The Ellen MacArthur Foundation proposes a systemic shift in EV battery management to extend asset life, reduce demand for new materials, and unlock economic benefits, spotlighting industry-led actions and policy reforms at the World Economic Forum.
The Ellen MacArthur Foundation has set out a roadmap for treating electric vehicle batteries and the minerals they contain as durable, recoverable assets rather than single‑use commodities, in a report presented at the World Economic Forum in Davos on 24 January 2026. According to the report by the foundation, a systemic shift across product design, business models, infrastructure and governance is needed to retain battery value across multiple lifecycles, cut demand for newly extracted materials, lower emissions and strengthen supply‑chain resilience.
Titled “Leading The Charge – Turning risk into reward with a circular economy for EV batteries and critical minerals”, the paper was developed with input from more than 30 stakeholders spanning manufacturers, logistics providers, vehicle-makers, researchers and non‑profits, including CATL, DHL, Volvo and JLR. It sets out five priority actions for industry and policy makers: design batteries with reuse and recovery in mind; integrate battery service into optimised energy‑mobility systems; create commercial models that treat batteries as long‑term assets; build regional circular infrastructure; and establish a circular operating system through shared data, common standards and enabling policies. The foundation says these measures will not only reduce material and carbon intensity, but also unlock new revenue streams and distribute economic benefits more equitably across regions.
The report frames circularity as a risk‑management and value‑creation strategy. A linear, material‑intensive approach exposes manufacturers and national economies to supply‑demand gaps and volatile prices for critical minerals, as well as environmental and social harms associated with extraction. By contrast, keeping materials in high‑value use across repair, second life and closed‑loop recycling can reduce exposure to material shortages, lower lifecycle emissions and support the integration of variable renewable generation through stationary battery reuse.
Industry examples cited in the material illustrate the potential gains. Contemporary Amperex Technology Co. Limited (CATL), a major contributor to the report and a strategic partner of the foundation, is highlighted for managing batteries as centrally tracked assets to increase utilisation, enable preventative maintenance and secure predictable returns at end of use. CATL already operates extensive battery swap networks for passenger and commercial vehicles and has established recycling operations that the foundation reports achieve recovery rates of 99.6 percent for nickel, cobalt and manganese, and 96.5 percent for lithium, with processing capacity scaling toward 270,000 tonnes per year. The firm is also pursuing alternative chemistries such as sodium‑ion batteries, which use more abundant materials and, the company says, can cut lifecycle carbon emissions per kilowatt‑hour by up to 60 percent.
The foundation’s account of CATL’s collaboration with recycling partner Brunp, and its wider strategy to map circular opportunities across the battery value chain, underlines how industrial scale and cross‑sector partnerships can accelerate circular outcomes. According to the foundation’s earlier reporting, CATL has deployed research centres and manufacturing bases internationally and joined the foundation’s network to help develop practical blueprints for circular battery systems.
For policy makers and commercial planners working on industrial decarbonisation, the report stresses that technical fixes alone will not deliver circularity. It calls for interoperable data systems and standards to enable traceability and fair remuneration for retained material value, plus targeted investment in regional processing and refurbishment infrastructure so that reuse and recycling happen close to demand. Financial mechanisms and procurement practices that recognise the asset value of batteries, leasing, service contracts and takeback obligations, are presented as essential to align incentives across manufacturers, fleet operators, recyclers and utilities.
The Ellen MacArthur Foundation frames the transition as urgent: “As EV adoption accelerates, a circular economy for batteries and critical minerals is no longer optional , it is essential to affordability, resilience, and long‑term growth while reducing environmental and social impacts,” said Wen‑Yu Weng, executive leader for critical minerals at the foundation. “EV batteries are strategic assets, and circular approaches are key to retaining their value and ensuring critical minerals never become waste.”
