Unlocking Economic and Environmental Gains Through Lithium-Ion Battery Recycling for Electric Vehicles

Abstract

Amid South Africa’s shift towards electric vehicles (EVs), building a lithium-ion battery (LIB) recycling sector is essential for promoting sustainable development and generating employment opportunities. This study employs qualitative methodologies to collect insights from 12 critical stakeholders in the automotive, mining, and recycling sectors and academia to examine the feasibility and advantages of establishing such an industry. We implemented purposeful and snowball sampling to guarantee an exhaustive array of viewpoints. Thematic analysis of the interview data reveals that LIB recycling has substantial social, environmental, and economic implications. The results emphasize the pressing necessity of recycling infrastructure to mitigate environmental impacts and attract investment. The economic feasibility and employment potential of LIB recycling is promising despite the early stage of the EV industry in South Africa. These potentials are influenced by EV adoption rates, technological advancements, regulatory frameworks, and industry growth. In this sector, employment opportunities are available in various phases: battery collection, transportation, disassembly, testing, mechanical crushing, hydrometallurgical processes, valuable metal recovery, manufacturing, reuse, research and development, and administrative roles. Each of these roles necessitates a unique set of skills. This interdisciplinary research investigates vital elements of economic growth, employment creation, environmental sustainability, policymaking, technological innovation, and global collaboration. The study offers valuable guidance to policymakers and industry stakeholders trying to establish a sustainable and robust LIB recycling industry in South Africa by utilizing Transition Management Theory to develop a framework for improving the sustainability and circularity of the EV LIB recycling sector.

1. Introduction

South Africa (SA) is at a crossroads, trying to balance environmental responsibility with economic growth as it transitions to a low-carbon transportation economy through electric vehicles (EVs). A critical aspect of this transition is the potential for long-term job creation, which may promote economic development, reduce unemployment, and boost decarbonization initiatives while also creating human capital. Notably, the landscape of LIB manufacturing [1], a critical component of EVs [2,3,4], is currently dominated by a few nations, leaving SA without a significant role in this sector [5]. While LIBs hold promise for remanufacturing at the end of their life [1,6], creating economic and employment opportunities [7,8], SA currently faces a significant challenge: the absence of local recycling facilities capable of processing these batteries efficiently [5]. Furthermore, there is little study into the economic, social, and environmental benefits of building such a sector in the country. This study seeks to address this gap by investigating the viability of a local LIB recycling operation and its implications for job creation, economic growth, and environmental sustainability.

The absence of LIB recycling facilities presents a significant gap and an urgent need for SA to establish a LIB recycling sector. Such a sector addresses environmental concerns [9] and enhances investment opportunities for industrial facilities [10]. The urgency is emphasized by the need for SA to keep pace with emerging markets in the foundational stages of their EV industries [11]. The trajectory of EV market unit sales, expected to reach 1,413,000 vehicles in 2028, further accentuates the need for a swift response. SA’s mature automotive sector strategically positions it to become a leader in EVs, including component manufacturing [11].

LIBs power millions of EVs, contributing to reduced energy consumption, but the growing electrification of the automotive sector also poses a challenge of significant waste from LIB packs [12]. EVs frequently face criticism regarding their sustainability due to concerns surrounding waste disposal. As the adoption of EVs accelerates, the efficient management of used LIBs becomes a pressing concern [13]. Continued global use of EVs will force the automotive sector to implement circular economy practices, including remanufacturing [14]. Despite the anticipated longevity of EV batteries (8 to 10 years), remanufacturing and reusing LIBs at the end of their useful lives contribute to the circular economic system of battery components, distinguishing EV batteries from traditional fossil-fuel-powered vehicles. However, SA lacks a recycling value chain and facility for used LIBs from EVs, lagging behind countries already established themselves as pioneers in LIBs-used recycling.

The global literature on LIB recycling and job creation is a vital backdrop, shedding light on sustainable practices and economic implications. Research by [15,16,17,18] emphasizes the pressing need for effective recycling systems to mitigate resource depletion and environmental hazards linked to improper disposal. Furthermore, studies by [2,19] highlight technological advancements in battery recycling, emphasizing their potential for reducing environmental footprints and fostering circular economies. The research by [20,21,22] delves into the economic aspects of battery recycling, underlining the potential for job creation and economic growth within the recycling industry. These studies highlight the significance of adopting circular economy principles to maximize the value of used batteries and minimize waste.

Studies such as [23,24] indicated the need to tailor recycling strategies to suit the socio-economic context of each region. The scarcity of literature specific to SA stresses the critical need for this study to bridge the gap and provide a localized perspective. Presently, SA grapples with a lack of comprehensive data on the LIB recycling landscape, hindering informed and proactive decision-making. The existing literature predominantly focuses on global trends, leaving a critical void in understanding the localized dynamics and opportunities. The timeliness of this research lies in its intersectionality between environmental concerns, economic development, job creation, policy formulation, technological advancement, and global collaboration. The foundation of this research is the Transition Management Theory (TMT), which offers a framework for assessing and guiding changes in the direction of sustainable development [25,26]. TMT highlights the significance of innovation, stakeholder engagement, and multi-level governance—all necessary to build a sustainable LIB recycling sector in SA. This study uses TMT to investigate the necessary paths and tactics to move from a state of no recycling infrastructure to a thriving, circular economy-driven LIB recycling industry.

