Second life for depleted EV batteries

PETALING JAYA: With the number of electric vehicles (EVs) in Malaysia on the rise, talks have begun with EV producers on what to do with the almost 900,000 depleted lithium-ion batteries by 2050.

This is because if they are improperly disposed, the depleted EV batteries could pose environmental and health challenges for the nation.

“We are currently working towards introducing an Extended Producer Responsibility (EPR) initiative for EV batteries," said outgoing Natural Resources and Environmental Sustainability Min­ister Nik Nazmi Nik Ahmad (pic) during a recent interview with The Star.

“If you manufacture EVs, you will also be responsible for the batteries at the end of their lifespan. This includes the retrieval of the batteries for recycling or otherwise.”

The issue of depleted EV batteries, he said, needs to be addressed as the number of EVs in the country is expected to rise in the near future.

“We are looking at how best to deal with the increasing number of EV batteries as the number of EVs is set to rise.

“This is likely to happen when the RON95 targeted petrol subsidy is implemented and with the entry of cheaper EV models,” he added.

It was reported that based on an eight-year battery lifecycle and registration data of EVs in the country, the number of depleted EV batteries that will need to be processed is estimated to increase drastically from 40,000 in 2030 to 330,000 by 2040 and 870,000 by 2050.

The number of new EVs registered in Malay­sia has surged in recent years, rising from 274 units in 2021 to 21,789 units last year.

For this year alone, a total of 7,942 EVs have been registered as of April, representing a significant year-over-year growth of 79.7% compared to the same period in 2024.

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China, which is currently the world’s top EV producer, has an EPR policy to recycle 70% of EV batteries by 2030, while the European Union (EU) has regulations for EV manufacturers to design batteries aimed at recycling.

In Japan, the country’s automakers work with the local councils to conduct battery collection and reuse programmes while the United States has set aside over US$3bil (RM12.7bil) under its Bipartisan Infrastructure Law for battery material recycling and second-life research.

Nik Nazmi said talks have begun with EV manufacturers here on the EPR, although no formal decision has been made yet.

“Talks have begun but informally. It was done – not on a formal platform – but we (the ministry and EV makers) had the chance to meet at events.

“We have yet to formalise talks with the EV manufacturers,” he said, adding that the EPR would come under the responsibility of the Environment Department.

The department, said Nik Nazmi, is also drafting designated guidelines for the disposal of EV batteries and solar panels which are listed as scheduled waste.

“The designated guidelines are needed to address the increase of EVs in the country as well as the use of solar panels.

“More and more people are turning to solar energy, and there has been an increase in the use of solar panels over the past few years.

“This is in line with the nation’s transition to renewable energy and the increasing electricity tariffs,” he said.

Nik Nazmi said recycling EV batteries is one of the main approaches to be taken when dealing with depleted batteries.

“We have agreed that this is the best way forward as it will also lessen our dependence on mining for the minerals required to produce the batteries,” he added.

The global EV battery recycling market is expected to grow to US$6.5bil (RM27.56bil) in the next five years.

According to the Malaysian Investment Development Auth­ority (Mida), the nation’s battery market is projected to grow at an annual rate of 5.28% from 2022 to 2027.