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Key Facts
Circular Economy Facts & Figures
The circular economy is forecast to record annual growth of more than five percent – reaching market volume of EUR 32 billion by 2030.
European legislation is increasingly influencing the trajectory of Germany's circular economy. This can be seen in the enactment of the Critical Raw Material Act (CRMA) by the European Union (EU) in April 2023. This legislation outlines a list of critical raw materials essential for the ongoing advancement of the EU, focusing primarily on metals and rare earth elements.
The new EU battery regulation also promotes the circular economy and fuels demand for recycling of battery materials in Germany. Measures foreseen include stricter waste collection targets, minimum levels of materials recovered from waste batteries and minimum levels of recycling contents.
International investors can benefit from new opportunities in the German battery recycling market. There are numerous investment opportunities including the acquisition of existing recycling companies, establishing joint ventures with German partners and starting new businesses.
Opportunities
Ambitious electrification targets and world-leading original equipment manufacturers infrastructure create a unique lithium-ion battery recycling market in Germany. The European car industry is undergoing rapid technological transformation. Sales of battery electric vehicles (BEVs) and plug-in electric vehicles (PHEVs) have grown significantly. BEV and PHEV share of total vehicle sales will continue to rise and is expected to reach over 50 percent by 2030.
While EV sales figures are strongly increasing, the end-of-life treatment of lithium-ion EV batteries is still at an early stage. The materials inside lithium-ion EV batteries – including cobalt, nickel, manganese, and lithium – are finite resources currently only being produced by a handful of nations. Electric vehicle growth will see mining producers struggle to meet demand over the next two decades. Recycling the same materials from end-of life batteries can help the EV industry to address raw material shortages while creating a sustainable circular battery supply chain that promotes environmental sustainability in Europe.
Pre-treament facilities: establishment of decentralized pre-processing plants where end-of-life batteries and production scrap materials are discharged, dismantled and further processed into black mass - usually by mechanical or thermal pre-treatment. Germany’s existing network of OEMs and gigafactories provides unique market opportunities for companies that provide the required technology.
Hydrometallurgical and pyrometallurgical recycling plants: These are production facilities where the black mass is further processed to maximally remove impurities and recover critical battery materials including copper, nickel manganese and lithium. Germany’s large chemical park infrastructure – with over 35 chemical parks – offers investors cost-efficient and unique investment locations with excellent infrastructure, chemical raw materials via pipelines, gases and steam via pipelines, and a stable and secure energy supply.
Battery re-use: Potential business models include second-life concepts such as remanufacturing or repurposing before subsequent recycling of obsolete traction batteries. The re-use of traction batteries may include some updating in the form of remanufacturing which requires industrial recovery standards. Such processes contain at least a partial disassembling and exchange of some components such as the weakest battery modules within a battery pack to regain full functionality.
Using remanufactured batteries as spare parts in the after-sales business can be of interest for original equipment manufacturers (OEMs). These business options can be performed best by OEMs or battery suppliers, but where he battery management system (BMS) is accessible to all stakeholders, independent remanufactures can also enter the market.
Success Stories
We have a proven track record in helping international companies of all sizes successfully set up business in one of the world’s most dynamic markets. Find out why renowned international companies chose Germany as a location for their business and how Germany Trade & Invest helped them to settle in Europe’s biggest market.
Success Story IDs:
The Australian based company Neometals Ltd. started a joint venture with the SMS group in Germany to demonstrate and commercialize an innovative lithium battery recycling process. The flagship project, Primobius, includes the construction of a showcase demonstration plant. Germany Trade & Invest provided investor support and site selection services to Neometals.
Germany Trade & Invest spoke to Jeremy McManus, General Manager, Commercial and Investor Relations of Neometals, about the market outlook and the company's decision to start operations in Germany.
Full Interview: Neometals to Tackle Huge European Demand for Battery Raw Materials
Business Environment
In plastics industry: EU regulation on packaging and packaging waste unveiled toward the end of November 2022. The EU Commission suggests a significant increase in the current recyclate content requirement for single-use plastic beverage bottles – aiming to raise it from 30 percent to 65 percent by the year 2040. The provisions of the German Waste Management Act (KrWG) are the backbone of Germany’s leading waste management & recycling market. The KrWG enshrines the concept of product responsibility by defining responsibilities along the product life cycle and offering incentives to manufacture durable products. The act seeks to turn a waste management culture into a resource management culture – minimizing waste generation and maximizing reuse and recycling.
In battery industry: With comprehensive legislation covering the entire battery life cycle, the new EU battery regulation promotes a circular economy and fuels the demand for battery recycling in Germany. Measures foreseen include:
A digital battery passport for light means of transport (LMT) batteries, industrial batteries and EV batteries
Stricter waste collection targets: portable batteries 45 percent by 2023, 63 percent by 2027 and 73 percent by 2030; LMT batteries 51 percent by 2028 and 61 percent by 2031
Minimum levels of materials recovered from waste batteries: lithium 50 percent by 2027 and 80 percent by 2031; cobalt, copper, lead and nickel 90 percent by 2027 and 95 percent by 2031
Minimum levels of recycled content for new batteries: cobalt 16 percent, lead 85 percent, lithium 6 percent, nickel 6 percent by 2031; cobalt 26 percent, lead 85 percent, lithium 12 percent, nickel 15 percent by 2036
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