This study contributes to the current body of knowledge by offering localized insights into the viability of building a LIB recycling business in SA, particularly emphasizing economic, environmental, and social advantages. Unlike prior studies focusing on global trends, this research provides a complete analysis specific to SA’s socioeconomic setting, filling a vital gap in understanding how such a sector can be developed and sustained locally. By aligning with Circular Economy principles, the study seeks to move beyond a linear “take-make-dispose” model, envisioning used batteries as valuable resources to be reclaimed, refurbished, and reused. The overarching aim is to (i) assess the LIB recycling landscape in SA and (ii) evaluate the potential for employment creation within the refining and recycling sector of LIBs in SA. This study addresses SA’s distinctive socioeconomic challenges by positioning LIB recycling as a means of achieving sustainable development, employment creation, and diminished import dependence by the United Nations Sustainable Development Goals. It provides a comprehensive roadmap for establishing a sustainable recycling sector using the Circular Economy, TMT, and Industrial Ecology frameworks. The study underscores the importance of employment potential and skill development, which will facilitate the integration of SA into the global circular economy and advance local and global sustainability objectives. As we navigate this unexplored terrain, the study’s findings are poised to inform policy, guide industry stakeholders, and contribute to the holistic advancement of sustainable practices in SA’s evolving energy landscape. The empirical literature and framework were explored in the remainder of the paper. Next, the methodology section details the research design and data collection methods. The subsequent empirical findings presented an analysis of the current state of LIB recycling in SA and assessed the potential for job creation within the sector. The study then culminated in a discussion synthesizing findings with existing literature. The conclusion follows, summarizing key insights, highlighting the study’s significance for SA, and suggesting avenues for future research and policy development.

2. Empirical Literature

The boom in EV usage has highlighted the lifetime of LIBs, especially for environmental sustainability and resource recovery. With the proliferation of electric vehicles, establishing a comprehensive recycling sector for their batteries is essential for waste management, resource conservation, and capitalizing on economic prospects. This is especially relevant in developing countries, where the infrastructure for battery recycling is in its infancy, presenting distinct problems and opportunities.

2.1. Economic and Environmental Benefits of LIB Recycling

LIBs recycling is essential to sustainable energy transitions, especially in resource-constrained situations like developing nations. This is because LIBs include valuable metals such as lithium, cobalt, and nickel. As a result, recycling these materials lessens reliance on freshly mined resources while stabilizing material supply networks. Furthermore, LIB recycling can reduce dependence on imports while promoting industrial growth for developing countries that frequently lack domestic access to these critical minerals [27,28]. According to multiple studies, recycling batteries can recover between 80% and 95% of their valuable components, depending on the recycling method and specific materials recovered, thereby significantly reducing the need for virgin resources [29,30,31,32,33,34,35,36].

Additionally, recycling LIBs reduces the environmental risks associated with inappropriate disposal. Discarded batteries in landfills can leak harmful elements into soil and water systems, posing long-term environmental problems. Furthermore, recycling significantly decreases greenhouse gas (GHG) emissions compared to producing new batteries from virgin materials [37,38,39,40]. For example, research in China found that remanufacturing LIBs from recycled components might cut GHG emissions by up to 38% and water use by more than 40% [41]. In addition to these environmental advantages, the economic analyses by [29,42,43] show that LIB recycling has a huge economic potential. Establishing a recycling business in underdeveloped nations with high unemployment rates can provide opportunities for battery collecting, processing, and material recovery [44]. For example, India’s LIB recycling industry is expected to reach $1 billion by 2030 owing to rising EV battery demand and waste creation [45].

2.2. Key Challenges Facing LIB Recycling in Developing Countries

Despite the apparent benefits, several problems impede the growth of LIB recycling companies in developing countries. For example, many underdeveloped nations lack adequate technological and industrial capabilities to handle LIB waste [36]. Furthermore, recycling procedures like pyrometallurgy and hydrometallurgy necessitate complex facilities that are frequently energy-intensive and expensive to operate [46]. As a result, without significant investment in recycling infrastructure, many countries struggle to manage the increasing number of wasted batteries [47,48]. Furthermore, the lack of comprehensive regulatory frameworks and enforcement procedures hinders battery recycling activities. Developing nations frequently lack legislation requiring recycling or providing incentives for businesses to engage in battery recovery methods. For example, without immediate governmental interventions, Laos confronts regulatory obstacles that might impede the establishment of a sustainable LIB recycling sector [49].

Similarly, in China, regulatory inadequacies have led to a substantial number of wrongly disposed LIBs, highlighting the need for stricter laws [29]. Furthermore, while LIB recycling has economic benefits, the initial expenditures of starting a recycling facility might be too expensive. Recycling is frequently only economically viable when material costs are high, or government incentives are available. As a result, lithium and cobalt material price volatility in developing countries might impact the profitability of recycling businesses, discouraging investment. For example, during periods of price instability, recycling enterprises may struggle to stay economically viable without government subsidies or other financial assistance [50]. Furthermore, LIB recycling competes with less expensive waste disposal options such as landfilling, which is still common in many underdeveloped countries [51]. Efficient recycling necessitates well-established collecting networks for old batteries, frequently unavailable in developing nations [52,53]. Furthermore, poorly maintained or carried batteries may pose safety issues, including fires. Thus, the lack of extensive collection networks impedes the efficient recycling of old batteries, aggravating the waste problem [12]. This is particularly concerning for countries that lack established safety guidelines for handling and processing LIBs [54].

2.3. Opportunities for Developing Countries

While there are significant hurdles, developing nations have the unique opportunity to accelerate the adoption of sustainable recycling solutions by capitalizing on global trends and new technology. For example, retired EV batteries, which are no longer suitable for automotive usage, might be recycled for less demanding applications such as stationary energy storage for renewable energy systems. This method enables the second-life usage of LIBs to extend their longevity while also adding commercial value. Second-life LIBs have stabilized energy systems in rural parts of developing countries. Several nations, notably China, are looking into second-life uses for LIBs to reduce the environmental effect of discarded batteries and increase energy security in rural regions. Also, developing nations can implement eco-friendly and cost-effective recycling technology customized to their requirements. Hydrometallurgical recycling methods, which need less energy than traditional pyrometallurgy, are gaining popularity in countries like India. These techniques are more amenable to smaller-scale operations and have less environmental impact [45].

Furthermore, engagement with international organizations and rich nations can assist in speeding the development of LIB recycling in low-resource contexts. Investment in local research, capacity building, and technology transfer can help emerging nations establish their recycling industry. For example, indigenous R&D efforts in India are devoted to improving these technologies to suit better the country’s resource limits [55]. Furthermore, some global programs, including those supported by the United Nations and the World Bank, are already focusing on increasing capacity in emerging nations’ energy and recycling sectors [56]. As a result, emerging economies may incorporate circular economy ideas into their nascent LIB recycling businesses. By focusing on material recovery and local reuse, they can lessen the environmental impact of mining and imports. In India, for example, the government has set aggressive objectives for EV adoption, encouraging the development of LIB recycling to ensure a consistent supply of critical materials while managing waste concerns [44]. Similarly, China’s strategy for creating EV battery recycling networks, which considers both carbon emissions and economic effectiveness, might be an example for other developing countries [57].

