Global Circular Economy Status of Retired Traction Lithium-ion Batteries: Market, Policy, and Technological Gaps and Causes

Abstract

The global shift to electric mobility has heightened the urgency of managing retired traction lithium-ion batteries (LIBs) through circular economy (CE) principles. This study evaluates the CE landscape by analyzing market trends, policy frameworks, and technological advancements across key global regions. Using a SWOT-TOWS framework, we identify persistent economic, regulatory, and technological gaps hindering LIBs circularity. While China leads in large-scale battery recycling, fragmented policies and infrastructure challenges limit adoption elsewhere. Economic disincentives, such as the high cost of recycled materials, further impede progress. Despite breakthroughs in lithium recovery technologies, commercial adoption remains slow. Findings suggest that scaling circular solutions requires coordinated efforts between industry, governments, and academia. We recommend integrating extended producer responsibility, formalizing informal recycling channels, and incentivizing second-life applications to drive a sustainable LIBs industry.