China sends worn-out EV batteries straight to the shredder, while the US gives them a second life

Many electric vehicle batteries remain useful even after they are no longer well-suited for long-distance driving. As more of these packs age out of their original role, governments and companies are deciding whether to recycle them immediately or keep them working in other capacities for a few more years.

China and the United States are diverging sharply on that choice, and the gap could affect EV prices, grid stability, and the cost of energy storage.

What's happening?

A large group of early EV batteries is nearing the end of its time on the road. As Rest of World reported, China has recently moved away from promoting second-life reuse and toward shredding old packs to recover their metals.

Since April 1, the rules have prioritized metal recovery. Spent EV batteries still contain materials of significant value, including lithium, nickel, and cobalt.

"Many countries without lithium resources are seeing end-of-life batteries as a potential source of lithium to be more self-sufficient," Adam Megginson, principal analyst at Benchmark Mineral Intelligence, said, according to Rest of World. He described it as "a kind of urban mining."

In the U.S. and Europe, companies and policymakers have generally been more open to repurposing these batteries before taking them apart. A pack that no longer delivers a strong driving range in a vehicle can still store electricity for warehouses and the power grid.

Part of the reason China views the issue differently is that many of its EVs run on lithium-iron-phosphate batteries. Those batteries are cheaper and contain fewer high-value metals, making recycling less profitable unless regulation strongly pushes it.

Why does it matter?

The way old EV batteries are handled could influence both the price of future electric vehicles and the affordability of storing solar and wind power for later use.

Giving aging batteries a second life on the grid can also help support the power system.

Recycling is still crucial because the materials inside batteries are limited, expensive, and heavily contested worldwide. Cobalt and nickel remain especially valuable, and lithium continues to be a major strategic resource.

Pulling those materials out of retired batteries can cut demand for new mining and help steady supply chains.

Rest of World noted that Beatrice Browning, battery recycling technology lead at Benchmark Mineral Intelligence, summarized one of the main complications: "The cheaper the battery, the less economic it is to recycle. And with cheaper batteries comes more reliance on regulation to mandate their recycling."

What's being done?

In the U.S., second-life battery projects are already moving past the idea stage.

As Rest of World reported, Waymo recently reached an agreement to send its used nickel-and-cobalt batteries to B2U Storage Solutions for energy storage projects in California and Texas.

That approach can extend a battery's working life by another five to 10 years before recycling. B2U CEO Freeman Hall said: "By extending the use of these batteries as grid storage, we are monetizing the full potential of EV batteries, now providing crucial stability to the power grid as energy demand continues to grow."

Europe is also putting its policy framework in place, with higher lithium recovery requirements and minimum recycled-content standards for new batteries that increase over time. China, meanwhile, is using battery tracking and producer-take-back rules to ensure old packs reach recyclers.

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