Despite global advancements, a substantial deficit in LIB recycling infrastructure persists in SA. As [53] has reported, the absence of comprehensive recycling facilities presents opportunities and challenges for developing a robust recycling sector. The potential for job creation is present in all stages of the recycling process, from collection to hydrometallurgical processing, each of which necessitates unique skills [53,58]. The key stages of the EV lithium-ion battery recycling process are illustrated in Figure 1. This flowchart overviews the primary actions in recovering valuable materials from spent batteries. Each main stage involves specific actions to safely recover valuable materials like lithium, cobalt, nickel, and manganese, which can be reintroduced into the battery supply chain, supporting a circular economy.

The significance of innovations and policies in promoting sector growth has been demonstrated [38,53,59]. SA can establish itself as a global support in the EV recycling industry by addressing environmental challenges and capitalizing on economic opportunities through implementing circular economy principles. Refs. [40,47] have offered region-specific techniques critical for effectively implementing recycling programs that consider the local socioeconomic situation.

2.4. Theoretical Framework: Transition Management, Circular Economy, and Industrial Ecology

This study utilizes Transition Management Theory (TMT), Circular Economy principles, and Industrial Ecology concepts to investigate the development of a sustainable LIB recycling sector in SA. As shown in Figure 2, each framework significantly enhances the comprehension of the intricacies inside this burgeoning area. TMT offers a systematic framework for facilitating the transition to a sustainable lithium-ion battery recycling sector [25,26].

The idea underscores the need for stakeholder involvement and strategic innovation, which is essential as SA develops its recycling infrastructure [60,61]. TMT guarantees a collaborative transformation by engaging governments, industry stakeholders, and researchers in decision-making [62]. The approach emphasizes the significance of multi-level governance, which promotes cooperation among local, national, and global platforms. This research illustrates how TMT facilitates stakeholder collaboration to cultivate a resilient sector while ensuring that strategic innovations propel development and adaptability.

The Circular Economy introduces an essential dimension by emphasizing resource efficiency and waste reduction [9,63]. In LIB recycling, the circular economy promotes a closed-loop system in which materials are perpetually reused and recycled instead of disposed of [64,65]. This method is very crucial in mitigating the environmental consequences of battery waste. The study coincides with worldwide initiatives to minimize waste and enhance sustainability via recycling and reuse. By implementing circular economy ideas, SA may diminish its dependence on virgin resources while generating new employment and economic prospects throughout the recycling process.

The Industrial Ecology approach enhances existing frameworks by highlighting the interconnection between economic activity and environmental systems. It promotes the development of recycling methods that emulate nature’s regeneration cycles, guaranteeing that industrial operations enhance environmental well-being. This entails advancing technologies and methodologies that reduce pollution and sustainably recover valuable materials for the LIB recycling sector. Industrial Ecology emphasizes environmental responsibility by reconciling economic expansion with ecological conservation [66,67,68]. Each of these theoretical frameworks provides unique, practical insights to facilitate the recycling of LIBs in SA. Beginning with localized pilot programs in urban centers or partnerships with the automotive industry to refine collection and recycling practices, TMT guides a phased approach before scaling nationally. The Circular Economy principles promote a closed-loop system where manufacturers collect end-of-life EV batteries and recycle and reintegrate valuable materials into new products. This approach reduces dependence on newly mined resources and promotes economic sustainability. Industrial Ecology further endorses this approach by advocating for co-located facilities, such as recycling centers near battery manufacturers or mining companies, which promote efficient resource flows and reduce transportation costs. Collectively, these frameworks establish a strong foundation for fostering sustainable LIB recycling in SA, connecting theory to practical strategies that optimize the country’s distinctive economic and environmental circumstances. These ideas direct the inquiry into how this business may tackle local difficulties, such as job development while advancing global environmental objectives. They underscore the significance of innovation, teamwork, and resource efficiency in establishing a circular and sustainable sector [69,70] that advantages the economy and the environment.

3. Materials and Methods

This study employs a qualitative research design, utilizing in-depth interviews [71,72] to explore the economic, environmental, and social dimensions of investing in EV LIB recycling in SA. A qualitative approach was selected due to its ability to thoroughly examine intricate, multifaceted issues from the stakeholders’ perspectives, which is especially advantageous in a field with a scarcity of existing research. The study’s exploratory nature is designed to reveal insights that quantitative methods may fail to capture, particularly in the context of industry-specific challenges and opportunities.

The participant pool comprised 12 key stakeholders from SA’s LIB industry, selected using purposive and snowball sampling methods to ensure diversity and expertise [73]. Purposive sampling was implemented due to its ability to identify participants with specific expertise and direct experience in the LIB recycling industry. This is essential for acquiring informed insights into the sector’s opportunities and challenges. By identifying additional crucial individuals who were not initially apparent but contributed significant expertise, snowball sampling complemented this, enriching the diversity of perspectives. This combination guarantees a more thorough comprehension of the industry from various perspectives. The participants included representatives from (1) Automotive Manufacturers (these participants provided insights into the integration of LIB recycling within the automotive production lifecycle, emphasizing the industry’s current practices and prospects); (2) Mining and Recycling Sector Leaders (these stakeholders offered perspectives on the technical, operational, and economic aspects of LIB recycling, highlighting challenges and opportunities within the sector); and (3) Academic and Research Institutions (participants from academia contributed knowledge on scientific advancements, workforce training needs, and the theoretical underpinnings of LIB recycling, providing a research-oriented perspective).

