Executive Summary – Sustainability of batteries

Some may consider sustainability as another wording for environmental development, while others also consider the economic and social impacts. However, regarding batteries, it is important to consider all aspects of sustainability, as battery technology is a key cornerstone in the green transition towards a fossil-free society by replacing products, appliances, and transport means that requires fossil fuels.
It is important to consider all aspects of sustainability, which is in line with the Sustainable Development Goals (SDGs) that aims to: "ensure all human beings can enjoy prosperous and fulfilling lives and that economic, social, and technological progress occurs in harmony with nature." Sustainability and sustainable development are often referred to as the three Ps (People, Planet, and Prosperity).
People: There are significant social and environmental consequences in connection with the extraction of several of the raw materials in lithium-Ion batteries, particularly regarding conflict minerals. Minerals are considered conflict minerals if they are sourced from politically unstable areas and where the minerals trade can be used to finance armed groups, fuel forced labour and other human rights abuses, and support corruption and money laundering. There are several primary raw materials used to manufacture lithium-Ion batteries, which can have adverse impacts on its entire value chain. Cobalt is the most problematic raw material of all listed raw materials, as it is mined mainly in countries with poor regulation and disorganized small pits i.e., mining by hand using rudimentary and basic tools, often without adequate protective equipment. Over 50 percent of the world's cobalt is mined in the DRC (Democratic Republic of the Congo).
Planet: Batteries impact the environment both positively and negatively and environmental impact affects people. Both the pros and cons need to be considered in connection with the increased demand for different types of batteries to avoid rebound effects. The greenhouse gas emissions of producing a battery is about the same as the rest of the car itself, and thus the greenhouse gas emissions from production of an electric car are about twice as much as they are for a car that runs on only an internal combustion engine. In other impacts categories, it is clear that an electric car also produces significantly higher emissions of other types during the production.
Prosperity: Many of the Sustainable Development Goals aim to improve various areas related to the environment, people, and economic opportunities. Economic opportunities aim to provide decent work such as safe working conditions, living wages, compassionate leadership, and economic growth for those in specific communities. From a more strictly company perspective, the economic part is, of course, important. If a company has a deficit, it cannot continue to operate unless it somehow makes a turnaround. A company can focus on social and environmental impacts, but if they do not make any money, they cannot continue their liveable work (social and environment).
To ensure sustainability, the solution must be economically viable. Previously, companies were focused on profits obtained through a linear business model where higher sales equalled higher profits. The high-speed automatic assembly favours linear business models. Sustainability is a business approach to creating long-term value by considering how a given organization operates within the three Ps (People, Planet and Prosperity).
Sustainability is built on the assumption that developing such strategies foster company longevity. Without a focus on sustainability, it can be questioned how long the company can continue to operate as the expectations on corporate responsibility increases. Transparency becomes more prevalent, and more companies recognise the need to act on sustainability. Professional communications and good intentions are no longer enough as green claims are investigated, and greenwashing will hurt the reputation of the company.
Without a broad focus on sustainability, it may become increasingly difficult for companies to compete in the market. These considerations may increase the focus on the Nordics as a suitable place for production, as the green energy supply can help companies fulfil their sustainability goals and increase their market value.

Key barriers towards increased circularity today

Though there are numerous possibilities and advantages to the circular economy, still several barriers limit the increase in circularity. Key barriers include:
  • Company culture, which often can be a major obstacle regarding shifting from a well-established linear economy to circular economy, changing the mindset of consumers, involving full-life-cycle collaboration, and changing mindsets within companies.
  • Lack of circular design opportunities especially within the electronics and batteries due to the complexity of small components and compact products, which makes dismantling tricky for the recyclers or refurbishers and because batteries have varying dimensions, forms, and compositions of chemicals and metals, making it challenging to establish an efficient standardised system for battery recycling.
  • Lack of legislation, which can inhibit CE, however the Nordics and EU are still ahead due to national regulation and coming EU legislation on batteries.
  • Lack of consumer interest and awareness because some consumers simply like new items before their old ones are worn out, which is particular for trend-based, hi-tech and fast-paced products, such as mobile phones, which discourages manufacturers from making robust and more expensive products, as there is less market demand for such product for some product segments.
  • Low raw material prices because the fluctuating price of raw materials, like plastics or metals, hinders the economic incentive for purchasing recycled materials when there are low raw material prices. This further discourages investments in improving the current recycling systems which could help reducing the prices of regenerated resources. Furthermore, some primary raw materials are subject to subsidies making the market price of recycled materials even more unfavourable.
  • Black battery market and illegal exports, because between 30 and 40 percent of the EVs are exported before the end of their lives but the degree of illegal export is unknown because data on illegal export of WEEE is minimal. This leads to circularity challenges that include the batteries ending up for recycling in other parts of the world resulting in increased emissions for transportation, less efficient recycling facilities thus lower output quality, and lastly a reduced amount of recycled materials for the Nordic battery production industry.

Best practice and design for increased circularity

In this section, content is provided for separate handbooks for businesses and for consumers on best practice and design for increased circularity. For businesses, inspiration from concrete case examples is provided, while for consumers, specific advice on what they can do when purchasing and using the products.

For businesses

Many businesses are currently exploring the countless possibilities of working with circularity of batteries and battery-driven products through new business models and improved ways of using the batteries more efficiently. To unlock these innovative business potentials, new practices are needed in procurement, design, and production departments. The handbook contains inspiration for businesses for establishing these new practices. The basis for the inspiration topics is an evolution of the Ellen MacArthur Foundation’s model, where the focus on business models is stronger.
Five business model types have been explored and case examples have been provided of companies that have adopted these approaches and initiatives that consumers can apply to support the circular economy of batteries. The models cover:
  • Circular supplies that describe how to support sustainability and circular economy looking upstream in the value chain and demanding sustainable materials.
  • Resource recovery that describes actions that can ensure reuse and recycling by applying actions downstream in the value chain.
  • Product life extension that includes all the actions consumers and manufacturers can apply to increase the lifespan of products and components during the use phase.
  • Sharing platforms that help to decrease the need for products by effectively sharing fewer amenities among more users.
  • Products as a service where product ownership is never transferred to the consumer thus supporting maintenance, product life extension, and resource recovery.

For consumers

Consumers can support the development towards circularity of batteries and battery-driven products through new business models and improved ways of using the batteries more efficiently via their purchases and at the same time achieve economic benefits for themselves and help protecting the environment.
The handbook describes the principles behind circular design to better understand the following best practice recommendations and suggest what consumers can do via their action at the purchase situation and during use of the purchased products.
Circular ways to buying, using and disposing batteries are presented together with case examples of companies that have adopted circular initiatives within the five business model types described above. The models cover:
  • Circular supplies that describe circularity in the materials that go into the products.
  • Resource recovery that describes actions that can ensure reuse and recycling of batteries.
  • Product life extension that includes all the actions that can increase the lifespan of battery products and components during the use phase.
  • Sharing platforms that help to decrease the need for products by effectively sharing fewer amenities among more users.
  • Products as a service where product ownership is never transferred to the consumer thus supporting maintenance, product life extension, and resource recovery.