Advancing Circularity in Battery Systems for Renewable Energy: Technologies, Barriers, and Future Directions

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Abstract
Integrating circular economy (CE) principles into battery design is critical for enhancing sustainability in energy storage, as lithium‐ion batteries grow essential for renewable energy and electric mobility. However, raw material depletion, hazardous waste, and inefficient end‐of‐life (EoL) practices threaten long‐term resource and environmental sustainability. This study reviews 94 sources, synthesizing material flow analyses, design innovations, recycling technologies, and policy frameworks to assess CE applications across the battery lifecycle. Fourthemes emerge: 1) recovery of critical materials like lithium, cobalt, and nickel via emerging recycling methods that reduce energy consumption and environmental impact; 2) design innovations such as modularity and disassembly‐oriented approaches that enable reuse and efficient resource recovery; 3) second‐life battery use in stationary renewable energy systems to extend lifespan and lower costs; and 4) regulatory mechanisms, including extended producer responsibility and digital product passports to support circular practices. Key barriers include limited recycling infrastructure, complex chemistries hindering disassembly, lack of data transparency, and fragmented regulations reducing producer accountability. Promising solutions involve low‐impact recycling, standardized modular designs, blockchain‐based material traceability, and harmonized policies enforcing EoL responsibility. The study proposes a forward‐looking framework combining technological innovation and policy reform driven by interdisciplinary collaboration to transform batteries into regenerative assets aligned with CE goals.

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