Towards a Circular Value Chain of Cobalt – Study

Cobalt is an essential material for the global economy. The demand for cobalt is expected to grow significantly in the coming years. Implementing the principles of a circular economy can help to ensure this transition is sustainable and creates value for all stakeholders involved in the cobalt value chain.

The Cobalt Institute’s circular economy report provides a vision of a circular cobalt value chain capable of creating shared value for people and the planet. The report focuses on the key three areas in the cobalt value chain where most progress can be achieved to sustainably match supply with demand: cobalt extraction, use, and recycling.

Ten circular solutions that contribute to bringing each axis to life are presented according to their ability to create social and environmental benefits, as well as their feasibility and potential to offer tangible value for real world stakeholders.

Circular Economy Solutions

Regenerating Natural Systems via Zero Waste Cobalt Mining

  • Smart and Electrified Cobalt mining
  • CO2 sequestration via mine tailings
  • Remining – recovery of metal via the remediation of mining waste sites
  • Remediating mine sites with nature-based solutions

Regenerating Natural Systems via Zero Waste Cobalt Mining

The clean energy transition cannot rely solely on recycled materials, and primary metals like cobalt will be necessary for renewable energy generation and storage. Primary cobalt will need to make up most of the supply for battery storage until around 2040 when devices meet their end of life and become recyclable1. Given this pressing need for primary cobalt, the mining industry must play its part in building out a circular cobalt value chain.

Four innovative solutions – smart and electrified cobalt mining; CO2 sequestration via mine tailings; remining; and remediating mine sites with nature-based solutions - allow the cobalt mining industry to improve cobalt recovery and reduce its environmental impact, while also creating shared value for local communities and ASM miners. Ideally, all four solutions could help transform cobalt extraction to a zero waste mining industry that can help regenerate natural systems. While all four solutions in this axis improve the environmental performance of cobalt mines, remediating cobalt mines with nature-based solutions (NbS) has the greatest potential of social and environmental benefits.

1 (KU Leuven, 2022)

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Regenerating Natural Systems via Zero Waste Cobalt Mining

The clean energy transition cannot rely solely on recycled materials, and primary metals like cobalt will be necessary for renewable energy generation and storage. Primary cobalt will need to make up most of the supply for battery storage until around 2040 when devices meet their end of life and become recyclable1. Given this pressing need for primary cobalt, the mining industry must play its part in building out a circular cobalt value chain.

Four innovative solutions – smart and electrified cobalt mining; CO2 sequestration via mine tailings; remining; and remediating mine sites with nature-based solutions - allow the cobalt mining industry to improve cobalt recovery and reduce its environmental impact, while also creating shared value for local communities and ASM miners. Ideally, all four solutions could help transform cobalt extraction to a zero waste mining industry that can help regenerate natural systems. While all four solutions in this axis improve the environmental performance of cobalt mines, remediating cobalt mines with nature-based solutions (NbS) has the greatest potential of social and environmental benefits.

1 (KU Leuven, 2022)

Maximising Resource Value by Extending the Life of Cobalt Products

  • Life extenstion by design in NMC batteries
  • Battery Repurposing
  • Battery Remanufacturing

Maximising Resource Value by Extending the Life of Cobalt Products

Cobalt helps in extending the lifecycle of NMC batteries thanks to its exceptional thermal stability, and in alloys cobalt provides corrosion resistance and strength at high temperature, again extending design life. However, the resource is currently facing supply risks and high price volatility1. In the future, cobalt demand is expected to rise due to the deployment of electric vehicles batteries, leading car manufacturers and battery producers to adopt new strategies to mitigate these risks, while generating environmental and social benefits.

Three innovative circular solutions – battery life extension by design; battery repurposing; and battery remanufacturing – can help alleviate tensions on cobalt production. They can considerably reduce environmental pressures such as greenhouse gas emission and the pollution of land, soil, and water bodies. Battery life extension by design appears as the most impactful and feasible solution.

1 (KU Leuven, 2022)

P

Maximising Resource Value by Extending the Life of Cobalt Products

Cobalt helps in extending the lifecycle of NMC batteries thanks to its exceptional thermal stability, and in alloys cobalt provides corrosion resistance and strength at high temperature, again extending design life. However, the resource is currently facing supply risks and high price volatility1. In the future, cobalt demand is expected to rise due to the deployment of electric vehicles batteries, leading car manufacturers and battery producers to adopt new strategies to mitigate these risks, while generating environmental and social benefits.

