With global lithium consumption forecast to quadruple from 390 kilotons in 2020 to 1,600 kilotons by 2026, the supply chain is under unprecedented strain.
Demand for lithium-ion batteries—driven by electric vehicles, stationary storage, and portable electronics—is set to grow at a compound annual rate of 13%, reaching an $87.5 billion market by 2027. Yet, Australia, home to some of the world’s largest hard rock lithium reserves, is also facing a looming waste problem. By 2035, the country could generate 137,000 tones of lithium battery waste annually, according to the Department of Industry, Science and Resources.
Research from Edith Cowan University (ECU) underscores that end-of-life batteries still retain nearly 80% of their lithium capacity when they are deemed unfit for electric vehicle use. This presents a sizeable opportunity for secondary recovery. Government projections estimate the domestic recycling sector could generate between $603 million and $3.1 billion annually within the next decade.
Compared to conventional mining, recycling offers a smaller environmental footprint, with reductions in land use, soil contamination, and greenhouse gas emissions. Australia’s mining industry itself may become a source of end-of-life batteries as it accelerates electrification of its fleets and operations, noted ECU lecturer Dr Muhammad Azhar. Recycled lithium also aligns with circular economy principles, cutting the ecological cost per tone of recovered material.
Infrastructure investment is essential to scale up recovery and processing facilities. Several Australian companies are exploring optimal approaches, but without regulatory clarity and coordinated national strategies, the recycling market risks falling short of its potential to offset primary extraction pressures.
