Battery Recycling Emerges as a Key Piece of the US EV Puzzle

New US battery recycling plants signal a shift toward domestic materials, though cost and risk impacts remain closely watched

9 Jan 2026

A gradual but significant change is under way in the US electric vehicle industry as battery recycling moves from a niche activity to a more central part of domestic supply chains.

The shift was highlighted in late 2024 with the opening of Green Li-ion’s commercial battery recycling facility in Oklahoma. Reported by industry publications including Manufacturing Dive and Recycling Today, the plant uses advanced processes to recover lithium, nickel and cobalt at a quality suitable for reuse in new batteries. Analysts say the project signals progress towards full material recovery at commercial scale in the US.

Battery makers in the US have traditionally depended on overseas processors to refine critical minerals, particularly in Asia. That reliance has raised concerns about supply chain resilience, transport emissions and exposure to geopolitical tensions. Expanding domestic recycling capacity is seen as one way to keep more materials within North America and reduce those risks.

The push comes as demand for batteries continues to rise, driven by growing EV sales, grid-scale energy storage projects and federal incentives that favour domestically sourced components. Recycled materials are increasingly viewed as a supplementary supply that could support long-term planning, even if volumes remain limited.

Automakers and battery producers have publicly stressed the importance of localising supply chains, including upstream processing and recycling. While groups such as General Motors and LG Energy Solution have not tied procurement strategies to specific recycling plants, their broader focus on domestic sourcing has drawn attention to recycled inputs as part of a diversified materials strategy.

Significant hurdles remain. Recycling facilities require large upfront investment, while the supply of end-of-life EV batteries is only beginning to scale. Regulatory approvals and environmental compliance can also slow expansion, limiting near-term impact.

Industry expectations therefore remain cautious. Still, as more plants are built and technologies mature, battery waste is increasingly seen as a strategic resource rather than a disposal problem. The role of recycling in the US battery supply chainis expanding, even as its full economic effect is yet to be tested.