1.0 Introduction

Eunomia Research & Consulting Ltd. (Eunomia) and Mepex Consult AS (Mepex) were commissioned by the Norwegian Environment Agency (NEA) (on behalf of the Nordic Council of Ministers) to conduct research into best available techniques (BAT) in the production, reuse and recycling of electric vehicle (EV) batteries. With a primary focus on three key Nordic countries, the study sought to contribute to building knowledge around technologies and procedures capable of reducing emissions and minimising environmental risks across the EV battery value chain. Ultimately, the intention behind this research was to provide the initial findings capable of underpinning future BAT reference (BREF) documents.

EVs are the fastest growing segment in the mobility sector. The European Union’s Fit for 55 package introduces emissions reduction targets for certain vehicles. These targets include a 50% reduction in emissions from cars, a 55% reduction in emissions from vans and a 100% reduction target for all new cars and vans placed on the market from 2035 (economy wide, relative to a 2021 baseline).

European Commission (2023). Fit for 55. Retrieved from: https://www.consilium.europa.eu/en/policies/green-deal/fit-for-55-the-eu-plan-for-a-green-transition/

Consequently, EVs are being increasingly considered a vital technology for meeting these targets. As well as eliminating tailpipe emissions, when paired with low carbon grid mixes (such as those found in most Nordic countries), EVs have the potential to significantly reduce overall “well-to-wheel” emissions.

Well-to-wheel emissions include all emissions related to fuel production, processing, distribution and use.

Not only does this have a direct impact on the production of greenhouse gases (GHGs), but it also minimises the generation of other harmful pollutants that can be damaging to both human and environmental health. However, it is worth noting EVs are typically heavier than internal combustion engine (ICE) vehicles. Consequently, some of the benefit associated with the reduction of harmful pollutants (particulate matter) from tailpipe emissions may be counteracted by the increase in particulate matter from tyre and road wear due to higher weight.

Despite these benefits, the life cycle of EV batteries can result in harmful emissions and environmental risks. Particularly well-documented issues with the production, reuse and recycling of batteries include:

The mining of lithium to produce battery anodes can lead to excessive water consumption, depletion of local resources, pollution of local waterways and reduction in local air quality.
Vera, M. et al. (2023). Environmental impact of direct lithium extraction from brines. Nature Reviews Earth & Environment, 4, 149-165. Retrieved from: https://www.nature.com/articles/s43017-022-00387-5

The mining of cobalt to produce cathodes is linked to social concerns over the use of child labour and is also understood to contaminate surrounding waterways with carcinogenic pollutants.
Davey, C. (2023). The Environmental Impacts of Cobalt Mining in Congo. Retrieved from: https://earth.org/cobalt-mining-in-congo/#:~:text=Cobalt%20is%20fast%20turning%20from,are%20vital%20for%20soil%20fertility.
Lithium-ion batteries are susceptible to “thermal runaway”, which can lead to fires or explosions if incorrectly managed (particularly when multiple batteries are stored or transported together).
Held, M. et al. (2022). Thermal runway and fire of electric vehicle lithium-ion battery and contamination of infrastructure facility. Renewable and Sustainable Energy Reviews, 165. Retrieved from: https://www.sciencedirect.com/science/article/pii/S1364032122003793

While these are commonly cited issues with the production and management of batteries worth being aware of, it should be noted that emissions and risks associated with the mining of raw materials are not considered to be within the scope of this study. Therefore, they have not been discussed further in the coming sections. The environmental risks highlighted throughout this report are associated with value chain stages from manufacture through to end-of-life, excluding the use phase.

In addition to these environmental risks, there are distinct barriers to the circularity of batteries. For example, the degradation of battery capacity during use can leave reuse in the same application (i.e., EV battery to EV battery) impractical. Additionally, while the recycling of EV batteries is technically feasible, it remains complex and costly. Finally, early experience indicates a longer battery life than originally assumed. While beneficial in many respects, this factor may further prevent the viability of EV-to-EV reuse, considering the speed at which technological developments are occurring. Although used batteries may still be workable, new chemistries and designs can render older alternatives inefficient and outdated, often to the point that it makes neither economic nor environmental sense to continue using them.

1.1 Study Aims

Focussing on three Nordic countries – Norway, Sweden, Finland – the primary objectives of this study were:

To build an evidence base that could underpin the eventual identification of the best available techniques (BATs) for the production, reuse and recycling of EV batteries.
To outline the emissions and environmental risks associated with select areas of the value chain.
To contribute towards building knowledge around increasing the circularity of EV batteries; and

To support the Nordic region to make progress around EV batteries, including reducing their impact.

Ultimately, the information collated through this study will serve as a precursor for the Nordic countries’ input into the EU on BAT and BREF processes for batteries.

1.2 Report Structure

The report is structured as follows:

Section 2.0 provides insight into the background and context of this study. It covers the EV battery market, the policy landscape and permitting considerations.

Section 3.0 gives an overview of the EV battery value chain, including its structure, the applicability to the Nordic context and the key stakeholders within the geographies considered.

Sections 4.0 to 9.0 summarise the best available techniques for EV battery production, management and end-of-life.

Section 10.0 reviews the findings of the study, summarising the key environmental risks associated with the EV battery value chain, as well as the primary barriers to greater circularity in the sector.