Battery Recycling May Finally Make Economic Sense

Monash scientists develop a solvent process that recycles key battery metals at lower cost and energy use

28 Jan 2026

The rapid expansion of electric vehicles and grid-scale energy storage is intensifying pressure on global battery supply chains, raising questions about how the industry will manage growing volumes of spent lithium-ion cells. Recycling, long viewed as necessary but expensive, has struggled to compete with newly mined materials. Researchers at Monash University now say a new approach could begin to change that balance.

The challenge is rooted in scale and complexity. While mining output of battery minerals continues to rise, recycling processes often require high temperatures or aggressive chemicals, making them energy-intensive and costly. Those hurdles have limited the sector’s ability to absorb the growing stream of used batteries, even as concerns mount over long-term material security and waste management.

In research published in the journal Sustainable Materials and Technologies, a Monash team led by Dr. Parama Chakraborty Banerjee, with doctoral researcher Parisa Biniaz, described a solvent-based process designed to recover lithium, nickel, cobalt and manganese under relatively mild conditions. According to the researchers, the solvent is engineered to selectively extract specific metals, reducing the co-extraction of unwanted components. That selectivity, they suggested, could lower downstream processing needs and overall energy use, particularly as recycling facilities increasingly encounter batteries with mixed chemistries.

The work points to broader industrial and strategic implications, though its impact remains prospective. Recycling operators could eventually handle a wider range of battery types without extensive sorting, improving efficiency. Battery manufacturers, according to analysts, may benefit if recovered metals meet quality standards suitable for reuse, easing reliance on freshly mined inputs during periods of rising demand.

For Australia, the research carries added significance. Despite its role as a major supplier of battery minerals, the country captures relatively little value beyond extraction. Advanced recycling technologies are increasingly seen by policymakers as a way to strengthen domestic supply chains more quickly than developing new mines or refineries, reframing recycling as essential infrastructure rather than a peripheral waste issue.

Commercial deployment, however, is still some distance away. Moving from laboratory results to industrial operations will require investment, pilot projects and long-term performance data. Still, the findings underscore a broader shift: battery recycling is beginning to be viewed not just as a regulatory requirement, but as a potential competitive advantage that could influence how the battery industry evolves in the years ahead.