Three innovative circular solutions – battery life extension by design; battery repurposing; and battery remanufacturing – can help alleviate tensions on cobalt production. They can considerably reduce environmental pressures such as greenhouse gas emission and the pollution of land, soil, and water bodies. Battery life extension by design appears as the most impactful and feasible solution.

1 (KU Leuven, 2022)

Designing out Waste and Pollution through Integrated Battery Design and Recycling

  • Use of recycled cobalt in battery design
  • Collection, sorting and recycling optimisation
  • Battery as a service and other battery return schemes

Designing out Waste and Pollution through Integrated Battery Design and Recycling

The increasing amount of retired EVs and electronics has led to a corresponding rise in the number of end-of-life batteries. This, in turn, has become a significant environmental concern as the disposal of these batteries and e-waste is causing soil contamination and water pollution.

However, batteries and electronic waste can provide a valuable secondary resource as they contain elements and materials crucial for the manufacturing of EV batteries. Recycling these materials can potentially limit the reliance on imports from foreign primary markets, reduce the need for new conventional mines or increased mining intensity, and mitigate the negative environmental impacts associated with the disposal of end-of-life batteries.

The three solutions in this axis – use of recycled cobalt in battery design; collection, sorting, and recycling optimization; and battery as a service and other battery return schemes – can integrate circularity into the last stage of the cobalt value chain through collection and recycling of e-waste and EV batteries. While all solutions reduce environmental and social pressures related to e-waste and battery disposal, collection, sorting and recycling optimisation appears to be the most feasible and impactful solution.

P

Designing out Waste and Pollution through Integrated Battery Design and Recycling

The increasing amount of retired EVs and electronics has led to a corresponding rise in the number of end-of-life batteries. This, in turn, has become a significant environmental concern as the disposal of these batteries and e-waste is causing soil contamination and water pollution.

However, batteries and electronic waste can provide a valuable secondary resource as they contain elements and materials crucial for the manufacturing of EV batteries. Recycling these materials can potentially limit the reliance on imports from foreign primary markets, reduce the need for new conventional mines or increased mining intensity, and mitigate the negative environmental impacts associated with the disposal of end-of-life batteries.

The three solutions in this axis – use of recycled cobalt in battery design; collection, sorting, and recycling optimization; and battery as a service and other battery return schemes – can integrate circularity into the last stage of the cobalt value chain through collection and recycling of e-waste and EV batteries. While all solutions reduce environmental and social pressures related to e-waste and battery disposal, collection, sorting and recycling optimisation appears to be the most feasible and impactful solution.

The need to grow cobalt stocks within the global economy within the medium term means that stakeholders must expand their vision of circularity beyond simply recycling.

Key recommended actions:

1. Design and Implement new policies

  • National mining codes and assaying requirements should be updated to promote best practices in mine waste valorisation
  • Stronger policies are needed to enable safe and sustainable battery re-use
  • Consumer protection regulations and product standards (such as the EU battery regulation) are important mechanisms to promote eco-design of durable and sustainable cobalt containing products
  • International collaboration between cobalt production and cobalt consuming countries will be essential to ensure circularity at each stage in the value chain, in line within international biodiversity and climate goals

2. Eliminate waste at extraction and end-of-life

  • Tackle feedstock complexity with improved ore and battery sorting
  • Strive to recover all by-product materials at the mine and recycling plant
  • Improved cobalt recovery from mine and battery waste should happen with respect for the rights of workers in both the formal and informal economy
  • Improve collection schemes of e-waste to capture significant value

3. Maximise the value of cobalt use

  • Design durable cobalt products to reduce environmental pressures
  • Battery design should incorporate trade-offs between easy dismantling and battery performance
  • Adapt to a rapidly evolving and growing market for battery repurposing

4. Explore new business models

  • Tailings should no longer be considered as waste with a cost, but rather by-products capable of generating value
  • Battery as a Service and other battery rental schemes can create shared value for OEMs and consumers, while also enabling repurposing and recycling
  • As the increasing amounts of cobalt containing products reach their end-of-life in coming decades, cobalt refiners can drive circularity by transitioning from primary to secondary cobalt feedstocks

5. Use data to unlock circular opportunities

  • Gather and share open-source data related to tailings composition and suitability for reprocessing or mineral carbonation
  • There is a need for clear comparative metrics on the performance of different battery chemistries during their in-use phase
  • Traceability across primary and secondary cobalt supply chains, along with information about battery health can promote circularity

Read the report “Towards a Circular Value Chain of Cobalt”

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