# Powering Smarter Battery Recycling With Digitalization Sustain the electric vehicle boom by scaling up cost-effective and durable battery recycling with virtual twin technology on a unified platform. ## (Marketing Insights - Battery)Scaling Up Sustainable Battery Recycling for the Electric Vehicle Boom By 2030, at least 1.2 million tons(1) of lithium-ion batteries will reach end-of-life. Are your **battery recycling** capabilities primed to extract the most out of these spent packs? The International Energy Agency predicts that more than 145 million(2) **electric vehicles** (EVs) will hit the roads by 2030. Not only that, OEMs are pressured to deliver EVs with a lower carbon footprint by 2050. However, as the challenge of [sustainable EVs](https://www.3ds.com/sustainability/decarbonization/decarbonize-automotive-manufacturing-electrification "sustainable EVs") grows, so does the pile of spent **lithium batteries** that once powered those cars. Faced with the shortage and price increase of the components, OEMs and **battery manufacturers** are boosting their recycling process to recover materials from the returned packs to build new batteries. ## Improve the Way You Recover and Recycle Ready to tame the complexity of battery recycling? Discover how virtual twin technology on a unified platform can help you extract valuable materials safely while lowering the carbon footprint. [(Banner SAO09 Ebook gated asset)](/media/5757) [ Download the Ebook ](/brick/24899) ## (Market insights - suite)Challenges of the Rapidly Expanding Global Battery Market The global battery market is rapidly expanding. Indeed, the **lithium-ion battery** demand is expected to grow by about 27% annually between 2022 and 2030(3). But challenges remain: 600 ## Digitalize Towards a Low-Carbon Future When equipped with the right digital capabilities, companies can **safely recycle batteries** while conserving valuable materials and avoiding waste — from the transportation of spent batteries and disassembly of harmful components to the production of new packs. The bottom line? **Virtual twin technology** can help optimize how batteries are reused, remanufactured and recycled while minimizing the environmental footprint. In a **digitalized battery value chain**, companies can: ## Optimize end-of-life ### Optimize end-of-life A spent EV pack holds about 70 to 80% charge and can be reused to power streetlights or even **energy storage** systems (ESS). This type of reuse can extend **battery life** for up to 10 years. But to determine its viability for a second life, companies need to accurately assess the battery’s state of health. By leveraging the virtual twin on a unified platform, companies can gain full traceability to monitor their battery usage and predict which pack will reach end-of-life first. [(Optimize end of life)](/media/5759) ## Redefine processes ### Redefine processes It costs more to recycle batteries than to mine more lithium to make new ones. Since large-scale, cheap ways to recycle batteries are lagging, only about 5% are recycled globally, meaning the majority end up as waste. With virtual twin technology, companies can simulate the **disassembly and recycling processes** based on battery types, technologies, designs and chemistries — and recover materials with the highest quality and the least resources. [(redefine processes)](/media/5760) ## Strengthen circularity ### Strengthen circularity A circular economy for **lithium batteries** ensures responsible hazardous waste disposal through better collection methods and reduces dependency on traditional raw material supply chains. By optimizing the lifecycle through the virtual twin on a unified platform, OEMs and **battery manufacturers** can close the loop from end-of-life to the supply of raw materials. [(Strenghten circularity)](/media/5761) It’s essential to take the entire **battery value chain** into account. By bringing together multidisciplinary teams to infuse desired outcomes from the beginning, the **3D**EXPERIENCE platform enables OEMs, **battery manufacturers and recyclers** to look at how they can do things differently while meeting sustainability and compliance objectives. Lithium-ion batteries are ubiquitous in everyday life. It’s time to unpack the challenges and opportunities in battery recycling and power the industry towards a **circular economy**. --- 1 Source: "Lithium batteries – 1.2m tons ready for recycling by 2030” by [PV Magazine](https://www.pv-magazine.com/2019/11/04/lithium-batteries-1-2m-tons-ready-for-recycling-by-2030/ "PV magazine") (November, 2019) 2 Source: "Global EV Outlook 2024” by [IEA](https://www.iea.org/reports/global-ev-outlook-2021/prospects-for-electric-vehicle-deployment "IEA") 3 Source: [McKinsey Battery Insights Demand Model](https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/battery-2030-resilient-sustainable-and-circular), 2022 ## FAQ About Recycle Batteries & Lithium Battery Recycling ## Why is battery recycling becoming more critical as EV adoption accelerates? Battery recycling is becoming critical because the rapid growth of electric vehicles is creating an unprecedented surge in end-of-life lithium-ion batteries. The International Energy Agency projects more than 145 million EVs on roads by 2030, and by that same year, at least 1.2 million tons of lithium-ion batteries will reach end-of-life—far outpacing current recycling infrastructure. The stakes go beyond volume. Critical raw materials like lithium, cobalt and nickel are finite, geographically concentrated and energy-intensive to mine. Recycling spent batteries is the most direct path to securing a domestic supply of these materials while reducing environmental impacts, carbon emissions, regulatory risk and supply chain vulnerability. [Learn more about the circular economy