Participants were selected based on their recognized expertise and contributions in materials science, energy storage, and electrochemistry. Because the LIB recycling industry is highly specialized, the study necessitated the participation of individuals with direct experience and knowledge of its processes. Consequently, this targeted recruitment was necessary. The selection criteria aimed to ensure that the study captures a comprehensive view of the LIB recycling landscape, addressing various facets of the industry. The recruitment process involved selecting participants with specific characteristics or experiences relevant to the research objectives (purposive sampling). Key individuals known for their expertise and leadership in LIB recycling were identified and invited to participate. The snowball sampling technique was used to identify additional participants through referrals from initial participants. This method helped reach influential and knowledgeable stakeholders who might not have initially been identified. To maintain anonymity, participants are referred to by their roles or sectors (e.g., “an academic researcher” and “a recycling industry leader”) without disclosing personal identifiers. This approach ensures privacy while providing context to the insights shared.

Interviews were conducted in English, lasting between 30 to 50 min, which allowed for an in-depth exploration of each participant’s perspectives. The data collection process was designed to ensure ethical integrity and comprehensive coverage of the research questions [71,74]. The researcher was able to delve deeper into the economic, environmental, and social dimensions of LIB recycling by employing in-depth interviews, which allow for a flexible, conversational approach to exploring complex and sensitive topics. Additionally, this approach enables participants to articulate their opinions more comprehensively than is feasible through structured surveys. The study received ethical clearance from the institutional review board (WITHHELD FOR BLIND REVIEW). Ethical guidelines were strictly followed to protect participants’ rights and well-being. Before the interviews, participants were provided with detailed information about the study, including its purpose, procedures, and potential risks. Informed consent forms were signed by all participants, affirming their voluntary participation and agreement to be recorded. The interview protocol included open-ended questions designed to elicit detailed responses about the economic, environmental, and social aspects of LIB recycling. Follow-up questions were used to probe deeper into specific areas of interest. All interviews were audio-recorded with participants’ explicit consent to ensure accuracy in data capture. The recordings were then transcribed verbatim for thorough analysis. The sample size was determined by reaching data saturation and providing a robust and comprehensive dataset [75,76].

Thematic analysis was employed to systematically analyze the qualitative data [77,78]. The rationale for selecting this method was its ability to facilitate the identification of key themes and patterns in the data, thereby offering a structured approach to interpreting the qualitative responses. This type of exploratory study is particularly well-suited to thematic analysis, as it is necessary to understand the diverse perspectives of stakeholders to address the research questions. This method involves identifying, analyzing, and reporting patterns (themes) within the data, providing a rich and detailed account of the dataset. To ensure the reliability and validity of the interview material, we used numerous processes throughout data collection, processing, and thematic analysis [79]. The interview guide was pre-tested by two industry experts with profiles similar to those of the study’s participants. Their input helped to improve the language and arrangement of the questions, ensuring they were clear, relevant, and connected with the study’s objectives, thereby avoiding confusing or leading questions. Although the interviewers were previously experienced in conducting interviews, the questions were designed to be impartial and avoid leading or suggestive wording. Participants were encouraged to express their viewpoints openly to prevent the interviewer’s influence on responses, and follow-up questions were used for clarity. Researchers immersed themselves in the data by repeatedly reading the interview transcripts to understand the content comprehensively. Transcripts were meticulously coded to identify significant features of the data. Coding involves labeling text segments with codes that capture the essence of the information. Codes were systematically applied across the entire dataset, capturing key concepts and recurring patterns. These codes were then grouped into potential themes representing significant aspects of the data. This step involved reviewing coded data to identify broader patterns of meaning. Themes were reviewed and refined to ensure they accurately represented the data. This process included checking themes against the data to ensure they were coherent and distinctive. Each theme was clearly defined and named, capturing its essence and relevance to the research questions. Detailed descriptions of each theme were developed to provide a contextualized understanding. Two researchers independently coded a subset of interviews. The inter-coder reliability was assessed by comparing the codes assigned by each researcher. Any discrepancies in coding were discussed and resolved through consensus, ensuring a consistent and accurate coding framework. Also, member-checking was used to improve data accuracy, although not all participants were available to confirm their responses after the interview. Abstracts of their responses were sent to those who were available, allowing them to validate or alter the contents to ensure that their perspectives were accurately represented. These processes contributed to the study’s methodological rigor, resulting in trustworthy and valid insights regarding SA’s LIB recycling ecosystem.

While the purposive sampling strategy aimed at capturing diverse perspectives, some limitations exist. There is an inherent risk of sampling bias due to participant availability and willingness to participate. However, efforts were made to include a broad spectrum of stakeholders, but some key perspectives might have been missed. The use of remote interview methods (Zoom and phone calls) may have limited the ability to capture non-verbal cues, which could provide additional context to participants’ responses. While this was unavoidable given the circumstances, it is acknowledged as a limitation that may have affected the depth of data in some instances.

Nevertheless, logistical constraints necessitated remote interviews, and every effort was made to guarantee that the data acquired was comprehensive and representative of the participants’ perspectives. As with any qualitative analysis, there is a risk of researcher bias in interpreting the data. To minimize this, two researchers independently coded a subset of interviews, and discrepancies were resolved through discussion to ensure objectivity and reliability in the coding framework. The findings are specific to the South African context and may not be fully generalizable to regions with different socio-economic and regulatory environments. Despite these constraints, the research design was organized to guarantee a thorough examination of the research questions. A comprehensive framework for comprehending the LIB recycling landscape in SA was established through the integration of purposive and snowball sampling, semi-structured interviews, and thematic analysis. Looking ahead, future studies could address these limitations by adopting broader methodologies. Using stratified or random sampling with purposive and snowball approaches may gather a broader spectrum of industry opinions while decreasing sample bias. Furthermore, in-person interviews and on-site observations might improve remote data collection by collecting nonverbal cues and contextual factors, resulting in a more complete comprehension of participants’ replies. Expanding the research to diverse socioeconomic regions, both within and outside of SA, would also allow for comparative analysis, improving the transferability of findings and assisting in developing context-specific strategies for LIB recycling, thereby validating the framework’s applicability across various regulatory environments. By addressing these limitations, future studies could refine and validate the framework presented here, ultimately contributing to a stronger foundation for sustainable LIB recycling practices globally.

