Management of Spent Electric Vehicle Batteries After Their Use

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In the global pursuit of decarbonization, the electrification of road transportation, which accounts for 14% of global greenhouse gas (GHG) emissions, plays a crucial role. This is highlighted in a recent report focusing on two critical sustainability issues related to electric vehicles (EVs): the development of supply chains for EV batteries, including critical minerals, and the management of end-of-life (EoL) EV batteries.

The report underscores the need for strategies like Transportation Demand Management (TDM) to reduce the overall demand for materials. It also emphasizes the uncertainty surrounding material recovery rates and the persistent reliance on primary extraction, reinforcing the importance of ethical material sourcing and robust regulatory standards in EV battery management regimes.

Canada, with its commitment to a 40-45% reduction in GHG emissions relative to 2005 levels by 2030 and aspiring to achieve net-zero emissions by 2050, is actively engaged in this transition. The government has supported the development of electric vehicle battery factories, such as the Next Star Energy joint venture between Stellantis and LG Energy, with a facility in Windsor, Ontario, planned to produce 49 gigawatt-hours per year starting fall 2025.

While the Canadian government's direct financial support for these factories is less detailed in available sources, this development is a key part of Canada's EV strategy. Canadian federal and provincial programs broadly support EV adoption and infrastructure, offering rebates for consumers and investments in public and private charging networks. In contrast, the U.S. government delivers substantial direct funding and tax credits for battery factories and EV buyers through laws like the Inflation Reduction Act.

The management of EoL EV batteries has received comparatively less attention despite its potential interconnectedness with the development of EV battery supply chains. Key recommendations from the report include establishing a national EoL EV battery management regime, implementing extended producer responsibility, incorporating design for disassembly and recycling, promoting a circular economy for EV battery materials, addressing environmental justice concerns, and facilitating second uses for EoL EV batteries.

Original equipment manufacturers (OEMs) are recommended to provide battery health information for second-life use. Transparency measures such as battery passports are introduced to ensure traceability throughout the lifecycle of EV batteries. Ethical material sourcing requirements and robust regulatory standards around mine development are also emphasized.

The report advocates for the modernization of electricity systems and markets to accommodate distributed energy resources. Proposals are under consideration to mandate 100% zero-emission vehicle sales for light-duty vehicles by 2035. The Canadian federal government and provincial authorities in Ontario and Quebec have allocated funds for electric vehicle battery manufacturing facilities and supply chains.

The report also analyses the policy and regulatory landscapes for EoL EV batteries in Canada, the United States, and the European Union. The United Nations Intergovernmental Panel on Climate Change (IPCC) advocates for the reduction of GHG emissions as the primary strategy for mitigating climate change, underscoring the importance of these efforts.

In conclusion, Canada is making strides in the electrification of transportation and the sustainable management of EV batteries. However, more needs to be done to address the challenges posed by material recovery rates, ethical sourcing, and the management of EoL batteries. The recommendations from the report aim to inform the development of a comprehensive Canadian policy and regulatory regime for EoL EV batteries, paving the way for a more sustainable future.