Manufacturing batteries for electric cars requires additional resources and energy, so they may have a larger environmental footprint in the production phase.
However in 2024 The Economist wrote that “… within a decade or so most of the global demand for raw materials to build new batteries could be met by recycling old ones.”.
[22] In 2022 the Intergovernmental Panel on Climate Change said (with medium confidence) "Emerging national strategies on critical minerals and the requirements from major vehicle manufacturers are leading to new, more geographically diverse mines.
Given the high degree of potential recyclability of lithium-ion batteries, a nearly closed-loop system in the future could mitigate concerns about critical mineral issues.
"[23]: 142 Open-pit nickel mining has led to environmental degradation and pollution in developing countries such as the Philippines and Indonesia.
The demand for heavy metals, and other specific elements (such as neodymium, boron and cobalt) required for the batteries and powertrain is expected to grow significantly due to the future sales increase of plug-in electric vehicles in the mid and long term.
[39][40] China has 48% of the world's reserves of rare-earth elements,[41] the United States has 13%, and Russia, Australia, and Canada have significant deposits.
The mines in Bayan Obo near Baotou, Inner Mongolia, are currently the largest source of rare-earth metals and are 80% of China's production.[42][relevant?]
[45] The mining and processing of metals such as lithium, copper, and nickel can release toxic compounds into the surrounding area.
[49] Compared to conventional internal combustion engine automobiles, electric cars reduce local air pollution, especially in cities,[50] as they do not emit harmful tailpipe pollutants such as particulates (soot), volatile organic compounds, hydrocarbons, carbon monoxide, ozone, lead, and various oxides of nitrogen.
Most of the lithium-ion battery production occurs in China, where the bulk of energy used is supplied by coal burning power plants.
[68] Some electric vehicle manufacturers, such as Tesla, claim that a lithium-ion battery that no longer fulfills the requirements of its intended use can be serviced by them directly, thereby lengthening its first-life.
When lithium-ion batteries are recycled, if they are not handled properly, the harmful substances inside will cause secondary[clarification needed] pollution to the environment.
[75] There is currently no cost-effective way for the industry to recycle electric motors due to the complicated extraction process of these magnets.
[76][77] The DEMETER project was a research initiative between the European Union and private entities, which culminated in the development of a recyclable electric motor designed by French company Valeo.
[77] Nissan and Waseda identified and refined a new process for extracting rare-earth magnets for re-use in the manufacturing of new electric vehicle motors.[77][relevant?]