For businesses engaged in electrification and energy transition projects, the report offers a practical agenda: embed circularity at the design stage; re‑engineer service models to extend useful life; coordinate regional infrastructure investments; and support data and policy frameworks that make circular choices economically viable. Industry case studies in the foundation’s materials suggest those actions can reduce reliance on new mining, limit greenhouse gas emissions linked to battery production, and create new commercial opportunities in refurbishment, remanufacture and high‑value recycling.
Taken together, the foundation argues that aligning industrial strategy, capital deployment and regulation around these priorities could transform EV batteries from a rapidly growing waste liability into a resilient, lower‑carbon source of critical materials that supports both mobility decarbonisation and grid flexibility.
- https://wasterecyclingmag.ca/circular-economy/paper-sets-out-plans-to-integrate-ev-batteries-into-circular-economy – Please view link – unable to able to access data
- https://www.ellenmacarthurfoundation.org/circular-economy-for-ev-batteries-and-critical-minerals – The Ellen MacArthur Foundation’s report, ‘Leading the Charge – Turning risk into reward with a circular economy for EV batteries and critical minerals’, released on 16 January 2026, highlights the need for a circular economy in the electric vehicle (EV) battery sector. It outlines five key actions: designing batteries for circularity, rethinking battery service within optimized energy-mobility systems, building circular business models, investing in regional circular infrastructure, and enabling a circular operating system through data, standards, and policy. The report emphasizes that a circular approach is essential for reducing demand for newly mined materials, lowering emissions, and supporting renewable energy integration. It also aims to increase economic value by improving material efficiency, reducing waste, and creating new revenue streams, while enhancing supply chain resilience and promoting equitable economic benefits across regions.
- https://www.ellenmacarthurfoundation.org/press-release-circular-ev-battery-economy-turns-industry-risk-into-reward – The Ellen MacArthur Foundation’s press release, dated 20 January 2026, discusses the critical need for a circular economy in the electric vehicle (EV) battery sector. It highlights the risks associated with the current linear, material-intensive economy, including supply-demand gaps in critical minerals and environmental and social harms. The press release emphasizes that a circular approach can reduce these risks by maximizing value and minimizing waste. It outlines five leadership priorities to drive forward a circular EV battery economy: designing batteries for circularity, rethinking battery service within optimized energy-mobility systems, scaling circular business models, building regional circular infrastructure, and enabling a circular operating system through data, standards, and policy. The press release underscores the importance of coordinated action across product design, business models, and wider systems of infrastructure, finance, and policy to achieve a truly circular battery ecosystem.
- https://www.ellenmacarthurfoundation.org/redesigning-the-battery-value-chain-catl-brunp – The Ellen MacArthur Foundation’s article, published on 23 June 2025, explores the collaboration between Contemporary Amperex Technology Co. Limited (CATL) and Brunp Recycling (Brunp) to create a circular battery value chain. CATL, a global leader in battery manufacturing, and Brunp, the world’s largest battery recycling company, are working together to manage batteries as centrally managed assets, increasing utilization, enabling scheduled maintenance, and ensuring predictable return at end of use. The article highlights CATL’s recycling operations, which achieve recovery rates of 99.6% for nickel, cobalt, and manganese, and 96.5% for lithium, with processing capacity expanding toward 270,000 tonnes per year. The collaboration aims to build a circular battery value chain that, if scaled across the industry, could create new forms of value while reducing exposure to supply disruptions and material price volatility.
- https://www.ellenmacarthurfoundation.org/catl – The Ellen MacArthur Foundation’s profile on Contemporary Amperex Technology Co. Limited (CATL), published on 24 June 2025, provides an overview of the company’s role in the transition to a circular economy. CATL is a global leader in innovative new energy technologies, specializing in the research, development, and production of EV batteries and energy storage systems. The company promotes the transition from mobile and stationary fossil energy sources to renewable and resource-efficient alternatives. Headquartered in China, CATL has established six major research and development centres and 13 battery manufacturing bases worldwide, including in Germany and Hungary. In 2025, CATL became the first renewable technology leader to join the Ellen MacArthur Foundation’s Network as a Strategic Partner, aiming to map the circular economy opportunity for the entire battery value chain and build an ecosystem of cross-industrial partners to develop and implement a blueprint for battery circularity.
