Economic pressures, regulatory changes, and feedstock shortages test the resilience of battery recyclers across the USA.

President Trump’s policies threaten EV demand by eliminating the US$7,500 tax credit and easing fuel-economy rules. Energy storage developers must break ground by year-end or comply with new supply chain rules that exclude batteries with components from “foreign entities of concern” (including China). Lower EV production and sales reduce recycler feedstock, leading to less production scrap in the short term and fewer EoL batteries in the long term. In addition, recyclers face volatile economics, as battery metal prices swing sharply.

Under this scenario, several notable company developments have taken place in recent months. In September 2025, Ascend Elements achieved a milestone by producing recycled lithium carbonate on a commercial scale for the first time. This came after the company cancelled a US$164M cathode active material (CAM) grant with the US Department of Energy, although its precursor CAM (pCAM) funding remains active. Earlier in May, its joint-venture discussions with SK ecoplant also came to an end.

Meanwhile, Glencore expanded its presence in the recycling sector by acquiring Li-Cycle’s US assets in August. The Rochester “Hub” and other related facilities were transferred to Glencore Battery Recycling, consolidating control of these operations under the commodity giant.

Also in August, Princeton NuEnergy announced the commissioning of its new 5ktpy advanced black-mass processing facility in South Carolina, marking a step forward in domestic recycling capacity.

Redwood Materials, for its part, has pursued partnerships with General Motors (GM). In July, it signed an agreement to deploy energy storage batteries using both new and second-life sources. This agreement builds on a partnership established in May, in which Redwood Materials agreed to recycle production scrap from GM’s facilities in Ohio and Tennessee.

These developments underscore the capital-intensive nature of hydrometallurgical refining, with Li-Cycle being an important example. They also highlight a growing focus on second-life applications as reuse and repurposing provide monetisation opportunities ahead of full material recovery, helping to smooth feedstock shortages and price cycles.

Recycling is a critical step in the circular value and supply chain for the lithium-ion battery sector. The requirement to recover materials from end-of-life batteries will continue to drive this industry and future projections.

Use our Battery and Recycling Research Service to understand the rapidly evolving recycling industry and to track changes in capacity, process capability, technological advancements, and policy.

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