A Circular Economy for Lithium-Ion Batteries Used in Mobile and Stationary Energy Storage: Drivers, Barriers, Enablers, and U.S. Policy Considerations

This report examines the circular economy concept as it pertains to lithium-ion batteries used in mobile and stationary energy storage applications. The objective is to identify the drivers, barriers, and enablers influencing the adoption of circular economy principles within the context of lithium-ion battery lifecycle management, focusing on U.S. policy considerations. The methodology employed includes a comprehensive review of existing literature and regulatory frameworks, coupled with insights gathered from key stakeholders through interviews. The findings reveal a complex interplay of economic, technical, and regulatory factors that both facilitate and impede the transition to a circular economy for lithium-ion batteries. Significant drivers include the increasing demand for energy storage solutions and the necessity for sustainable waste management practices. However, barriers such as regulatory uncertainties, economic viability, and technological readiness pose challenges. Key enablers identified include policy incentives, technological advancements, and stakeholder collaboration. The paper concludes with recommendations for enhancing U.S. policies to effectively promote a circular economy in the lithium-ion battery sector.