4. Results: Sustainable Innovation and Job Creation in South Africa’s LIB Recycling Ecosystem

Embarking on an in-depth investigation of SA’s LIB recycling ecosystem, this part uncovers various opinions from industry professionals. A comprehensive portrait of the present situation and future potential unfolds through professionals’ voices in electrochemistry, electric car production, mining and recycling leadership, education, policy-making, and energy storage skills. Together, these specialists construct a story of anticipation, cooperation, and invention, revealing insights into the dynamic and growing character of SA’s LIB recycling business.

4.1. Lithium-Ion Battery Recycling Landscape in South Africa

To address the first objective of assessing the LIB recycling landscape in SA, we gathered insights from stakeholders to provide an overview of the current state and challenges of the sector. The findings indicate that SA currently lacks sufficient facilities for recycling LIBs, posing significant environmental and economic challenges. This gap underscores the urgent need to establish a robust recycling industry.

4.1.1. Current State of LIB Recycling Infrastructure

The stakeholders consistently highlighted that the LIB recycling infrastructure in SA is still in its early development stages. This was evident from the various responses. The electrochemistry expert noted, “The economic viability of returning end-of-life batteries from EVs, which is presently hindered by small volumes, is about to undergo a significant transformation. The trajectory of LIBs imported at a cost of around 12 billion Rands indicates an imminent critical mass, which signifies a turning point in the economic viability of recycling. This provides a foundation for a dynamic narrative in which the magnitudes of change may be negligible but still irrefutable”. This quote emphasizes the expectation of achieving a critical mass in LIB recycling, indicating that the economic efficacy of recycling is expected to improve substantially as the volume of recyclable batteries increases.

Another stakeholder emphasized, “Although there is considerable enthusiasm about the possibility of electric cars in SA, the recycling infrastructure is openly acknowledged as nascent. Vigilantly monitoring advancements and actively collaborating with recycling frontrunners is crucial to guaranteeing a sustainable lifespan for our goods”. This demonstrates the present enthusiasm and understanding of the infrastructure’s early stages and the necessity for close coordination and monitoring to support development and sustainability in the industry.

4.1.2. Challenges and Opportunities

The stakeholders identified key challenges and opportunities within the LIB recycling sector, focusing on technical, operational, and educational aspects. A mining and recycling leader stated, “Recognizing the tremendous potential that LIBs provide, we must face the sobering reality that the sector is still in its infancy. Instead of avoiding difficulties, we allocate resources to research and development, prioritizing efficient and ecologically sustainable procedures. Expansion necessitates capital outlay and ingenuity”. The stakeholder highlights the importance of investing in research and development to overcome technical challenges and promote sustainable practices, emphasizing that the sector’s growth will require substantial investment and innovative solutions. The educational department representative noted, “To address the challenges posed by this burgeoning sector, we are putting up training programs and curriculum modules. Preparing students with the requisite competencies for a career in battery technology is an unambiguous objective. Collaborative efforts with professionals in the field are essential to maintaining a competitive edge”. The response highlights the proactive actions taken in the education sector to prepare future workers with the essential skills for the LIB recycling business, emphasizing the significance of collaborating with industry experts to remain competitive.

4.1.3. Policy and Strategic Framework

Stakeholders also emphasized the importance of a supportive policy framework to drive the sector forward. As a materials scientist policymaker stated, “When examined via a policy lens, the recycling sector of LIBs becomes evident as a crucial domain. In addition to regulating, policies are designed to promote innovation and sustainable practices. A comprehensive strategy includes promoting scientific collaborations, supporting educational activities, and establishing a favorable regulatory environment”. The policymaker’s perspective broadens the discussion to include the role of policy in fostering innovation and sustainability within the LIB recycling sector.

4.1.4. Future Outlook

The potential for innovation and integration with broader energy systems was highlighted as a significant opportunity. The energy storage participant mentioned, “Recycling is not just a promising area now; it is also the subject of continuing research into innovative energy storage methods. The investigation goes beyond simple recycling and involves the harmonious integration of electric cars, grid storage, and renewable energy”. This reflects the expansive potential for innovation within the recycling sector, particularly in integrating recycling processes with broader energy storage solutions.

Figure 3 below offers a comprehensive summary of the examination of the LIB recycling landscape in SA. The burgeoning LIB recycling sector is at the core of the issue, with significant challenges, including a shortage of competent labor, high initial investment, and inadequate infrastructure. Despite these challenges, there are exciting opportunities for technological innovation, job creation, and collaboration between academia and industry. The policy and strategic framework layer accentuates the necessity of educational programs, incentives, and supportive government policies to promote innovation and workforce development. Looking ahead, the future outlook emphasizes the potential integration of LIB recycling with renewable energy systems, grid storage, and electric vehicles. The circular economy and stakeholder engagement constitute vital components of this landscape, as they emphasize resource efficiency, waste reduction, and collaborative endeavors among government, industry, and academia to achieve economic growth and sustainability.

The results are consistent with Transition Management Theory, highlighting the significance of a multi-level perspective, strategic innovation, and stakeholder engagement in facilitating sustainable transitions. The thematic analysis accentuates the necessity of a coordinated approach involving various stakeholders, as evidenced by the nascent stage of the LIB recycling infrastructure in SA. Circular Economy principles are also crucial, as they promote resource efficiency and waste minimization, which are indispensable for establishing a sustainable LIB recycling sector. The emphasis on educational programs and policy support further incorporates Industrial Ecology concepts, promoting the interconnectedness between natural systems and economic operations to foster environmental health and economic harmony. The analysis reveals a multifaceted landscape with substantial potential for development and transformation in SA’s LIB recycling sector. Strategic initiatives are necessary to confront these challenges, as the stakeholders’ perspectives underline the current inadequacies.

4.2. Employment Creation Within the Refining and Recycling Sector of Lithium-Ion Batteries in South Africa

To address the second objective of assessing the potential for employment generation in the LIB refining and recycling sector of SA, we comprehensively examined the recycling process at its various stages. Each stage presents unique employment opportunities depending on the technical requirements, sector development, and socio-economic factors. The analysis is enhanced by specific quotations from interviewees to elucidate key points and themes pertinent to employment opportunities. The findings are interpreted within the framework of Transition Management Theory, Circular Economy principles, and Industrial Ecology concepts.

