Integrating Battery Recycling Into the Circular Economy: A Sustainable Business Model for LI-Ion Battery Waste in Romania

Authors: Florina-Iulia Maican, Ionel Bran, Irina Albăstroiu-Năstase

Abstract

This article aims to develop a sustainable and economically viable business model for a national-scale lithium-ion (Li-ion) battery recycling facility in Romania, in response to the escalating challenges of battery waste management. In line with the European Union's targets for net-zero greenhouse gas emissions by 2050, the phase-out of combustion engines by 2035, and regulatory requirements for domestic battery waste processing, the development of structured recycling systems is imperative. Furthermore, EU Regulation 2023/1542 stipulates that, by 2031, industrial, electric vehicle, and SLI batteries incorporate a minimum of 16% recycled cobalt, 6% recycled lithium, and 6% recycled nickel, with progressively stricter thresholds through 2040. The study examines how such a facility could mitigate environmental impacts, recover critical raw materials, and advance the circular economy. The research adopts a qualitative methodology based on semi-structured interviews with the president of the National Battery Recycling System (SNRB) in Romania, complemented by extensive desk research. The findings confirm that establishing a domestic recycling facility is both technically feasible and financially viable. The proposed plant, with an investment of €1.24 million, is projected to achieve a return on investment within three to six years, depending on funding sources. It will enable efficient recovery of critical raw materials, reduce dependence on raw extraction, and mitigate environmental hazards associated with battery waste. This study offers a business framework tailored to Romania’s specific market needs, aligning with EU environmental goals while addressing infrastructure gaps. It highlights the importance of regulatory frameworks and public-private partnerships in fostering sustainable recycling ecosystems. The implementation of this model can guide policymakers, investors, and industry stakeholders towards building scalable recycling infrastructure, promoting environmental responsibility, and advancing Romania’s transition to a circular economy.