Battery recycling is becoming an increasingly important component of Europe’s critical minerals strategy as governments and industry seek to recover valuable metals, reduce import dependence and expand domestic secondary raw material supplies.
The sector supports circular-economy objectives by recovering metals from end-of-life batteries and manufacturing waste, but commercial development continues to depend on the availability of sufficient feedstock.
Fortum Expands Battery Recycling Capacity in Finland
Fortum Battery Recycling is advancing one of Europe’s largest battery recycling platforms through planned expansion of its hydrometallurgical operations in Harjavalta, Finland. Business Finland has awarded €84.6 million to support a potential expansion of the facility.
The existing plant processes approximately 3,000 tonnes per year of black mass, while the proposed expansion could increase capacity to 28,000 tonnes per year. Fortum has also stated that its NEXT HYDROMET facility is designed to produce battery-grade nickel sulphate, cobalt sulphate and lithium hydroxide, with planned output sufficient to supply materials for approximately 138,000 electric vehicles annually. The project remains under development ahead of a potential final investment decision (FID).
The project illustrates a development model in which public funding supports early-stage expansion before investment decisions are finalized, while financing continues to depend on feedstock availability, processing margins and customer demand.
Northvolt Bankruptcy Affects Recycling Supply Chain
The availability of battery recycling feedstock has become a greater industry concern following the collapse of Northvolt. The battery manufacturer had raised more than US$10 billion before entering bankruptcy with more than US$8 billion in debt across entities involved in the Chapter 11 process. Lower-than-expected battery cell production reduces the volume of manufacturing scrap available to recyclers, limiting supplies of black mass and affecting the broader battery materials supply chain.
Hydrovolt Ownership Changes Following Northvolt Exit
The restructuring of Northvolt also resulted in changes to Hydrovolt, one of Europe’s major electric vehicle battery recycling companies. Norsk Hydro acquired Northvolt’s remaining ownership interest in Hydrovolt for NOK 78 million, increasing its stake to 100%. Hydrovolt operates one of Europe’s largest electric vehicle battery recycling facilities in Fredrikstad, Norway. Norsk Hydro has also indicated that continued expansion will require partnerships and long-term financing.
End-of-Life Battery Volumes Expected to Increase Over Time
Commercial battery recycling capacity is expected to expand as larger volumes of electric vehicle batteries reach the end of their operating lives. Until then, recyclers remain dependent on manufacturing scrap, defective battery cells, consumer electronics, industrial batteries and imported black mass as feedstock sources. If European battery cell manufacturing develops more slowly than anticipated, the growth of recycling capacity may also progress at a slower pace.
The sector requires long-term investment, diversified feedstock sourcing, hydrometallurgical processing capabilities and customer agreements for recovered battery materials. Companies including Fortum, Norsk Hydro and Umicore are positioned within Europe’s circular battery materials sector, with project development continuing to depend on feedstock availability, financing and market growth.