4.2.1. Collection and Transportation

The initial stage of the LIB recycling process involves collecting and transporting used batteries. This phase is characterized by its labor-intensive nature, requiring significant human coordination and effort. A recycling industry professional described this phase, “The end-of-life collecting and transportation phase for LIBs found in EVs is a labor-intensive task that requires the coordination of storage management, human labor, and logistical operations. Employment is predominantly generated at collecting locations, where batteries that have been used are gathered, sorted, and made ready for delivery to processing facilities or recycling centers”. The need for manual sorting and compliance with safety regulations creates numerous job opportunities, particularly in areas with high EV adoption and well-established recycling infrastructure. The rapid growth of EVs further underscores the potential for significant employment generation in this phase.

4.2.2. Battery Disassembly and Testing

The disassembly and testing phase of LIB recycling demands both expert and semi-skilled labor. This stage is critical for ensuring batteries’ safe and efficient breakdown into their parts. A materials scientist provided insights into this process, “Aliasing LIBs during the testing and disassembly step requires the assistance of expert and semi-skilled laborers. With knowledge of battery technology, I know the criticality of mastering battery chemistry complexities and operating specialized equipment. The disassembly process is supervised by proficient professionals, including myself, who ensure adherence to safety rules and effective component separation”. This phase provides several job prospects for those with technical talents in battery technology and basic assembly abilities. The quantity of batteries, level of automation, and demand for recycled components all impact the employment available at this period. Manual or semi-automated processes often provide more job prospects than highly automated ones.

4.2.3. Mechanical Crushing

Mechanical crushing is a crucial phase in the LIB recycling process, involving the physical breakdown of batteries. This phase requires specialized technicians to operate crushing equipment effectively. Energy storage and materials science experts emphasized, “Trained technicians occupy center stage and are responsible for efficiently running crushing equipment. This phase generates moderate employment due to the necessity for experienced individuals who can accurately manage the equipment used in the mechanical breakdown of batteries”. Technical knowledge in material handling and mechanical processes is critical. Although the number of tasks in this phase is limited, they are essential to the integrity of the recycling process.

4.2.4. Hydrometallurgical Processes

The hydrometallurgical process involves the chemical treatment of battery materials to recover valuable metals. This stage necessitates advanced scientific and technical skills. Specialists in lithium-ion technology and electrochemistry noted, “Materials scientists play critical roles in this step, optimizing chemical processes specialized for the selective dissolving of metals. Although job prospects in this period are limited, their relevance is significant, necessitating a cadre of materials science professionals”. The complexity of chemical reactions involved in metal dissolution requires a high level of expertise, underscoring the critical importance of these roles despite the limited number of positions.

4.2.5. Recovery of Valuable Metals (e.g., Black Mass)

The recovery of valuable metals, such as those found in black mass, is a pivotal part of recycling. This phase demands highly qualified specialists and engineers to develop and refine extraction techniques. Respondents highlighted, “Their critical role includes inventing and improving procedures for isolating metals such as graphite, manganese, cobalt, nickel, and lithium, significantly contributing to the circular economy and sustainable material reuse”. The specialized nature of these roles means that while the number of jobs is limited, the impact of these positions is substantial in promoting sustainability and resource efficiency.

4.2.6. Manufacturing and Reuse

Incorporating recycled components into new battery manufacturing is a dynamic phase that blends scientific knowledge with practical application. Materials science professionals play a crucial role here, “During this period, these professionals played critical roles in creating complicated techniques for smoothly combining recycled components into fresh battery manufacture. This stage generates a moderate job market, providing chances for talented people at the crossroads of scientific understanding and hands-on production problems”. The moderate number of jobs created in this phase highlights the importance of skilled personnel who can bridge the theoretical and practical aspects of battery manufacturing.

4.2.7. Research and Development

The Research and Development (R&D) phase is vital for driving innovation in battery technology and recycling methods. This phase offers high-quality positions that are crucial for advancing the industry. Respondents emphasized, “Skilled researchers and scientists are highlighted as critical contributors in materials science, energy storage, electrochemistry, and lithium-ion technology expertise. Their jobs bridge the gap between theoretical understanding and obstacles, propelling battery technology progress”. R&D roles, while fewer in number, are pivotal for fostering innovation and improving the overall efficiency and sustainability of the recycling process.

4.2.8. Administrative and Management Roles

Administrative and managerial roles are essential for the smooth operation of the recycling process. These positions encompass various functions: management, finance, marketing, regulatory compliance, and logistical coordination. Respondents from multiple sectors noted, “These tasks include management, finance, marketing, regulatory compliance, and logistical coordination. Administrative professionals in battery recycling oversee day-to-day operations, manage budgets, ensure compliance with environmental regulations, handle marketing and public relations, and coordinate logistics for the collection, transportation, and processing of used batteries”. These roles ensure operational efficiency and regulatory compliance, contributing to developing project management, finance, human resources, and regulatory compliance positions.

4.2.9. Factors Influencing Employment Potential

Several factors, including sector expansion, government legislation, and technological advancements, influence the overall employment potential in the LIB recycling sector. Respondents agreed, “The number of jobs to be created depends on several factors, including the scale of EV adoption, the volume of used batteries in circulation, regional demand for EVs, and the efficiency of collection and transportation networks. Government initiatives and incentives can help to develop the business. Subsidies, tax breaks, and laws encouraging EV batteries’ recycling and long-term management can spur investment and employment development”. The interaction of these elements emphasizes the industry’s dynamic character and ability to contribute considerably to job creation and economic growth.

Figure 4 illustrates employment opportunities in South Africa’s LIB recycling sector at different stages. The process commences with labor-intensive jobs in collection and transportation and progresses through disassembling and testing, mechanical crushing, and hydrometallurgical processes, which necessitates progressively more specialized skills. Opportunities for highly trained professionals and researchers are available during the later stages, including recovering valuable metals, manufacturing, and research and development. Administrative and management positions that are cross-cutting in nature guarantee operational efficiency, compliance, and logistical coordination throughout the recycling process. Furthermore, the sector’s potential for sustainable employment and dynamic growth is further shown by the significant impact of government incentives, technological advancements, and EV adoption rates on job creation across all phases.

