Environmental and industry organizations have jointly appealed to policymakers to strengthen Europe’s battery recycling infrastructure through the Circular Economy Act. The letter, signed by Transport & Environment, Recharge, Clean Tech for Europe, and the European Industrial Ecology Society, highlights the critical need for concrete policy measures to support the scaling of material recovery and recycling operations across the continent.
Europe’s battery recycling sector faces significant structural challenges that threaten its ability to meet growing demand. Currently, more than half of Europe’s battery recycling capacity is considered at risk, and the industry struggles to secure adequate feedstock to operate at optimal levels. While European facilities typically handle the initial preprocessing of battery waste domestically, the majority of black mass—a concentrated material rich in critical raw materials extracted from shredded lithium-ion batteries—is exported abroad for final refining, undermining the region’s strategic autonomy and competitiveness.
Data presented in the letter indicates that at minimum 60 percent of Europe’s black mass leaves the European Union, with experts suggesting the actual figure may be substantially higher when accounting for materials shipped under different customs classifications that escape tracking mechanisms. This material leakage represents a loss of high-value manufacturing jobs to other regions and weakens Europe’s circular economy goals alongside environmental protections.
European battery recyclers face mounting financial pressures and elevated energy costs that complicate investment decisions. The organizations argue that strong policy support and demand signals are essential to encourage the development of refining capacity within the EU, ensuring valuable materials remain within European borders for processing. The signatories contend that the Circular Economy Act represents a critical opportunity to reshape the industry landscape and establish the necessary conditions for sustainable, resilient material recovery at scale.
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