Copper and batteries : Challenges and levers for a closed-loop recycling industry of critical metals in Europe

The transition to electromobility is driving up demand for critical metals, particularly for batteries, raising challenges related to availability, sovereignty, and environmental responsibility. Additionally, copper, whose presence in vehicles has quadrupled over the past 20 years, plays a key role in the automotive industry and is a strategic issue for steel recycling. Recycling constitutes a key lever to address these challenges. In this context, the EU has set ambitious targets through the Critical Raw Materials Act (25% domestic recycling) and the Battery Regulation (mandatory incorporation of recycled materials from 2031).

However, the European battery recycling industry is confronted with several roadblocks: a lack of competitiveness, limited industrial capacity, uncertainty over input volumes and future clients, and the profitability of closed-loop models. The upscaling of a European recycling ecosystem is conditioned to a predictable and competitive regulatory and economic framework that attracts investment and coordinates key players (pCAM, CAM, gigafactories, recyclers).

Copper recycling also echoes IMT’s Green Steel project, as copper is a contaminant that limits the quality of recycled steel. Enhancing its recovery can strengthen the circularity of critical materials and contribute to the emergence of a more resilient and sustainable European industry.