To create a truly circular battery value chain, it will be necessary for new cell production to break its reliance on virgin raw materials. CATL and the Ellen MacArthur Foundation say this shift is essential to ensuring long-term supply security while reducing the environmental footprint of battery manufacturing.
Since forming their strategic partnership earlier this year, CATL and the Ellen MacArthur Foundation have been working together to map how circular economy principles can be applied across the battery value chain. The aim is to guide not only CATL but also a broad community of global stakeholders seeking to redesign the system for long-term success.
Decouple 50% of new battery production from virgin raw materials
The ambition was introduced by Jiang Li, vice president and Board Secretary of CATL at a high-level panel at London Climate Action Week hosted by the Ellen MacArthur Foundation. The panel explored how stakeholders across research, industry, and government can work together to bring this ambition to life — and to identify what is needed to achieve it at scale.
Since forming their strategic partnership earlier this year, CATL and the Ellen MacArthur Foundation have been working together to map how circular economy principles can be applied across the battery value chain. The aim is to guide not only CATL but also a broad community of global stakeholders seeking to redesign the system for long-term success.
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The ambition was introduced by Jiang Li, vice president and board secretary of CATL, during a high-level panel at London Climate Action Week hosted by the Ellen MacArthur Foundation. The panel explored how stakeholders across research, industry and government can work together to bring this ambition to life – and identify what is needed to achieve it at scale.
Four principles to guide industry transformation
At the heart of this ambition are four practical principles, adapted from the Ellen MacArthur Foundation’s circular economy framework. These principles are intended to guide transformation across the battery value chain – from mining and manufacturing to mobility and energy systems. They serve as a foundation for building alignment with key stakeholders and developing collaborative actions to accelerate the shift toward a more circular battery economy.
Rethinking systems: A circular approach requires systemic change across the battery ecosystem. Embedding circularity at each stage of the value chain makes it possible to support low-carbon development, reduce waste and enable the continuous flow of materials. This principle emphasises optimising the structure and interactions of the value chain to ensure more efficient and resilient use of resources.
Redesigning products: Circularity begins at the design stage. Batteries must be built for longevity, disassembly and second-life applications – using modular architecture and durable components. Designing with reuse and recycling in mind ensures that products retain value for longer and can be recovered more efficiently at end of life.
Rethinking business models: New business models are essential to decoupling resource use from economic growth. Shifting from traditional ownership to shared, service-based or second-life models allows batteries to deliver greater utility and become more accessible to users. This principle supports the creation of economically viable pathways for circularity to scale.
Recycling materials: A high-performing recycling system is essential to circularity. Materials must be recovered efficiently and returned to high-value use, increasing the proportion of closed-loop recycling. This reduces dependence on virgin resources and helps establish a more sustainable, secure and low-impact supply of critical raw materials.
Examples of implementation
Jiang Li also shared examples of CATL’s implementation of the four pillars.
At system level, CATL launched its Carbon Chain Management System to help decarbonize the battery value chain.
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In product design, CATL has extended battery lifespan significantly – its energy storage batteries now reach up to 18,000 cycles, reducing both materials demand and emissions.
CATL also plans to deploy over 10,000 battery swap stations, improving battery efficiency and facilitating large-scale collection of retired batteries. In recycling, CATL operates the world’s largest battery take-back network and in 2024 alone recycled around 130,000 tons of end-of-life batteries, recovering 17,000 tons of lithium salts.
Piloting change through GECC
To test and expand upon the shared ambition in real-world conditions, CATL is advancing the Global Energy Circularity Commitment (GECC). Announced in March, GECC is an open, global platform where stakeholders from industry, cities and academia come together to test circular economy solutions in practice. Through this platform, CATL aims to work with actors across the value chain, exploring and sharing insights to help scale impact. This collective approach is key to building a resilient and sustainable battery system.
Looking ahead
This shared ambition is a starting point – a foundation for building new forms of collaboration, transparency and systems innovation across the global battery landscape. CATL and the Ellen MacArthur Foundation will continue to engage with public- and private-sector partners to refine, expand and operationalise the ideas set out here.
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“The circular battery system won’t be built in a lab or a boardroom – it will be shaped through collaboration, testing, and shared effort,” said Jiang Li. “This ambition is a signal to help drive that work forward. Achieving it will require global collaboration, cross-sector learning and open engagement across the value chain – all of which the Ellen MacArthur Foundation has long championed.” (hcn)
