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Canada’s EV Battery Recycling Needs Urgent Action

  • Writer: Christian Poole
    Christian Poole
  • Aug 21
  • 2 min read

As electric vehicle (EV) adoption continues to rise across Canada, a critical piece for sustainability remains unsolved: EV battery recycling. With over 600,000 EVs currently on the road in Canada, and the government aiming for 100% zero-emission vehicle sales by 2035, end-of-life battery management is becoming urgent.


a cartoon like electric vehicle plugged into a charging station

Read more details in the in-depth article “Canada’s Lack of Action in the Evolving EV Battery Recycling Landscape,” by Lucas Bettle.

Why EV Battery Recycling Matters in Canada


a pile of dirty old car batteries

  • More EVs = More Waste: At least 93,000 EV batteries in Canada will need recycling by 2040, rising to 500,000 by 2045.

  • Valuable Materials: Batteries contain lithium, nickel, and cobalt. These minerals are essential to making new batteries.

  • Second-Life Use: Batteries retain 80% of their capacity after vehicle use and can be repurposed for up to 10 years for backup energy storage before being recycled.


How Are EV Batteries Recycled?


  1. Repurposing First: Batteries are reused for energy storage where possible.

  2. Shredding & Refining: At end-of-life, batteries are shredded to create “black mass,” from which up to 99% of critical minerals can be recovered.

a 3d rendering of an electric vehicle's batteries

However, this isn’t easy:


  • Quality standards for battery materials are high.

  • Recycling is costly and complex.

  • Regulations are unclear, especially for second-life uses in homes or businesses.


Canada’s Current Landscape


  • No Federal Regulation: Canada lacks a national framework for EV battery recycling, leaving a chaotic and haphazard set of rules for manufacturers to follow.

  • Provincial Delays: British Columbia and Quebec had plans to include EV batteries in extended producer responsibility (EPR) programs, but cancelled them by 2025.

  • Industry Steps In: The EV Battery Recovery Program, launched by vehicle manufacturers and Call2Recycle, collected 3,000 batteries in Quebec in 2024 and expanded nationally in 2025.


How Canada Compares Globally


a 3d rendering of an electrical vehicle battery plant in action

  • EU: Leads with battery recycling efficiency standards, mandatory battery passports, and content quotas phased in through 2036.

  • US: Offered generous incentives via the Inflation Reduction Act because materials recycled in the US count as US-origin, yet the future is uncertain.

  • China: Dominates the global battery recycling market, with over 80% of pretreatment and recovery capacity.


What About Canadian Companies?


  • Struggles: Li-Cycle, a major player, filed for bankruptcy in 2025.

  • Emerging Players:

    • Lithion Technologies (Quebec): Producing black mass from batteries.

    • Electra Battery Materials (Ontario): Trial facility in operation; full plant expected by 2027.

    • RecycLiCo (BC): Developing mineral refining from black mass.


What's Missing?


  • Federal Strategy: Industry experts, including Lark Scientific’s CEO Axel Doerwald, argue that leaving responsibility to provinces creates confusion and inefficiency.

  • Incentives: While Canada offers a 30% tax credit on some clean tech investments, it lacks targeted programs like those in the US or EU.


Final Takeaway

Canada is falling behind at a critical moment in the global transition to clean energy. Without federal regulation and stronger incentives, the country risks missing economic opportunities and increasing its reliance on international recycling systems.

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