Newsletter March ‘25

These 47 projects – spanning 13 EU countries – aim to boost local production and refining of battery metals like lithium, nickel, cobalt, and graphite. Notably, about ten projects focus on battery recycling, reflecting Europe’s goal to source 25% of its critical minerals from recycling by 2030. One project recognized was Fortum’s new hydrometallurgical battery recycling facility in Finland, which in March was designated a Strategic Project for its contribution to European lithium-ion recycling capacity. By supporting mining, processing, and recycling initiatives, the EU seeks to reduce reliance on imports (especially from China) and prevent supply chain bottlenecks. These efforts come as geopolitical events have highlighted risks of over-dependence on single sources for critical materials.

Regulatory Timeline: European battery-makers are also watching the calendar for new sustainability rules. Under the EU Battery Regulation (effective 2023), companies must implement rigorous due diligence for sourcing by August 2025. Many had expected detailed EU guidelines on how to perform supply chain audits and reporting this spring. However, publication of the guidance was delayed in March amid internal regulatory processes. This postponement leaves firms without official clarity for now, though most are moving ahead with establishing traceability systems. The Battery Regulation’s other requirements loom as well: carbon footprint disclosures for EV batteries, recycled content quotas in the future, and battery passports by 2027. In the meantime, industry groups are filling the gap – for example, the Global Battery Alliance’s “Greenhouse Gas Rulebook” provides standardized methods to calculate battery CO₂ footprints, and the German-led “Battery Pass” consortium (which concluded recently) has prototyped digital passports. The policy momentum on both sides of the Atlantic (including U.S. tax credit rules favoring responsibly sourced minerals) continues to push the supply chain toward greater transparency and sustainability.

Partnerships and Supply Chain Shifts

Umicore Diversifies Supply: March saw notable moves among battery materials companies. Belgium’s Umicore, for instance, unveiled new supply agreements to support its cathode material production. It will source precursor cathode active material (pCAM) from two partners: CNGR’s joint venture in Morocco and Korea’s Eco&Dream (E&D). Both partners have just opened state-of-the-art plants (in Jorf Lasfar, Morocco and Saemangeum, South Korea respectively) with a focus on low-carbon, high-purity output. Starting in 2026, Umicore will begin tapping these sources to feed its battery material factories in Europe, North America, and Asia. This strategy reduces dependence on any single region by leveraging a more global supply base for critical battery ingredients. It also underscores the importance of responsible production: Umicore noted the new suppliers meet elevated environmental standards and will help reduce the embedded CO₂ in its cathode products. As EV production scales up, such international partnerships for minerals and intermediates are becoming the norm – linking mines, chemical processors, and manufacturers across continents.

Automakers and Battery Makers: Across the broader industry, companies continued adjusting their battery supply chain plans. Some joint ventures progressed while others paused due to market conditions. For example, in the U.S., a Toyota-led battery plant (in NC) is on track (with production from April, as noted last month). But in a contrasting development, one high-profile project faltered: a consortium led by LG Energy Solution withdrew from a planned $7.7 billion battery manufacturing project in Indonesia in March, citing feasibility concerns. This decision came as EV demand projections have been revised in some markets, leading firms to be cautious about over-expansion. Similarly, startups have refocused their strategies – Britishvolt’s collapse last year and other setbacks remind stakeholders that building a robust battery supply chain is complex. On a positive note, global battery deployment keeps rising. A report from SNE Research highlighted that worldwide EV battery usage in Jan–Feb 2025 was about 130 GWh, a 40% jump from the same period a year prior. Six of the top ten cell suppliers were Chinese firms, with CATL alone accounting for 38% of worldwide battery installations. This underlines the continued dominance of Asian players even as Western countries invest heavily in domestic capacity. Major carmakers like Mercedes-Benz and Volkswagen are therefore maintaining partnerships with these leading cell producers (for instance, CATL’s new Hungary plant will supply European OEMs). At the same time, they are supporting local battery startups and JVs to balance their supply sources. The overall trend in March was one of recalibration: companies are aligning their battery strategies with realistic demand forecasts, policy incentives, and the imperative to secure raw materials sustainably.

Circular Economy and Recycling Progress

Recycling on the Agenda: As more EVs reach end-of-life, March brought further attention to battery recycling initiatives. Policymakers in Europe emphasized the role of recycling in meeting material demand – as seen with the CRMA strategic projects. Industry players also reported growth in recycling throughput. For instance, Canadian recycler Li-Cycle (despite its financial woes) announced it had recycled the equivalent of over 100 MWh of lithium-ion batteries from energy storage systems in 2024, a 33% increase from the prior year. Startups and incumbents alike are ramping up capacity: Norway’s HydroVolt and Sweden’s Northvolt, for example, are scaling facilities to recover metals from used batteries. In Asia, Chinese recyclers are processing huge volumes of EV batteries, spurred by government mandates. And in the US, Redwood Materials and Ascend Elements are both expanding operations to supply recycled copper foil, lithium, and nickel back into new cells. These efforts align with new regulatory requirements (the EU will mandate minimum levels of recycled content in batteries by 2030). They also offer a climate benefit: studies show recycled metals have a far lower carbon footprint than mined ones. In short, March continued the momentum toward a circular battery economy, with collaborations forming across the value chain – from automakers sending manufacturing scrap to recyclers, to chemical companies like BASF developing refining techniques to turn black mass into battery-grade salts. While challenges remain (e.g. efficiently recycling LFP batteries or solid-state cells in the future), the overall trajectory is clear: recycling is shifting from a niche option to a core pillar of the battery supply chain.

Sources Consulted:

Reuters (2025/03/25), Indian Chemical News (2025/03), Compliance & Risks (2025/03), Umicore Press Release (2025/03), CNEVPost (2025/04/08), Bloomberg (2025/03/20), Stanford News (2023/01/04)