As electric vehicles (EVs) become a mainstream transportation option, Western societies are beginning to focus more on the ethical and environmental issues that underpin this energy transition. For decades, the traditional automotive industry has relied heavily on fossil fuels, which has led to massive greenhouse gas emissions. According to the U.S. Environmental Protection Agency (EPA), the transportation sector is now the single largest source of carbon emissions in the country. This not only intensifies the urgency of the climate crisis but also positions EVs as a pivotal solution to reduce emissions.
However, if this shift to electrification focuses solely on changing the powertrain of vehicles while ignoring the ethical and environmental costs of battery production and disposal, the solution may merely shift the problem—from tailpipe emissions to raw material extraction. In this context, “battery circularity” has emerged as a central theme among Western policymakers, industry leaders, and academics. The core idea is to create a closed-loop system where EV batteries can be reused, repurposed, or recycled at the end of their lifespan—maximizing material value and reducing dependency on virgin resources.
Most EVs on the market today use lithium-ion batteries (LIBs), which contain critical minerals such as lithium, cobalt, nickel, and graphite. These energy transition materials (ETMs) are largely recyclable, in stark contrast to internal combustion vehicles that rely on the ongoing consumption and burning of fossil fuels. Nonetheless, the extraction and processing of these minerals often involve deeply troubling practices, especially in developing countries.
Take the Democratic Republic of Congo, for example—a nation that supplies the majority of the world’s cobalt. Small-scale mining operations there have long been plagued by issues such as child labor and unsafe working conditions. Reports from Amnesty International highlight that many of these miners dig by hand without even basic safety equipment, resulting in frequent and often fatal accidents.
Alexia Melendez Martineau, Senior Policy Manager at Plug In America, stated: “Electrification shouldn’t come at the cost of sacrificing the rights and safety of communities in the Global South. If we ignore the ethical issues behind where our materials come from, then even the greenest technology can’t truly be considered sustainable.” Along with Raquel Dominguez, a circular economy advocate at Earthworks, she argues that accelerating domestic recycling and remanufacturing capabilities is vital. If we can recover and reuse 70% or more of battery materials, the global demand for new mining can be significantly curbed, and we can also reduce the roughly 10% of global GHG emissions associated with mineral extraction, as estimated by the UN Environment Programme.
Some companies and municipalities have already taken proactive steps. In California, Redwood Materials—a startup founded by Tesla co-founder JB Straubel—focuses on recovering lithium, cobalt, and nickel from retired EV batteries and refining them for reuse in new battery production. Straubel emphasizes: “We are building a materials closed-loop ecosystem, where batteries are no longer disposable resources but renewable material banks.”
Policy frameworks are also starting to align with this vision. In 2023, the European Union passed the Battery Regulation, which mandates that all batteries sold in Europe meet minimum recycled content thresholds and display clear information on carbon footprint and raw material origin. Meanwhile, in the United States, the Inflation Reduction Act (IRA) provides subsidies and tax credits for domestic recycling initiatives to stimulate more investment in the battery circular economy. BloombergNEF estimates that by 2030, over 12 million metric tons of retired EV batteries will be ready for recycling—a volume that represents one of the most promising emerging industries of the next decade.
From the consumer perspective, buyers should be encouraged to look beyond just the vehicle’s range or brand reputation when selecting an EV. Understanding whether the battery supply chain upholds ethical and environmental standards is increasingly critical. American EV maker Rivian, for instance, openly discloses its material sourcing and recycling partnerships on its website, aligning itself with recycling tech firms to lower lifecycle emissions. These practices are especially appealing to younger demographics—according to Pew Research Center, 68% of Gen Z consumers in the U.S. say they prioritize companies that demonstrate transparency and responsibility.
That said, a truly sustainable transportation future requires more than simply switching to electric cars. We also need to expand public transit systems, redesign urban spaces for walkability, and manage overall transportation demand. EVs may eliminate tailpipe emissions, but if their production and recycling processes remain tied to fossil energy and exploitative labor practices, then the climate crisis remains unresolved. As Raquel Dominguez aptly put it: “Sustainability isn’t just about what car you drive—it’s about the values and systems that power your entire society.”
We must see this transition as an opportunity to rebuild a more equitable and resilient industrial ecosystem. Designing batteries with disassembly and recycling in mind, minimizing material use, and maximizing longevity are critical to realizing a cradle-to-cradle system. Some startups are now developing modular battery designs that allow damaged cells to be replaced individually, rather than scrapping the entire pack. Others are repurposing old EV batteries as stationary energy storage solutions to support solar or wind power infrastructure. These innovations are helping dismantle the outdated linear consumption model and replace it with a regenerative circular one.
Of course, this transition won’t happen overnight. It requires clear regulations and economic incentives from governments, sustained R&D and capital investment from industry, and ethical commitment from consumers. Only when these three forces form a virtuous cycle can EVs truly become part of a climate-positive future.
Ultimately, this revolution isn’t just about driving differently—it’s about thinking differently. It's about reimagining how we value resources, innovate responsibly, and distribute risk and reward. As climate pressures mount, Western society finds itself at a crossroads. What we need is not just electric vehicles, but a bold rethinking of the entire mobility ecosystem. And in that vision, the circular battery economy isn’t just an option—it’s the foundation.