Can Lithium Recycling Fuel America’s EV Future?

New tech from ABTC extracts lithium from old batteries, cutting costs and boosting U.S. supply chain security.

23 Jul 2025

America’s dependence on foreign lithium may soon be reduced, not by mining more, but by mining smarter. A novel recycling technique developed by American Battery Technology Company (ABTC), with backing from the Department of Energy (DOE), promises to reclaim lithium from used batteries and feed it back into the country’s electric vehicle (EV) supply chain.

The process, developed in collaboration with Argonne National Laboratory and supported by a $1m federal grant, can recover battery-grade lithium hydroxide from a range of battery chemistries. That sidesteps both the environmental toll of mining and the strategic risks of shipping waste overseas. It also fits neatly into broader US efforts to localise production and decarbonise transport.

ABTC’s chief executive described the funding as a vote of confidence in American materials leadership. DOE officials praised the technology’s alignment with federal goals to secure domestic supply chains and lower environmental impact.

Recognition has already begun. In June, the company won the Voltas Award at the Fastmarkets Lithium Supply and Battery Raw Materials conference, an industry nod to its progress in recycling and reuse.

The need is pressing. As EV sales climb, automakers face volatile material costs and geopolitical uncertainty over mineral access. A domestic recycling loop could insulate US manufacturers while shrinking waste. One analyst called it a step toward a “circular battery economy”, where metals remain in productive use instead of ending up in landfills.

Challenges remain. The company must scale its operations and secure steady supplies of spent batteries. But early federal support and recent accolades suggest Washington sees promise. If successful, the project could become a cornerstone of US clean-tech infrastructure.

The broader aim is resilience. As manufacturers pivot to regionalised sourcing strategies, repurposing waste into supply may prove more than a green gesture. It could be a competitive advantage.