New battery recycling facilities are coming online with the goal of turning used packs into a stable source of critical materials. Operators say improved recovery rates and local processing can reduce cost volatility for EV manufacturers.

Automakers are negotiating long-term contracts to secure recycled nickel, lithium, and cobalt while meeting sustainability targets. Analysts said recycled supply will not replace mining in the short term, but it can provide a meaningful buffer as volumes scale.

The industry’s challenge is collection: building systems that safely transport and disassemble batteries at the pace the market needs.