The state of lithium-ion battery development
Sustainability report
Co-written by Angelica Ruzanova, Chloe Lewis, Katelyn Charles andCitrine Briseno, November 2024.
In December 2021, Elon Musk made the strategic decision to relocate the headquarters of Tesla, a leading electric automotive company, to Austin, Texas. This move was particularly interesting, not only for its business implications but also for the tension it created between the company’s clean energy focus and Texas’ historical reliance on the oil and natural gas economy (Chokshi et al. 2021).
Tesla’s operations heavily depend on lithium-ion batteries which have shown potential for decarbonizing energy systems and advancing the clean energy revolution across the world. In order to explore emerging risks and opportunities in lithium-ion battery development further, our group researched literature, analyzed data, and conducted an interview with an expert in the field, finding that the growing implementation of energy storage technology is more nuanced than we originally thought.
Lithium-ion batteries are used to power our everyday devices. Phones, laptops, tablets, smartwatches, gaming controllers, electric vehicles, and even smoke detectors are dependent on the electric current discharged by the dense battery type.
They are lighter, charge faster, and have a longer lifespan than the previously popular lead-acid batteries. They can be used to power large mechanical devices such as wind turbines, and are increasingly in demand for renewable energy infrastructure such as the storage of surplus solar power (Lithium Harvest 2024).
However, the opportunity for efficient energy storage and the pursuit of climate-related sustainability goals reveal noteworthy material risks that governments, businesses, and individuals will have to consider. These factors can be categorized into waste management, corporate responsibility, and consumer awareness.
Waste Management
Due to the prevalence of lithium batteries in our everyday items, there has been a substantial increase in waste. In fact, electronic waste is the fastest-growing segment of waste in the United States, despite the disproportionate regulatory thresholds currently in place (see Table 1.1). Toxic gasses and particles can be released into the air during informal recycling processes, such as burning e-waste or acid washing of metals, which can lead to respiratory problems and long-term health issues like lung damage or cancer. It is therefore crucial for companies to discard e-waste properly as it poses major health and environmental problems, some of which are flagged by independent government agencies.
Landfill
According to the Institute for Energy Research, 98% of lithium batteries end up in landfills, resulting in an increase in landfill fires. The batteries are reactive and ignitable, which is why the Environmental Protection Agency (EPA) considers them “hazardous waste” and recommends certain regulations for disposal. They suggest batteries should not be shredded or opened and must be properly ventilated.
Batteries should be packaged for transit according to the Department of Transportation guidelines, and treated at a facility with proper permits. The metals inside lithium-ion batteries also have the potential to leach and contaminate soil and groundwater if not properly disposed of. Metals such as lithium, aluminum, copper, and lead leak into the ground and become very hard to capture.
Landfill disposal demands the most energy, has the least economic benefit, and has the highest eco-toxicity potential (Richa 2017). Luckily, lithium batteries have a few end-of-life alternatives, such as recycling, reuse, and cascaded use.
Reuse
Restoring used batteries avoids the burden of manufacturing completely new packs. For example, EV lithium batteries are considered retired after about 4-5 years, yet most still have 80% of their initial capacity.
With better technology and more market support, the reuse of lithium-ion batteries could save a lot of energy. Refurbishment of lithium-ion batteries is most common in smartphones which are often traded in and sold below the initial value (Sheth 2023). However, batteries suffer declining efficiency and lose part of their charging capacity as they age, and their redistribution must also undergo disassembly, testing, and repackaging.
Eventually, when the battery’s capacity deteriorates further to around 50%, it can be sent for recycling.
Recycling
About 40% of lithium-ion’s carbon footprint and over half of its cost come from the mining and refining of the cell materials (Sheth 2023). With more accommodating infrastructure in place, recycling can increase the capacity for the reuse of valuable metals such as lithium, cobalt, and manganese, which after being extracted from dead batteries can be sold back to manufacturers.
Additionally, recycled lithium has been observed to be more porous which results in faster charging. However, battery manufacturers have recently shifted to using lower-cost materials, providing less of a financial incentive to extract them.
