Solid-State Battery Recycling Deep Dive: Closed-Loop Supply Chain Takes Shape — 95% of Precious Metals Recoverable

As solid-state batteries enter mass production in 2028, a previously overlooked industry segment — retired battery recycling — is becoming a new hotspot. German recycling technology company Duesenfeld announced at the end of March that its second-generation dry recycling process has achieved 95% recovery rates for precious metals (lithium, cobalt, nickel), with processing costs at just 40% of virgin mining costs.

Traditional lithium battery recycling primarily uses hydrometallurgical processes requiring large quantities of acid-base solutions to dissolve battery materials, with high energy consumption and substantial wastewater generation. Duesenfeld's dry process uses three steps — mechanical crushing, inert atmosphere thermal treatment, and physical separation — to complete precious metal separation and recovery without chemical solvents. The entire process generates only one-third the carbon emissions of hydrometallurgical processes.

Duesenfeld CEO stated that by 2030, over 5 million tons of power batteries will enter retirement globally, and without effective recycling systems, these batteries become enormous environmental burdens. EU Battery Regulations require new batteries to display recycling value labels from 2027, and mandate minimum recycled material content from 2031 (lithium 12%, cobalt 20%, nickel 8%).

Currently Duesenfeld operates two commercial factories in Germany with combined annual capacity of 30,000 tons. The company plans to build equivalent facilities in the US and China by 2029. Tesla has signed a long-term supply agreement with Duesenfeld to use recovered precious metals directly in new battery production.

However, solid-state battery recycling faces unique challenges. Unlike liquid lithium batteries, solid electrolyte materials (such as sulfides and oxides) have immature separation and regeneration technologies. Duesenfeld's VP of Technology acknowledged that current processes achieve only 60% recovery rates for solid-state battery electrolyte materials, and the team is actively working to overcome this technical bottleneck.