Why LFP battery recycling is becoming a strategic priority for Europe
Turning used lithium iron phosphate (LFP) batteries into new cells with improved energy performance is no longer just a theoretical possibility. Researchers at the University of California San Diego have demonstrated a scalable upcycling process that eliminates the need for highly energy-intensive, chemically complex or environmentally harmful treatments. The breakthrough could help Europe reduce its dependence on imported battery materials while supporting a more competitive circular economy.
China dominates the global LFP battery market
The choice of LFP batteries is far from accidental. Today, this chemistry has become the dominant technology in the lithium-ion battery industry, accounting for more than half of all electric vehicle batteries and over 90% of stationary energy storage systems worldwide last year.
Its success stems from a lower production cost than nickel-manganese-cobalt (NMC) batteries and its ability to withstand frequent charging and discharging cycles, advantages that compensate for its comparatively lower energy density.
However, one of the industry’s greatest challenges remains the supply chain. China leads not only the manufacturing and innovation of LFP batteries, but also the production of cathode active materials, while holding most of the relevant patents and controlling a significant share of the raw material supply.
For Europe, where stationary energy storage is expanding rapidly, securing a reliable source of battery materials has become increasingly important. While competing with China on critical raw materials remains difficult, Europe has a stronger opportunity to build competitiveness through secondary raw materials generated by recycling.
Why LFP battery recycling remains challenging in Europe
Despite its strategic importance, LFP battery recycling still lacks a sustainable business model across Europe. The costs associated with recycling and reusing lithium iron phosphate batteries remain significantly higher than the value of the recovered materials.
As a result, recycled LFP is often more expensive than virgin material and even more costly than recycled black mass produced in China, where material recovery benefits from strong government support.
According to Remi Cornubert, president of consultancy Strat Anticipation, quoted by S&P Global Commodity Insights, lithium prices would need to return to approximately US$20,000 per tonne for LFP recycling operations in Europe to reach economic break-even.
Traditional pyrometallurgical and hydrometallurgical recycling methods also present major drawbacks. While they recover valuable battery components, they require large amounts of energy and rely on complex processing steps involving aggressive chemicals, increasing both operational costs and environmental impacts.
LFP battery recycling upgraded into higher-value LMFP cathodes
Researchers from the University of California San Diego’s Departments of Chemical Engineering and NanoEngineering have developed an alternative route that directly upgrades spent LFP cathodes into lithium manganese iron phosphate (LMFP).
Rather than simply recovering the original material, the process increases its value by producing a cathode chemistry with around 10% to 28% higher energy density than conventional LFP while preserving its key advantages, including safety, long cycle life, affordability and thermal stability.
This approach represents a significant step beyond conventional recycling, transforming battery waste into a more advanced cathode material suitable for next-generation energy storage applications.
How the LFP-to-LMFP upcycling process works
The process begins by dismantling used battery packs and unrolling the internal electrode assembly, commonly known as the jelly roll.
Once separated into sheets, the material is immersed in water, where a gentle centrifugation process removes the cathode coating from the aluminium current collector. The remaining LFP slurry is then dried before entering the critical upcycling stage.
Researchers introduce lithium, manganese and phosphate salts, which are milled together with the recovered LFP and subsequently heated. During this stage, the salts form an intermediate compound that mixes uniformly with the original cathode material, allowing manganese atoms to diffuse into positions previously occupied by iron.
The resulting atomic rearrangement creates a homogeneous LMFP structure that is further enhanced with a protective carbon coating, improving its electrical conductivity.
A scalable solution for Europe’s circular battery economy
The engineering team successfully demonstrated that the process works with spent batteries from multiple manufacturers. More importantly, it has already been scaled to kilogram-level production, bringing the technology closer to industrial deployment.
The next phase of the research will focus on improving process efficiency and material yield, further strengthening its commercial viability.
The study, Generating Isomorphous Intermediates Overcomes Synthesis Barriers for Scalable Direct Upcycling of LiFePO4 Battery Cathodes, has been published in Cell.