Recycling takes a lot of steps and it is very costly and energy intensive. Pyrometallurgy is used to deactivate the batteries, mechanical processing separates the metals, and hydrometallurgy extracts the valuable metal often resulting in some loss. The complicated and expensive process of battery recycling is a less appealing option for many businesses, according to an interviewed source from BattGenie. This has caused companies to invest in research that prolongs battery lifespan instead (see Research in Software Solutions).
Cascaded Use
Cascaded use, or second-life application, presents an opportunity to improve material efficiency and conserve energy. Researchers in the software sector suggest that used batteries in vehicles can be repurposed. This typically involves stationary energy storage that can help strengthen the electricity grid by storing energy during periods of low demand and releasing it during peak hours. For example, stored energy can be used in shipping containers for backup power.
According to an expert in the field, the demand for stationary energy storage is increasing, particularly in regions like Texas, after experiencing power outages and grid instability. These repurposed batteries could be used to store energy from renewable sources like wind or solar for around 10 years of use (Sheth 2023). Repurposing EV batteries for such applications offers a sustainable and cost-effective solution for meeting these energy needs.
Research in Software Solutions
Our group interviewed Chintak Pathak, co-founder and CPO of BattGenie, to discuss the role of battery efficiency in the context of sustainable use and disposal of the product within companies such as Apple, Tesla, and Dell. BattGenie develops software solutions for battery management systems, focusing on improving performance by optimizing charging processes. The software, Pathak said, addresses the challenge of extending battery lifespan by nearly double – a factor that encourages sustainable management due to the reduction in the frequency of battery replacement.
Currently, the company collaborates with Original Equipment Manufacturers (OEMs) to integrate software into devices and vehicles during the manufacturing process. That way, “efficiency can be tracked in the battery system from the outset,” Pathak said, noting that innovation in battery data sensors is a growing area of research.
Economic Incentives
What ultimately drives companies for sustainable outcomes is profit and efficiency gains, according to Pathak. Therefore, the need for economic incentives remains one of the core objectives that encourage wider adoption of new technology. The co-founder also stated some of the issues in the battery industry:
Manpower shortage, or difficulty finding qualified battery experts;
Inadequate charging infrastructure and availability;
High battery cost as EVs are still not price-competitive with traditional vehicles;
Limited government support (in the US) compared to Europe and China.
Other areas of research to consider are sensor technology (voltage and temperature from a cell), battery pack design, and second-life application when it comes to companies wanting to extend their product lifespan, reduce material consumption, and delay recycling.
Corporate Responsibility
Mitigating electronic waste is crucial, and companies engaged in the production and sale of lithium-ion products must acknowledge their responsibility to develop and implement sustainable management systems. This includes adopting sustainable manufacturing practices that prioritize environmental stewardship and supporting the establishment of regulatory frameworks to ensure responsible disposal and recycling.
Corporate Models to Reduce Lithium-Ion Waste
One way companies have aimed to combat the effects of lithium-ion battery waste is by implementing programs to limit or eliminate their use. An example of this is Apple, which has made a commitment to switch to only using recycled cobalt in their batteries by 2025 to try and reduce their carbon footprint (Apple 2023).
Similarly, BMW has announced a partnership with lithium-battery-recycling company: Redwood Materials. This is an effort to “recycle all lithium-ion” from any electric, and hybrid electric vehicles from BMW, MINI, and Rolls Royce in the United States (BMW of North America, Redwood Materials 2024). They plan to do this by creating a circular lifecycle supply chain in which the materials from their lithium-ion batteries are infinitely recyclable.
Based on the previous example, Tesla’s 2023 Impact Report also emphasized the company’s commitment to addressing key challenges of lithium-ion batteries, from extraction to usability. The report states that Tesla batteries are designed to last over 200,000 miles to reduce the frequency of replacement, have regionalized sourcing for better control of the supply chain, and utilize less-toxic reagents in its lithium refinery in Corpus Christi, Texas (Tesla 2023).
