A systematic analysis of the costs and environmental impacts of critical materials recovery from hybrid electric vehicle batteries in the U.S.

Critical materials such as rare earth underpin technologies needed for a decarbonized global economy. Recycling can mitigate the supply risks created by the increasing demand and net import dependence, and enable a circular economy for critical materials. In this study, we analyze the feasibility and life-cycle impacts of recovering critical materials from spent nickel metal hydride batteries from hybrid electric vehicles in the U.S., accounting for stocks, battery scrappage, and end-of-life reverse logistics, given uncertain future availability scenarios. Our results show that the total collection and recycling costs depend strongly on future battery availability, with marginal costs exceeding marginal revenues when the availability of spent batteries declines. We quantify the potential of recycling to reduce primary imports, as well as the accompanying climate change and resource impacts. We explore the underlying reverse logistics infrastructure required for battery recycling and evaluate strategies for reducing associated capital investment risk.