Text and Pictures: Fortum
The demand for batteries and their critical raw materials is rapidly increasing, while the number of batteries reaching the end of their lifecycle is also rising quickly. This means a dramatic growth in hazardous waste. Currently, Europe is highly dependent on imported battery materials, and the handling of battery waste lacks transparency by any measure. Europe needs to increase its domestic production of battery materials and establish a sustainable solution for managing battery waste.
Electrification of transport is impossible without recycling
The EU Battery Regulation (Batt2), which came into force in February 2024, sets the framework for a functional circular economy for batteries. According to the regulation, by 2028, 50% of the copper, nickel, and lithium, as well as 90% of the cobalt used in batteries in the EU, must come from recycled materials.
To achieve these goals, a well-functioning European value chain for recycled materials is needed. European car manufacturers must invest in responsibility and the strengthening of European value chains, despite price pressure from Chinese competitors. The demand for recycled materials must increase significantly; otherwise, the export of valuable raw materials to China may accelerate further, weakening the EU’s self-sufficiency in raw materials.
The current divide between different battery technologies complicates recycling. Europe already has recycling systems for nickel-based batteries, but there is no equivalent infrastructure for lithium iron phosphate (LFP) batteries, commonly used in lower-cost electric vehicles. Recycling LFP batteries is economically less attractive because, apart from lithium, they contain very few valuable materials.
The Battery Regulation is an important step, but not a cure-all
The EU Battery Regulation, with its recycling quotas, accelerates the circular economy but does not solve all challenges alone. The traceability of raw materials will be improved through reporting obligations for manufacturers and the introduction of a digital battery passport from 2027. However, strengthening European battery manufacturing and recycling requires investment in research and development. In addition, permitting processes must be accelerated.
Sustainable electrification of transport is a complex challenge that can only be solved through cooperation. Achieving the objectives of the Battery Regulation critically depends on how well all stakeholders—from raw material extraction to recycling—are integrated into a shared process. Europe must act now to harness the opportunities of the circular economy and establish itself as a global leader in battery recycling.
Recycling is not recycling without a high-quality end product
For us, the recycling loop is only complete when we provide our customers with a high-quality end product. Collection alone is not recycling, and recycling cannot mean simply increasing the amount of waste.
Fortum Battery Recycling is the only operator offering a fully European solution for the entire battery lifecycle, from collection and pre-processing to refining. We currently operate Europe’s largest closed-loop hydrometallurgical battery recycling facility in Harjavalta.
Our efficient, sustainable, and safe process is based on decades of experience in Nordic clean energy production and circular economy solutions.
Our battery recycling solution produces high-quality recycled metals with minimal waste. We already exceed the Battery Regulation’s recycling rate requirements for cobalt, copper, and nickel.
Fortum Battery Recycling
Fortum Battery Recycling is part of Fortum’s business portfolio and specializes in recycling valuable metals from electric vehicle batteries. We provide a fully European solution for the entire battery lifecycle, from collection and pre-processing to refining.
Contact information
Jaakko Savolainen,
Commercial Director, Battery Sales, Fortum Battery Recycling
jaakko.savolainen [at] fortum.com
tel. +358 40 501 4836