The findings are consistent with Transition Management Theory, highlighting the need for multi-level governance, stakeholder involvement, and strategic innovation in promoting sustainable transitions. Each phase of the LIB recycling process necessitates coordinated efforts across all levels of expertise and industries, demonstrating the necessity for a comprehensive strategy as proposed by Transition Management Theory. Circular Economy [80] concepts stress resource efficiency, waste reduction, and continuous material reuse, all essential to the LIB recycling and manufacturing steps. Industrial Ecology principles emphasize the interdependence of natural systems and economic activity, aiming to achieve a harmonic balance between environmental health and economic operations. According to the findings, each stage of the LIB recycling process provides various job prospects, ranging from labor-intensive to high-quality research positions. EV adoption rates, technology improvements, and supporting regulations impact employment generation possibilities. The theme analysis’s findings are a solid platform for future research and policy development to promote sustainable practices and economic growth in a dynamic energy landscape.

5. Discussion

The study demonstrates that the growing utilization of EVs in SA has created substantial economic and employment opportunities in the emerging LIB recycling industry. Refs. [29,42] revealed the same findings, emphasizing the substantial economic potential of LIB recycling in developed countries. Nonetheless, although previous studies concentrated on areas with established recycling infrastructure, our findings indicate that SA’s fledgling infrastructure poses distinct issues, as noted by [45] in emerging economies. Addressing the existing challenges in recycling infrastructure requires substantial financial investment and ingenuity, notwithstanding the early stages of development. Research in developed regions, such as [27], highlights the need for strong legislative frameworks in enhancing recycling systems. Conversely, our results demonstrate that SA encounters an essential gap in this domain, an issue similarly identified by [47] for other emerging economies. This situation corresponds to TMT, highlighting the importance of strategic innovation and involving stakeholders to navigate and oversee transformative transitions [25,26].

The growing amounts of wasted LIBs from EVs represent a crucial turning point marked by substantial changes in the recycling sector [21,81,82]. This tendency is consistent with worldwide views, but SA’s specific circumstances bring distinct problems and possibilities. In this ever-changing context, policies have a double duty. They are regulatory tools and influential catalysts encouraging sustainable practices and innovation. It is essential to have policies that focus on integrating EVs more comprehensively into the wider energy environment. These measures involve the integration of renewable energy sources and grid storage technologies to reduce the environmental consequences of decommissioning batteries [83,84,85]. This comprehensive integration aligns with TMT’s support for diverse viewpoints and well-planned changes.

For SA to effectively enhance its infrastructure for recycling EV LIBs, legislative frameworks, and creative practices must align. This integration’s complex and varied features highlight the need for collaborative efforts across several entities, such as educational institutions, commercial enterprises, and governmental bodies. The growing interest and enthusiasm for EVs are being used to drive the importance of LIB recycling in SA. This developing recycling phase is crucial in shaping sustainable practices in the automotive and energy sectors. The necessity for synchronized efforts and originality is at the core of TMT’s strategy to promote lasting transformations by including all relevant parties [60,61].

The widespread use of LIB recycling goes beyond just meeting environmental rules; it is a crucial requirement for economic and scientific advancement [43,86,87]. Prior research, like that of [37], has demonstrated that LIB recycling markedly decreases greenhouse gas emissions and alleviates environmental hazards in countries like China. Our findings corroborate these views, although they underline that SA’s environmental advancements may require a protracted period to materialize due to its inadequate recycling infrastructure. It is essential to have new solutions and financial investments to expand the recycling infrastructure and deal with emerging problems related to the development of battery materials and technologies. Research conducted by [44,88] highlights the significance of sophisticated technology in expediting the LIB recycling process in industrialized nations. Our research also indicates that technological innovation is essential for SA, although it emphasizes that the country would probably want international collaboration and public-sector assistance to surmount these obstacles.

The employment potential is apparent throughout the process, highlighting the many skill sets required for EV batteries’ effective and sustainable maintenance. Ref. [44] comparable findings indicate that LIB recycling has substantial job-generation opportunities in developing countries like India. Our research demonstrates that, in SA, job prospects are mainly present in the collecting and disassembly stages, yet local knowledge is deficient, similar to that of other developing countries. Skilled workers play essential roles in the many phases of collecting, sorting, and processing, enhancing the effectiveness of recycling and making a substantial contribution to the circular economy [63]. The requirement for expertise in energy storage principles, material properties, and chemical reactions, specifically in mechanical crushing and hydrometallurgical processes, underscores the multidisciplinary nature of these roles. Specialists employ state-of-the-art technology for sustainable resource management to recover essential metals, mainly from compounds such as black mass. This is consistent with the ideas of Industrial Ecology, which emphasize the interdependence between natural systems and economic activities to enhance environmental well-being and sustainability [66,67,68].

The importance of skilled labor in incorporating recycled materials into battery production’s manufacturing and reuse processes, reducing ecological effects, and advancing a circular economy is highlighted [27,89]. The research and development stage, led by skilled scientists and researchers, is the primary driver of ongoing progress in battery technology. Its goal is to create energy storage solutions that are more efficient, cost-effective, and environmentally sustainable. This has been highlighted in studies by [88,90,91]. TMT’s strategy centers on continuous innovation in research and development to direct transformative processes towards achieving sustainable development.

Administrative professionals in battery recycling oversee daily tasks, manage finances, ensure compliance with environmental policies and standards, organize promotional activities and public relations, and coordinate logistical processes for the collection, transportation, and processing of used batteries [92]. Efficient teams are crucial in managing many aspects of extensive recycling facilities [93,94]. Consequently, positions in project management, finance, human resources, and regulatory compliance have been created, resembling those in other industries and highlighting the universal importance of these responsibilities in improving organizational efficiency.