Addressing Unethical Mining
Lithium mining often occurs in remote areas of Argentina, Chile, and Bolivia, where 60% of brine is sourced. Extraction sites usually reduce the communities' access to safe drinking water and cause an increase in livestock deaths as a result. Indigenous communities also face land rights threats due to increased extraction sites.
The process of mining lithium also requires copious amounts of water and poses a significant threat to wetlands. These highly vulnerable ecosystems are of great importance to many endangered species like taguas and guanacos (Heredia 2020).
Cobalt, which makes up around 20% of the mass in a lithium-ion battery, has its own extraction issues (Richa 2017). The Democratic Republic of Congo supplies the majority of cobalt but has recently been in the public light for unethical sourcing methods. Extraction sites have been called out for discrimination, child labor, forced labor, unsafe working conditions, and wages well below the living standard (Mancini 2021).
These factors have encouraged companies to be more transparent about their resource extraction practices, such as the “Responsible Lithium Partnership” project between multiple automobile companies and civil and indigenous representatives, which puts these challenges on public display (Mercedes-Benz 2024).
Measuring and Reporting Impact
As demand for lithium increases – driven by the rise of EVs, smartphones, and renewable energy storage – so too does the urgency and scale of lithium mining (see Table 1.2). However, the way lithium is mined, and the conditions under which it is extracted, raise several concerns. These concerns encompass environmental degradation, hazardous waste, human rights violations, and the disproportionate impact on vulnerable communities.
In order to encourage corporate accountability of lithium-ion battery production and usage, accounting standards boards such as SASB should include disclosure topics and metrics for the use and recycling/disposal of lithium-ion batteries as well as considerations of where and how the material is sourced.
According to the Resource Conservation and Recovery Act, most lithium-ion batteries in circulation and on the market can likely be defined as “hazardous waste.” As a result, companies distributing these products should be required to determine and disclose any potential risk hazard associated with their product end-of-life disposal.
The EPA recommends that companies disclose lithium battery products under the “universal waste” regulations from the code of federal regulations (U.S. Environmental Protection Agency 2023). This code provides guidance for proper waste disposal, product labeling, and international shipping regulations for lithium-battery-containing products. Additional issues such as geopolitical issues pose a great risk for the usage of lithium batteries.
Consumer Awareness
Consumer Disposal
The EPA has published information regarding the two main types of lithium-ion batteries in widespread consumer use: single-use and non-rechargeable lithium metal batteries. The type of lithium battery in use dictates how it should be disposed of by consumers in order to avoid potential hazards such as electric fires. This is important for consumers because rechargeable lithium batteries need to be disposed of at municipal electronics-recycling facilities, rather than any standard waste/trash disposal.
Consumer Recycling Effectiveness
According to a study conducted by the Environmental Science and Pollution Research in Australia, as many as 64% of consumers “never recycle” their lithium batteries, noting that about half of the participants were unaware of proper lithium-battery disposal methods and facilities and about a quarter were located too far from suitable disposal facilities. Up to 30% believed that lithium-battery collection and disposal was a government responsibility, with 14% responding that it should be the manufacturer's responsibility (Islam et al. 2022).
In order to encourage sustainable recycling/disposal practices, government organizations should partner with lithium-battery-product-containing companies to establish more recycling/disposal facilities. They should also implement collection areas in popular product stores such as Apple, Best Buy, and other large electronics retailers. Manufacturers should disclose proper recycling processes for their products on their websites and packaging to increase consumer awareness, and also track and disclose recycling rates.
References
Apple. “Apple Will Use 100 Percent Recycled Cobalt in Batteries by 2025.” Apple Newsroom, 13 Apr. 2023, https://www.apple.com/newsroom/2023/04/apple-will-use-100-percent-recycled-cobalt-in-batteries-by-2025/.
BMW of North America, and Redwood Materials. “BMW of North America and Redwood Materials Establish Partnership to Recycle Lithium-Ion Batteries.” BMW Group Press, 19 Sept. 2024, https://www.press.bmwgroup.com/usa/article/detail/T0445142EN_US/bmw-of-north-america-and-redwood-materials-establish-partnership-to-recycle-lithium-ion-batteries?language=en_US.
