How Can Europe Reduce Its Strategic Dependencies by Boosting Recycling?

When black mass—a fine, soot-like residue from shredded lithium-ion batteries—leaves European ports bound for Southeast Asia, it’s not just waste being shipped. It’s opportunity, security, and sovereignty leaving with it. Europe collects over 90% of its end-of-life batteries, yet fails to capture the full value of what’s inside. Instead, this resource-rich material is exported, refined abroad, and often returned as imported raw materials—fueling a cycle of strategic dependency the continent can no longer afford.

The stakes couldn’t be higher. As Europe accelerates its shift from fossil fuels to electrified transport and renewable energy, demand for critical minerals like lithium and aluminium is soaring. Unlike oil, these materials can be recycled indefinitely—making recycling not just an environmental imperative, but an economic and geopolitical one. Yet today, the EU imports nearly all its lithium and a significant share of its refined aluminium, while sitting on a domestic treasure trove of recyclable waste.

By 2035, scaling recycling capacity in Europe could eliminate the need to import more than 80,000 metric tonnes of lithium—enough to power approximately 2.5 million electric vehicles. For aluminium, the potential is even greater: 3 million metric tonnes of imports could be avoided by 2040 through enhanced recycling. These aren’t distant projections—they’re actionable targets, if Europe chooses to act.

But the path forward is blocked by systemic gaps. Over half of Europe’s planned battery recycling capacity is currently at risk, starved of feedstock and undercut by cheaper exports. Recyclers struggle under complex cross-border regulations—such as differing paperwork requirements between member states, including something as trivial as the color of ink used on forms—slowing the flow of scrap and driving up costs. Meanwhile, the midstream segment of the battery value chain, including cathode active materials (pCAM), remains largely offshored, depriving recyclers of local buyers for their output.

The solution lies in policy with teeth. The upcoming Circular Economy Act must mandate that black mass and other critical waste streams remain within Europe unless processed by EU-owned facilities abroad or proven to benefit the European battery ecosystem. The Waste Shipment Regulation should be reformed to create a true single market for waste, simplifying movement between member states without compromising safety. And crucially, recycled content targets in the EU Batteries Regulation must count only materials processed on home soil—sending a clear signal to investors and innovators.

Europe already sees the value in its waste. Now, it must act like it does. With the right framework, the continent can turn discarded batteries and scrap metal into the foundation of a resilient, self-sufficient clean economy. The materials for energy independence aren’t buried in foreign mines—they’re already here, waiting in plain sight.