Recycled EV Batteries Match New in US Pilot Breakthrough

California-backed project finds recycled cathodes equal virgin capacity and exceed 99% purity

11 Feb 2026

A California-backed pilot project has shown that recycled electric vehicle battery materials can match the performance of new components, marking a step towards a more domestic and resilient US supply chain.

Supported by the California Energy Commission and based on research from the University of California San Diego, the initiative focuses on “direct recycling”. Rather than breaking down used batteries into raw metals through smelting or chemical processing, the method separates and restores key components so they can be reused in new batteries.

According to a report published by the California Energy Commission, recycled cathode materials achieved capacity performance equivalent to virgin materials in testing, with purity levels above 99 per cent and overall material recovery rates exceeding 90 per cent.

Cathodes account for a large share of battery costs and energy use in production. Restoring them in their existing structure reduces processing steps and lowers energy consumption, potentially cutting costs compared with rebuilding materials from elemental metals.

The findings also highlight differences between recycling approaches. Companies including Redwood Materials have reported recovery rates of about 95 per cent for key metals using conventional processes that reduce batteries to their basic elements. The California pilot instead preserves and rejuvenates cathode structures, avoiding the need to recreate them from scratch.

The results come as federal incentives increasingly favour domestically sourced battery materials and as rising EV adoption is expected to generate a growing volume of end-of-life batteries over the next decade. Demonstrating that recycled materials can match the performance of new ones is likely to influence procurement decisions by carmakers and battery manufacturers.

Challenges remain. Battery chemistries and designs vary, and the quality of used batteries can differ widely. Manufacturers are likely to demand consistent standards and quality controls before adopting recycled components at scale.

The move from laboratory testing to multi-kilogram pilot production suggests progress towards commercialisation. Whether direct recycling can deliver reliable cost and performance advantages at industrial scale will shape its role in the next phase of US battery manufacturing.