for batteries](/sustainability/circular-economy "Circular Economy") ## What role does the circular economy play in reducing the carbon footprint of battery production? The circular economy directly reduces battery production's carbon footprint by replacing virgin raw material extraction—one of the most carbon-intensive steps in the battery supply chain—with verified recycled inputs. Primary lithium extraction, for example, carries a significantly higher carbon intensity than lithium recovered through closed-loop hydrometallurgical recycling. The carbon reduction pathway works across three stages: - **Material sourcing**: Recycled lithium, cobalt and nickel require less energy to process than mined equivalents - **Manufacturing**: Using pre-characterized recycled inputs reduces energy spent on quality validation and refinement - **End-of-life**: Structured disassembly enabled by DPP data minimizes the energy cost of material recovery For organizations tracking Scope 3 emissions, shifting to a circular approach and circular material flows isn't just an environmental priority: it's a measurable contribution to supply chain resilience and decarbonization targets. [Explore eco-design and life cycle assessment tools](/sustainability/circular-economy/eco-design/lifecycle-assessment "Life Cycle Assessment: Do more than measure your environmental impact") ## What are the most strategically important critical materials in lithium-ion battery recycling? Lithium, cobalt and nickel are the three critical materials that make lithium-ion battery recycling strategically significant for any organization in the EV or energy storage value chain. These critical minerals are geographically concentrated, energy-intensive to mine and subject to significant price volatility making recovered secondary supply a meaningful risk management lever. The strategic case for recovering each material: - **Lithium**: Primary deposits are concentrated in South America's Lithium Triangle, creating geopolitical supply risk; recovered lithium carries approximately four times lower carbon emissions than mined equivalents - **Cobalt**: Over 70% of global cobalt supply originates from the Democratic Republic of Congo, making recycled cobalt a supply chain resilience priority for OEMs with ethical sourcing commitments - **Nickel**: High-nickel cathode chemistries (NMC 811, NCA) increase energy density but also increase the economic and environmental value of recovery For organizations with sustainability KPIs tied to Scope 3 emissions, securing recycled material inputs is one of the most direct ways to reduce the carbon intensity of manufactured battery cells and improve supply chain resilience. [Learn more about managing critical materials across the value network](/sustainability/critical-materials-value-network "Unify Both Macro and Micro Views of the Critical Materials Lifecycle"). ## What is a Digital Product Passport and how does it apply to batteries? A Digital Product Passport (DPP) is an EU regulatory framework that assigns every product a digital identity containing verified lifecycle data—from raw material sourcing through to end-of-life recycling. For batteries, this takes the form of a battery passport: a mandatory digital record that captures material composition, carbon footprint, performance history and recyclability for EV, industrial and light transport batteries. Starting in 2027, battery passports will be required for any manufacturer or company entering the EU market. Unlike a general DPP, a battery passport addresses the specific challenges of the battery industry—enabling second-life assessments, optimizing recycling workflows and demonstrating compliance with EU battery regulations. - **EV batteries**: [Full lifecycle traceability](/sustainability/traceability-circularity "Traceability for Circularity") from cell chemistry to end-of-life routing - **Industrial batteries (above 2 kWh)**: Performance data to support reuse or remanufacturing decisions - **Light transport batteries**: Recyclability data for e-bikes, scooters and similar vehicles [Explore the Digital Product Passport framework](/sustainability/circular-economy/digital-product-passport/battery-passport "Battery Passport: The Future of Battery Transparency") ## How does circular battery design reduce carbon footprint across the lifecycle? Circular battery design reduces carbon footprint by embedding recyclability, material efficiency and durability into engineering decisions from the earliest design stage—rather than treating end-of-life as an afterthought. Recycled battery materials produce approximately four times lower carbon emissions than newly mined equivalents, translating to more than 25% lower carbon emissions per kilowatt-hour of battery cell capacity produced. Achieving this requires life cycle assessment (LCA) tools that can quantify the environmental impact of each material and design choice before production begins. When engineering teams can model how a battery's composition affects its total carbon footprint across manufacture, use and recycling, they make decisions that are both sustainable and commercially defensible. Key design levers include: - **Material selection**: Prioritizing recycled or lower-impact inputs based on verified LCA data - **Cell chemistry choices**: Evaluating trade-offs between energy density, longevity and recyclability - **Durability by design**: Extending battery life reduces the frequency of end-of-life events and the associated carbon cost of replacement [Discover accelerated battery innovation](/industries/transportation-mobility/accelerated-battery-innovation "Why the EV Revolution Requires Battery Evolution") ## How life cycle assessment improve the way organizations recycle batteries without slowing time-to-market? - Eco-design and [LCA solutions](/sustainability/circular-economy/eco-design/lifecycle-assessment "Life Cycle Assessment: Do more than measure your environmental impact") improve battery recyclability without slowing time-to-market by integrating sustainability analysis directly into the engineering workflow—so teams don't evaluate environmental impact separately from product development. This parallel approach eliminates the rework and delay that come from discovering recyclability issues late in the design cycle. - Dassault Systèmes' **3D**EXPERIENCE platform supports this by connecting eco-design tools, LCA data and virtual twin simulations in a single environment. Engineering teams can assess the carbon footprint and recyclability of design alternatives in real time, comparing material choices and structural configurations before any physical prototype is built. - The business impact is measurable: - **Fewer design iterations**: Sustainability criteria are applied early, reducing costly late-stage changes - **Faster regulatory alignment**: Battery passport data requirements are built into the design process rather than compiled after the fact - **Shorter time to compliance**: Teams enter the EU market ready, not reactive ## How are virtual twins helping scale cost-effective battery recycling operations? Dassault Systèmes' virtual twin technology helps scale battery recycling by creating a live digital replica of each battery—one that captures its composition, state of health, usage history and material streams—so recyclers can plan and simulate disassembly and recovery processes before touching a physical pack. This eliminates the costly trial-and-error that makes scaling recycling operations economically difficult. On the **3D**EXPERIENCE platform, battery recycling companies access battery passport data shared across the value chain, giving them precise knowledge of material composition and potential contaminants for every incoming battery. This information directly informs safer, higher-yield recycling decisions and fosters innovation. Specific operational advantages include: - **Simulated disassembly workflows**: Testing process sequences virtually to identify the most efficient and safe approach for each battery type - **Predictive end-of-life routing**: Using state-of-health data to determine whether a battery qualifies for second-life reuse or immediate recycling - **Material recovery optimization**: Modeling recovery yields for lithium, cobalt and nickel to maximize economic return per pack [Learn more about virtual twin technology for battery recycling](/sustainability/circular-economy/digital-product-passport/battery-passport "Battery Passport: The Future of Battery Transparency") ## How does a battery passport support regulatory compliance and end-to-end traceability? A [battery passport](/sustainability/circular-economy/digital-product-passport/battery-passport "Battery Passport: The Future of Battery Transparency") supports compliance and traceability by acting as a single, verified source of truth for every battery's lifecycle data—from raw material sourcing and manufacturing through to performance monitoring and end-of-life recycling. This structure directly meets the EU battery regulation requirements taking effect in 2027, which mandate full traceability for EV batteries, industrial batteries above 2 kWh and light transport batteries. For engineering and sustainability leaders, the battery passport transforms compliance from a documentation exercise into an operational capability. When integrated with Dassault Systèmes' **3D**EXPERIENCE platform and virtual twin technology, passport data becomes live and actionable—not just a record, but a tool for continuous improvement across the value chain. [Traceability](/sustainability/traceability-circularity "Traceability for Circularity") capabilities enabled by a battery passport include: - **Raw material provenance**: Verifying the origin and ethical sourcing of lithium, cobalt and nickel - **Carbon footprint validation**: Providing auditable emissions data for each production stage - **Second-life eligibility assessment**: Using state-of-health data to determine reuse potential before end-of-life routing - **Recycling coordination**: Sharing standardized composition data with recyclers to improve ## (Related content)Related Content ## Made to Last With Better Waste Reduction Learn how companies can circulate products by optimizing waste reduction with virtual twin technology in order to move towards a circular economy. [Learn more about Waste Reduction](/sustainability/circular-economy/better-waste-reduction) ## Digital Product Passport (DPP) The Digital Product Passport enables a system in which every product provides a comprehensive record of its journey, from origin to recycling, supporting the circular economy. [Discover the Digital Product Passport](/sustainability/circular-economy/digital-product-passport) ## The Next Gear in Battery Development Tomorrow’s electric vehicles demand a revolution in battery innovation – lighter, more powerful, and more sustainable, delivered at unprecedented scale. [Read more on Battery Evolution](/industries/transportation-mobility/accelerated-battery-innovation) ## Circular Economy How circular economy practices can help your business dare to be bold through new business models that preserve the environment for future generations. [Read more about Circular Economy](/sustainability/circular-economy) ## Improve the Way You Recover and Recycle [Download](/brick/24899) ![SAO9 Circular Economy > Dassault Systèmes](https://www.3ds.com/assets/invest/2022-09/sao9-smarter-battery-recycling-herobanner.jpg) [ Watch the video 49 seconds ](https://youtu.be/znSV-leNwkI) [Hero\_banner\_Smarter\_Battery\_Recycling](/media/5756) Smarter Battery Recycling