- https://www.ellenmacarthurfoundation.org/news/the-ellen-macarthur-foundation-welcomes-catl-as-a-strategic-partner – The Ellen MacArthur Foundation’s news article, dated 20 March 2025, announces the inclusion of Contemporary Amperex Technology Co. Limited (CATL) as the first renewable technology leader in its Network as a Strategic Partner. CATL, the world’s foremost producer of batteries for both electric vehicles and energy storage systems, is recognized for its expertise in establishing a truly circular battery industry and driving the circular economy of the wider energy transition. The article highlights the importance of sourcing critical minerals like lithium, cobalt, nickel, and rare earth elements, noting that this is set to become one of the most significant economic challenges of the 21st century. The rapid growth of renewable energy and electrification offers a unique chance to build circular value chains from the ground up, and CATL’s partnership is seen as a significant step in this direction.
- https://www.ellenmacarthurfoundation.org/news/groupe-renault-and-solvay-collaborate-to-create-a-circular-economy-for-ev – The Ellen MacArthur Foundation’s news article, published on 16 June 2021, discusses the collaboration between Groupe Renault, Solvay, and Veolia to create a circular economy for electric vehicle (EV) batteries. The consortium aims to collaborate across the battery value chain by collecting end-of-life batteries, recovering and purifying the metals, and reusing them in new batteries. The article emphasizes the need for systemic change and collaboration between all actors to achieve circularity, as advocated by the Foundation. It highlights that no single industry can achieve circularity alone, and such partnerships exemplify the importance of a collaborative approach to reinvent business models and close the loop of circularity.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references a report titled ‘Leading The Charge – Turning risk into reward with a circular economy for EV batteries and critical minerals’ released by the Ellen MacArthur Foundation on 20 January 2026. ([ellenmacarthurfoundation.org](https://www.ellenmacarthurfoundation.org/press-release-circular-ev-battery-economy-turns-industry-risk-into-reward?utm_source=openai)) The article was published on 24 January 2026, indicating timely reporting. However, the report was also published on 16 January 2026, suggesting that the article may have been based on a press release. ([ellenmacarthurfoundation.org](https://www.ellenmacarthurfoundation.org/circular-economy-for-ev-batteries-and-critical-minerals?utm_source=openai))
Quotes check
Score:
7
Notes:
The article includes direct quotes attributed to Wen-Yu Weng, Executive Leader for Critical Minerals at the Ellen MacArthur Foundation. A search for these quotes reveals that they are present in the press release dated 20 January 2026. ([ellenmacarthurfoundation.org](https://www.ellenmacarthurfoundation.org/press-release-circular-ev-battery-economy-turns-industry-risk-into-reward?utm_source=openai)) This suggests that the quotes may have been reused from the press release, raising concerns about originality.
Source reliability
Score:
9
Notes:
The article cites the Ellen MacArthur Foundation, a reputable organisation known for its work on the circular economy. However, the article appears to be based on a press release from the Foundation, which may limit the independence of the reporting. ([ellenmacarthurfoundation.org](https://www.ellenmacarthurfoundation.org/press-release-circular-ev-battery-economy-turns-industry-risk-into-reward?utm_source=openai))
Plausability check
Score:
8
Notes:
The claims made in the article align with the objectives of the Ellen MacArthur Foundation and the reported content of the press release. However, the reliance on a single source and the potential reuse of quotes from the press release raise questions about the depth and independence of the reporting.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article appears to be a derivative news report based on a press release from the Ellen MacArthur Foundation, with potential reuse of quotes and limited independent verification. These factors raise concerns about the originality and reliability of the reporting.
