The Netherlands is well-positioned in the recycling of lithium-ion batteries, but risks missing out on the greatest economic returns from that supply chain. For example, the refining of so-called ‘black mass’ takes place almost entirely abroad, meaning that both economic value and technical expertise are lost to other countries.
This is evident from a new study by TNO into battery recycling in the Netherlands. The research institute cites, in particular, a lack of sufficient raw material streams, limited market opportunities, complex regulations and bottlenecks in the energy supply as major obstacles to the sector’s further development.
Recovering critical raw materials
The availability of critical raw materials is moving ever higher up the political and economic agenda. Materials such as lithium, cobalt and nickel are indispensable for the production of batteries for electric vehicles, energy storage and numerous other applications.
Europe itself has little or no access to these raw materials. By recovering these materials after use, Europe nevertheless aims to reduce its dependence on foreign imports. It also hopes to strengthen the circular economy in this way.
Efficient recycling chain
The study shows that the Netherlands performs particularly well in the early stages of the recycling chain. The collection of end-of-life batteries, the logistics and pre-treatment are well organised. These activities form the basis for an efficient recycling chain, in which valuable materials are recovered in the final stage.
However, it is precisely in this final step that the Netherlands falls short. There are currently no operational large-scale facilities where so-called ‘black mass’ is refined. Black mass is produced after batteries have been dismantled and contains a concentration of valuable metals such as lithium, cobalt, nickel and manganese. As there is no capacity for this refining process, recycling companies export the material to other countries, where the valuable metals are recovered.
Value and expertise are ending up outside the Netherlands
The study concludes that, as a result, not only the raw materials themselves but also a significant proportion of the economic value and strategic knowledge will end up outside the Netherlands. This limits domestic added value and increases dependence on foreign processing capacity.
One of the biggest challenges is the limited supply of used batteries. To run an industrial plant for refining black mass profitably, around 10,000 tonnes of feedstock are needed each year.
In practice, however, the available volumes are still well below this threshold. For example, in 2025, Auto Recycling Nederland collected approximately 430 tonnes of batteries from electric vehicles. In addition, the OPEN Foundation collected approximately 400 tonnes of e-bike batteries in 2024. Although these figures are expected to rise in the coming years due to the growth in electric transport, they are currently insufficient to make a large-scale refining plant economically viable.
Major investments are difficult to justify
This makes it difficult for companies to justify major investments in Dutch recycling capacity. To secure sufficient material, additional raw material streams will be necessary. In this regard, companies are looking, amongst other things, at production scrap from battery factories, which can be secured through long-term supply agreements.
It is not only supply but also demand that poses a challenge. The Netherlands has virtually no large-scale battery production, which means that domestic demand for recycled battery materials remains limited. To ensure a viable business case, Dutch recycling companies will therefore need to actively seek partnerships with European buyers. According to TNO, strategic partnerships and international supply contracts can contribute to a more stable market.
Availability of electricity poses an obstacle
In addition to economic factors, practical constraints also play an important role. Battery recycling is one of the energy-intensive industries, whilst the availability of electricity is coming under increasing pressure due to grid congestion. New industrial facilities often struggle to secure a connection to the electricity grid in a timely manner. This complicates investment decisions and can delay projects for years.
Furthermore, the licensing process often takes a long time. The study shows that procedures regularly take between two and five years. These lead times create uncertainty for companies wishing to invest in new recycling facilities. According to TNO, the combination of lengthy permit-granting processes, high energy costs and limited grid capacity makes the Netherlands less attractive as a location for large-scale material recovery.
‘Technological improvements alone are not enough’
The research institute emphasises that, whilst technological innovation can offer part of the solution, it will not eliminate all the bottlenecks. New recycling technologies can use energy more efficiently, achieve higher yields and reduce the costs of material recovery. However, technological improvements alone are insufficient if the economic and policy framework fails to keep pace.
According to the researchers, a broader systemic change is therefore necessary. The development of battery recycling requires a coherent approach in which the supply of raw materials, market demand, regulation, energy infrastructure and industrial development are strengthened simultaneously. Only when these elements are aligned will a climate emerge in which companies are prepared to make long-term investments.
Points to note
The researchers highlight several key issues in this regard. For instance, increasing the availability of raw material streams is essential to make new facilities profitable. They also state that speeding up licensing procedures is necessary to reduce investment risks. They also regard the creation of stable market conditions and the strengthening of links with European markets as key prerequisites for the sector’s further growth.
According to the study, if these structural challenges are not addressed, the Netherlands risks retaining primarily a logistical role within the European battery recycling chain. In that scenario, whilst collection and initial processing would continue to take place domestically, the actual material recovery would occur elsewhere. TNO warns that this would result not only in the loss of economic opportunities, but also in the loss of opportunities to strengthen strategic autonomy in the field of critical raw materials.
