From Vision to Action: GECC Launches the Global Energy Circular Economy Coalition and Circular Battery Design Guidelines

By 2040, the global battery recycling market alone is projected to exceed RMB 1.2 trillion, creating more than 10 million jobs, while the International Energy Agency projects demand for battery-critical minerals will increase fivefold over the same period. Meeting that demand sustainably will require not only greater recycling capacity, but common design standards and business models that keep materials in productive use for longer.

CATL became the first battery manufacturer to achieve carbon neutrality across its core operations in 2025, certified under ISO 14068-1, with full value-chain carbon neutrality targeted by 2035. Much of the remaining challenge lies in mining and raw material processing rather than manufacturing. Circularity will play a central role in meeting future demand without proportional increases in virgin material extraction. The initiatives announced aim to help build the common frameworks needed to accelerate that transition.

Earlier the same day, at Octopus Energy's Energy Tech Summit, CATL and Octopus Energy announced Europe's first battery-swapping joint venture, targeting 300,000 electric trucks and 30 hubs across Europe by 2035, with the first UK hubs scheduled to open in 2027. The partnership demonstrates the type of commercially viable circular business model the coalition aims to accelerate.

Miranda Schnitger, Climate Lead at the Ellen MacArthur Foundation: "Circular economy approaches were key to tackling the 45% of emissions that come from how we produce and consume."

Jiang Li, Vice President and Board Secretary, CATL: "Last year we set the direction: decouple battery growth from virgin material extraction. Today, the industry is beginning to build the common rules that will help deliver it. That is not only a climate opportunity, but an industrial one."

Greg Jackson, Founder and CEO, Octopus Energy Group: "By designing batteries to be swapped, optimised, shared and reused thousands of times, we can squeeze every drop of value out of the materials we already have, rather than digging up more. That's why our battery-swapping joint venture with CATL matters; we are taking the world's best hardware, combining it with smart energy tech to make it cheaper and more flexible, and building a completely self-sustaining transport network."

Initiative I: Circular Battery Design Guidelines

The circular battery design guidelines establish a common methodology for circular battery design across a range of mobility applications. As a founding partner, CATL brings practical experience from battery manufacturing, recycling and service operations to support their development. The methodology is intended to inform procurement standards, investor frameworks and future regulatory discussions, including the evolution of European battery policy.

Developed to address fragmentation across approaches to repair, second life and recycling, the guidelines provide a shared basis for comparing circular performance across the market. They aim to help buyers evaluate products, investors assess long-term value, and policymakers reference a consistent framework.

The Ellen MacArthur Foundation provides a neutral platform through which companies across the battery value chain can develop shared principles that no single organisation could establish alone. The working group is now underway, with publication planned for 2027.

Initiative II: Business Coalition for Circular Business Models

The coalition for circular business models is a policy and industry platform established to accelerate the adoption of circular business models across mobility and energy. With battery swapping already operating across more than 1,650 stations in 127 Chinese cities, the focus is shifting from demonstrating technical feasibility to creating the commercial, regulatory and financing conditions required for international scale.

CATL contributes practical experience through its battery-as-a-service and battery-swapping businesses, including the expanding Choco-Swap and QIJI networks, providing operational insights that can support wider deployment globally.

The coalition also seeks to establish common approaches for evaluating circular battery assets, including service history, degradation data and second-life value, providing investors, fleet operators and policymakers with greater confidence and reducing market uncertainty.

CATL Advances Circular Battery Systems

CATL continues to scale circularity across its operations. In 2025, Brunp Recycling processed 210,000 tonnes of end-of-life batteries, recovering 99.6% of nickel, cobalt and manganese, with 80% of recovered materials returning directly into CATL's battery production.

Rather than treating recycling as the end of a product's life, CATL integrates circularity into battery design, manufacturing, use and recovery as a connected system.

Furthermore, CATL is accelerating the commercialization of sodium-ion batteries, with plans to deliver its first sodium-ion energy storage systems to customers starting this September. This initiative expands the energy storage technology roadmap beyond lithium, cobalt, and nickel, enhancing material supply resilience and cost stability.

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