Chokshi, Nijar, et al. “Are Tesla and Texas a Perfect Match? It’s Questionable.” The New York Times, 13 Oct. 2021, https://www.nytimes.com/2021/10/08/business/tesla-texas-headquarters.html.
“Collaboration to promote responsible handling of lithium in Chile.” Mercedes-Benz. April 2024. https://group.mercedes-benz.com/sustainability/human-rights/supply-chains/responsible-lithium-partnership.html
Heredia, Florencia, et al. “The Importance of Lithium for Achieving a Low-Carbon Future: Overview of the Lithium Extraction in the ‘Lithium Triangle.’” Journal of Energy & Natural Resources Law, vol. 38, no. 3, July 2020, pp. 213–36. Taylor and Francis+NEJM, https://doi.org/10.1080/02646811.2020.1784565.
IER. “Environmental Impacts of Lithium-Ion Batteries.” Institute for Energy Research, 11 May 2023, https://www.instituteforenergyresearch.org/renewable/environmental-impacts-of-lithium-ion-batteries/.
Table 1.2 “Production of lithium-ion batteries results in more carbon dioxide emissions than the production of gasoline-powered cars and their disposal at the end of their life cycle is a growing environmental concern as more and more electric vehicles populate the world’s roads.” (IER)
Kang, Daniel Hsing Po. “Potential Environmental and Human Health Impacts of Rechargeable Lithium Batteries in Electronic Waste.” ACS Publications, 22 Apr. 2013, https://pubs.acs.org/doi/full/10.1021/es400614y.
Table 1.1 California regulatory limits compared to material classified as “hazardous” measured in lithium-ion batteries (ACS)
Islam, M. T., et al. “Waste Battery Disposal and Recycling Behavior: A Study on the Australian Perspective.” Environmental Science and Pollution Research, vol. 29, 2022, pp. 59880, https://doi.org/10.1007/s11356-022-19681-2.
“Lithium - New Gold Rush in the Andes.” DW Documentary, 20 June 2021, YouTube, https://www.youtube.com/watch?v=LZjiEggYglM.
“Lithium-Ion Battery Recycling.” U.S. Environmental Protection Agency, 17 June 2023, https://www.epa.gov/hw/lithium-ion-battery-recycling-frequently-asked-questions.
MANLY. “2023 Lithium Ion vs Lead Acid: A Detailed Comparison.” MANLY Battery, 10 Dec. 2023, https://manlybattery.com/lithium-iron-phosphate-lead-acid/.
Mancini, Lucia, et al. “Assessing Impacts of Responsible Sourcing Initiatives for Cobalt: Insights from a Case Study.” Resources Policy, vol. 71, June 2021, p. 102015. ScienceDirect, https://doi.org/10.1016/j.resourpol.2021.102015.
Richa, Kirti, et al. “Eco-Efficiency Analysis of a Lithium-Ion Battery Waste Hierarchy Inspired by Circular Economy.” Journal of Industrial Ecology, vol. 21, no. 3, 2017, pp. 715–30, https://doi.org/10.1111/jiec.12607.
Sheth, Rahil Parag, et al. “The Lithium-Ion Battery Recycling Process from a Circular Economy Perspective—A Review and Future Directions.” Energies, vol. 16, no. 7, 2023, https://doi.org/10.3390/en16073228.
“Standards for Universal Waste Management.” Code of Federal Regulations, 10 Nov. 2024, https://www.ecfr.gov/current/title-40/part-273.
“Impact Report,” Tesla, 2023. https://www.tesla.com/ns_videos/2023-tesla-impact-report-highlights.pdf
“Used Lithium-Ion Batteries.” EPA, 11 Nov. 2023, https://www.epa.gov/recycle/used-lithium-ion-batteries.
“How Lithium Is Powering the Renewable Energy Revolution.” Lithium Harvest, 26 Aug. 2024, https://lithiumharvest.com/knowledge/green-energy-transition/how-lithium-is-powering-the-renewable-energy-revolution/#:~:text=Solar%20energy%20systems%20convert%20sunlight,low%20sunlight%20or%20high%20demand.
