EU Regulation Raises Bar for Battery Recyclers

New standards push recyclers to prove metal recovery performance as competition for funding intensifies

22 Mar 2025

Europe’s battery industry is entering a new era, with major changes on the horizon. On March 21, 2025, the European Commission introduced groundbreaking regulations that are putting the pressure on electric vehicle (EV) battery recyclers. The stakes are high: millions in funding, lucrative supplier contracts, and leadership in a fast-growing, competitive market.

Under the new rules, recyclers must meet stringent targets for recovering critical metals like lithium, cobalt, and nickel using a standardized EU method. Companies will need to submit independently verified data every six months to demonstrate compliance with these recovery targets. It’s more than just adhering to rules; it’s a new business standard.

Some players are moving quickly to adjust, while others are facing setbacks. Belgium's Umicore, a major recycler, has delayed the launch of its new battery recycling plant, with operations now expected to start no earlier than 2032. In the meantime, the company is optimizing its current infrastructure to stay ahead of the evolving requirements.

German innovator Duesenfeld, on the other hand, is securing key partnerships, including one with ANDRITZ, and is showcasing its proprietary processes to rapidly scale up its capacity and meet EU benchmarks. Duesenfeld sees agility and innovation as key strategies to capture a larger share of the market.

The new regulations are backed by significant EU funding—€350 million earmarked for battery circularity through 2027. However, only companies that meet the new recovery standards will be eligible to access these funds, making compliance a crucial step toward securing financial support.

Automakers are also adapting. Stellantis, which had planned to partner with Orano in a battery recycling joint venture, decided in 2024 to pivot away from that specific partnership. Both companies have expressed interest in exploring other forms of collaboration that align with the new regulatory landscape.

“This is a turning point,” said one EU official. “We’re moving from good intentions to measurable outcomes. The innovators will lead the next phase of Europe’s green tech economy.”

However, not every company will be able to keep up with the changes. Smaller firms may struggle to afford the costly upgrades needed to meet the new standards. But overall, the new regulations are leveling the playing field, favoring the agile, the transparent, and the technologically advanced.

In the high-stakes race for battery recycling supremacy, the EU has set the stage. The winners will be those who see regulation not as an obstacle but as a springboard for innovation and growth.