Why OEMs need a battery recycling strategy in 2025

The Increasing Need for Manufacturers to Develop Long-Term Recycling Plans

The End of “Make and Forget”

For decades, OEMs in the automotive and electronics industries operated under a linear model: produce, sell, move on. But in 2025, this model no longer fits the regulatory, economic, or environmental realities facing manufacturers. As electrification accelerates, particularly in the mobility sector, the responsibility for what happens to an OEM battery after use is shifting squarely onto the shoulders of its producer.

The rise of electric vehicles, energy storage systems, and battery-powered industrial tools is generating an unprecedented wave of end-of-life batteries. Regulators, customers, and investors are now demanding clear, measurable strategies from OEMs to ensure that these batteries are collected, repurposed when possible, and recycled in line with circular economy principles. Developing a robust battery recycling strategy is no longer an optional CSR initiative — it is a legal and strategic imperative.

Regulatory Pressure Is Mounting

Across Europe and beyond, new battery regulations are reshaping the responsibilities of OEMs. Under the 2025 EU Battery Regulation, manufacturers must comply with strict rules on collection rates, material recovery targets, and carbon footprint disclosure. Traceability becomes mandatory, and each OEM battery must be tracked throughout its entire lifecycle. Failing to comply doesn’t just lead to financial penalties — it can also mean losing access to key markets.

For global OEMs, navigating this evolving landscape requires more than short-term fixes. It demands a long-term recycling roadmap that anticipates regulatory shifts, builds resilience into supply chains, and aligns with sustainability goals. The earlier manufacturers act, the more control they have over cost, compliance, and reputation.

Batteries as a Strategic Resource

In addition to compliance, there is a strong economic argument for developing a recycling strategy. The raw materials used in OEM batteries — lithium, cobalt, nickel, and copper — are increasingly expensive and subject to supply chain disruptions. By investing in closed-loop systems, OEMs can secure a portion of their own future material supply, reducing exposure to market volatility and geopolitical risk.

A structured recycling plan enables manufacturers to recover valuable materials from end-of-life batteries, reinject them into production, and reduce dependency on virgin resources. This circular approach strengthens internal sustainability metrics, appeals to environmentally conscious customers, and prepares OEMs for stricter ESG reporting obligations.

Beyond Recycling: Designing for Disassembly and Reuse

An effective OEM battery strategy in 2025 doesn’t stop at recycling. It starts much earlier — with design. Manufacturers that build batteries with end-of-life in mind can drastically reduce recycling costs and increase material recovery rates. This includes making batteries easier to dismantle, standardizing components, and avoiding complex adhesives or welds that slow down disassembly.

Some forward-looking OEMs are already integrating reuse and repurposing into their strategy. Before a battery is recycled, it can often serve a second life in less demanding applications, such as stationary energy storage or backup systems. Factoring this into the recycling plan creates new business models, extends asset value, and contributes to a truly circular battery ecosystem.

Collaboration Will Define the Leaders

No OEM can do it alone. Meeting recycling obligations and closing the battery loop requires collaboration with recyclers, automation providers, software platforms, and logistics partners. The most resilient OEMs in 2025 will be those who proactively build these partnerships — not just for compliance, but to lead the industry transition.

Whether through joint ventures, long-term contracts, or digital integration, collaboration allows OEMs to ensure safe battery recovery, secure access to recycled materials, and gain real-time data to support reporting and traceability.

Conclusion

As the regulatory and environmental landscape evolves, OEMs face a defining moment. A long-term battery recycling strategy is no longer a future investment — it is a 2025 requirement. From compliance and supply security to sustainability and customer trust, every aspect of an OEM’s performance now intersects with how it manages its batteries at end of life.

At Circu Li-ion, we support OEMs in building the infrastructure and partnerships they need to meet these challenges. Our automated disassembly technologies and circularity services help turn OEM batteries from waste into opportunity — safely, scalably, and sustainably. Reach out to learn how we can support your 2025 battery strategy.