Several factors substantially impact employment opportunities within the EV LIB lifecycle sector. Technical advancements, job automation, governmental regulations, and sector expansion impact employment conditions [95,96,97,98]. The job prospects created are contingent upon variables such as the level of EV adoption, the number of used batteries in circulation, the demand for EVs in specific areas, and the efficiency of collecting and transportation networks. Other factors to consider are the degree of automation in the recycling process [99,100,101] and the market demand for recycled battery components [102,103,104]. Facilities with high levels of automation may require fewer workers than those that rely on manual or semi-automated processes. Battery recycling technology’s widespread adoption improves efficiency and lowers costs, expanding job opportunities. Government initiatives and incentives are crucial in promoting industrial growth [105,106,107]. Government incentives such as subsidies, tax cuts, and favorable legislation promote investment and facilitate employment growth. The interaction of these aspects highlights the dynamic nature of the sector and its ability to contribute significantly to job creation and long-term economic growth. This is consistent with TMT’s focus on the significance of governmental assistance and regulatory frameworks in promoting sustainable industrial changes.

While many of the technological, legislative, and market concerns described in this research are similar to developing nations, South Africa’s peculiar socioeconomic and regulatory backdrop impacts its response to these issues. Limited recycling facilities and reliance on imported equipment hinder South Africa’s infrastructure and technology access [108]. On the policy front, regulatory limits and limited government subsidies have rendered significant dependence on public finance impractical [109]. As a result, local projects frequently rely on creative public–private partnerships, tax breaks, or industry-driven contributions rather than the large government subsidies found in other areas. Furthermore, South Africa urgently needs workforce development [53,79], with the unemployment rate remaining at 33.5% in the second quarter of 2024, according to the Statistics South Africa Quarterly Labour Force Survey. Recycling initiatives in South Africa have shown promise for employment generation while fitting with socioeconomic concerns. For example, establishing a glass trash recycling factory in Johannesburg alone was expected to generate around 21 jobs [110]. Recognizing this socioeconomic reality, the emphasis on job creation and skills development reflects South Africa’s distinct socioeconomic concerns, promoting the recycling industry as a dual-purpose solution to environmental and employment issues. South Africa provides a unique avenue for improving LIB recycling by overcoming these technological, legislative, and socioeconomic barriers through context-specific measures, which might serve as a model for other developing countries experiencing comparable limits. This sophisticated approach emphasizes South Africa’s unique and practical approaches to addressing recycling difficulties in a resource-constrained setting, serving as a model for sustainable recycling practices in other emerging countries.

The confluence of these research areas suggests a potential situation in which developments in battery technology not only fulfill the increasing need for energy storage but also fit with global environmental goals. Implementing a holistic approach that integrates knowledge from all fields is crucial to addressing the environmental impacts of batteries and creating meaningful employment opportunities that support a more sustainable and responsible energy future. The TMT approach emphasizes the use of multi-dimensional solutions to accomplish sustainable transformations.

Implications of the Study

The study’s findings provide significant practical insights and values that benefit multiple stakeholders, including governments, institutions, citizens, and academia. Figure 5 highlights the practical insights and value propositions for various stakeholders involved in the LIB recycling industry.

Governments: The research emphasizes the necessity of proactive policy measures to facilitate the development of a LIB recycling industry. Governments can leverage these insights to establish regulations and incentives that encourage sustainable practices and stimulate economic growth. Governments can develop strategic plans to boost local economies, reduce unemployment, and promote industrial development by comprehending the LIB recycling sector’s economic viability and job creation potential.

Institutions and industry leaders: The study emphasizes the economic prospects of the LIB recycling industry, thereby motivating institutions and industry leaders to invest in recycling technologies and facilities. This investment has the potential to establish a competitive advantage in the global market by fostering the development of a robust recycling infrastructure. By utilizing the results, institutions can encourage collaborations between academia and various sectors (automotive, mining, recycling) to enhance the efficacy and innovation of recycling processes.

Citizens: The investigation identifies various phases in the LIB recycling process that necessitate a wide range of skills, including research and development, as well as collection and transportation. The industry’s growth presents citizens with new employment opportunities. The research promotes environmental sustainability by addressing the recycling of LIBs, which directly benefits citizens by reducing waste and improving environmental health.

Academia: The study highlights the significance of continuous research and development in advancing battery technology and recycling methods. By utilizing these insights, academic institutions can concentrate their research endeavors on innovative solutions that improve the efficacy and sustainability of LIB recycling. Academia can create specialized educational programs and training modules that will equip the future workforce with the necessary skills to pursue professions in the LIB recycling industry. This is consistent with the study’s conclusions regarding the necessity of skill development and technical proficiency.

6. Conclusions

The study emphasizes the urgent need for SA to build a solid LIB recycling sector, motivated by its dual environmental conservation and economic growth objectives. With the shift towards EVs, the country faces significant waste management obstacles that necessitate establishing effective recycling systems. This emerging sector offers the potential to provide substantial employment opportunities across a wide range of positions, encompassing tasks such as battery collecting and transportation and cutting-edge research and development. The study proposes using Circular Economy concepts to manage LIB waste to promote resource efficiency, minimize waste, and maximize material reuse and recycling. This strategy aims to achieve both environmental sustainability and economic resilience. The development of this industry relies on technical innovations, supporting legislative frameworks, and strategic investments, all of which position SA to emerge as the leading nation in EV LIB recycling. The research utilizes an integrated sustainability framework that combines Transition Management Theory, Circular Economy principles, and Industrial Ecology concepts. This methodology ensures a holistic approach to tackling this organization’s environmental, economic, and social aspects. These findings give policymakers and industry stakeholders vital direction, highlighting this sector’s strategic significance in generating employment, fostering technical advancement, and promoting sustainable development. Moreover, the study emphasizes the need for ongoing research to investigate localized dynamics and broader effects, enhancing comprehension and guiding strategic development. By doing so, SA will be able to maximize the advantages of the worldwide transition to electric transportation, guaranteeing a future that is both sustainable and economically viable.

Future Research Directions

Further study is necessary to enhance the comprehension of localized dynamics and delve deeper into the economic, environmental, and social consequences of LIB recycling. Future research should strive to gather more detailed data and expand the study to include more locations to increase the generalizability of the findings.