Waste management companies that hoped for quick profits from the transition to electric vehicles are now facing an unexpected issue: EV batteries are lasting much longer than anticipated, leading to lower demand for recycling.

"When the first mass-produced electric cars hit the market 15 years ago, the technology was still very basic, and many of those vehicles ended up in scrapyards within just a few years. Since there was no large-scale solution for recycling old EV batteries at the time, concerns over their environmental impact led to a rush in developing battery recycling capabilities," explains Martin Raadik, Business Development Manager at Elektrum Drive.
One of the companies established for this purpose was Redwood Materials, founded by Tesla’s former CTO JB Straubel. However, with fewer old batteries reaching the end of their life than expected, the company has had to radically adjust its plans.

The battery dies last

According to Martin Raadik, modern EV batteries are designed to last for approximately 300,000 kilometers.
"Car producers consider an EV battery to have reached the end of its life when its capacity falls below 80%. However, this does not mean the car becomes unusable. If a new EV can travel 500 kilometers on a single charge, a battery at 80% capacity can still cover 400 kilometers, which remains a practical range for everyday use," he says.
Since EVs have fewer moving parts than internal combustion engine (ICE) vehicles, their lifespan is expected to be significantly longer.
"Long-term data from Tesla Model S vehicles shows that many retain over 90% of their battery capacity even after 250,000 kilometers – a distance considered the typical lifespan of an average ICE vehicle. This suggests that EVs may actually be more durable than traditional cars. In fact, the rest of the car is likely to wear out before the battery becomes completely unusable," Raadik notes.

More reasons to buy an EV

Even when an EV becomes unfit for driving, its battery can still be repurposed for energy storage in solar and wind farms, helping stabilize the electricity grid.
"The fact that waste processors do not have enough end-of-life EV batteries to recycle is, from an environmental perspective, a good problem to have. Hopefully, this will encourage more potential car buyers to consider electric vehicles," says Raadik.
According to him, Elektrum Drive is planning to significantly expand its EV charging network across Estonia in the coming years, making EV ownership more feasible even for those living outside major urban areas.
Currently, there are over 8,600 electric cars in Estonia, and by the end of the decade, this number is expected to grow significantly. According to the European Federation for Transport and Environment, Estonia could have more than 70,000 EVs by 2030, requiring an extensive charging network.
"Today, Estonia has over 100 Elektrum Drive charging locations. By the end of 2025, this will increase to 330, reaching nearly 600 by 2026 and 800 by 2027. New charging stations will also be installed at more than 200 Coop stores across Estonia," Raadik explains.