitment to Action

CATL has been at the forefront of integrating these principles into its operations. By separating the battery from the vehicle, the company treats batteries as centrally managed assets. This innovative strategy enhances battery utilization and enables more predictable maintenance processes, ultimately improving recovery rates at the end of their life.

Currently, CATL operates over 1,000 swap stations for passenger vehicles and more than 300 for commercial vehicles, supported by a network of 100-plus partners. This integration fuels high-quality recovery, boasting impressive recovery rates of 99.6% for nickel, cobalt, and manganese, and 96.5% for lithium, with processing capacity on track to reach a staggering 270,000 tonnes annually.

Additionally, CATL is exploring alternatives such as sodium-ion batteries, which utilize abundant materials and promise to cut lifecycle carbon emissions by up to 60%. This transition significantly enhances circular performance across various sectors, including mobility, energy storage, and battery swapping applications.

Quotes from Key Leaders

During a recent briefing at The Foundation's Leadership event, Jiang Li, CATL's Vice-Chairman and Board Secretary, remarked on the report's importance, stating, “This report marks a major milestone in the global journey towards a circular battery economy.” He emphasized the need for a comprehensive scaling of circular battery systems across diverse regions and applications.

Wen-Yu Weng, Executive Leader for Critical Minerals at the Ellen MacArthur Foundation, reinforced the urgency of these actions. “A circular economy for batteries and critical minerals is essential to drive down costs, enhance resilience, and mitigate environmental impacts,” he asserted, highlighting the integral role of circular approaches in preserving the value of EV batteries and ensuring that materials do not become waste.

The Road Ahead

The introduction of this landmark report signifies the beginning of a broader collaboration between CATL and the Ellen MacArthur Foundation, aiming to boost the circularity of critical minerals on a global scale. The subsequent phase will delve deeper into practical applications, with a focus on assessing how design, usage, life extension, collection, and recycling function cohesively at a larger scale.

As the world accelerates toward widespread EV adoption, these steps will not only facilitate the growth of sustainable practices in battery production but also aid in the larger transition towards renewable energy systems. With a commitment to achieving carbon neutrality across its entire operational value chain by 2035, CATL is setting a benchmark for others to follow in the quest for a truly circular economy.