AI, EV boom creating new waste problem: what happens to a…

The rise of EVs, AI data centers and grid storage is driving a surge in lithium batteries. Experts say recycling them will be key to avoiding environmental risks and recovering valuable minerals.

The technologies powering the clean-energy transition, from electric vehicles to artificial intelligence data centers, all rely on lithium-ion batteries. Experts say the rapid growth of those technologies is creating a new challenge: What happens when millions of batteries reach the end of their life? “It’s huge,” said David Klanecky, president and CEO of battery recycling company Cirba Solutions.

“If you fast forward five years from now, it’s probably in the billion pounds of batteries that will need to be recycled.” Cirba Solutions, headquartered in Charlotte, processes tens of millions of pounds of batteries each year. Klanecky said the company currently recycles between 50 million and 60 million pounds annually, a number he expects to grow dramatically. “We process today anywhere from 50 to 60 million pounds,” Klanecky said.

“If you look at projections around 2029 to 2030, it’s around a billion pounds of batteries.” Lithium-ion batteries power everything from phones and laptops to electric vehicles, power tools and large energy storage systems. They also contain valuable metals such as lithium, nickel and cobalt that can be recovered and reused. “They have valuable metals in them that can be recovered,” Klanecky said.

“But there’s also a hazardous aspect to them. You don’t want to just put those in your trash and have them end up in a landfill.” Inside the battery is an electrolyte solvent and other chemicals that could pose environmental risks if improperly disposed. “You don’t really want that in a landfill that could potentially leach out into a drinking water source,” Klanecky said. Fire officials in North Carolina have also warned about the dangers of lithium-ion batteries in trash or recycling streams.

In Durham, firefighters have responded to waste truck fires caused by batteries that were thrown away instead of recycled. Recycling lithium batteries involves a complex process that starts long before the batteries reach a recycling plant. Companies collect batteries from electronics, electric vehicles and manufacturers, then transport them safely to specialized facilities. An electric vehicle battery pack, for example, must be opened and broken down into smaller modules and individual battery cells before processing.

Those components are then shredded and separated so valuable materials can be recovered. “The valuable metals that are in that battery are the anode and the cathode material,” Klanecky said. “That’s where the lithium, nickel and cobalt reside.” Recycling facilities recover those metals along with materials such as copper, aluminum and plastic so they can be reused. Most electric vehicle batteries last about eight to ten years, depending on how they are used.

That means the first generation of modern EV batteries is just now beginning to reach the end of its life. “You’re seeing now some of the vehicles from around 2010 to 2015 starting to come off the road,” Klanecky said. At the same time, demand for batteries is expanding rapidly beyond electric cars. Energy storage projects paired with solar and wind farms use large battery systems, and data centers powering artificial intelligence rely on batteries to store energy and manage electricity demand.

“One solution data centers use is battery systems so they can store a lot of energy on site,” Klanecky said. “They can charge those batteries at night and use them during the day.” Electric vehicle batteries often still have significant capacity remaining when they are removed from a car. “There’s a lot of work being done on taking EV batteries and using them as a second use to store energy,” Klanecky said.

However, the economics and technical challenges of repurposing batteries can make second-life applications difficult. Experts say battery recycling could become an increasingly important part of the clean-energy supply chain. Recovered metals can be used to manufacture new batteries, reducing the need for mining and helping create a domestic source of critical minerals. “If we can close the loop of these critical minerals for batteries, the cost is going to be lower for consumers,” Klanecky said.

As battery demand continues to grow, recycling companies say building that circular supply chain will be essential to powering the next phase of the clean-energy transition.

Summary

This report covers the latest developments in artificial intelligence. The information presented highlights key changes and updates that are relevant to those following this topic.

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