Circular Economy and Sustainability in Lithium-Ion Battery Development in China and the USA

Abstract

The surge in electric vehicles (EVs) and renewable energy has made lithium-ion batteries (LIBs) critical to the global energy transition. This review examines how LIBs contribute to a circular economy, focusing on China and the United States as key actors shaping the battery value chain. We analyze technological advancements, market growth, supply chain dynamics, ESG risks, and strategies for recycling, reuse, and next-generation chemistries. China’s approach centers on vertical integration and scale, while the U.S. emphasizes innovation, policy incentives, and diversification. Despite progress, gaps remain in closed-loop systems, ethical sourcing, and supply chain resilience. Realizing sustainable battery growth will require coordinated efforts in technology, governance, and international collaboration to align resource efficiency with long-term environmental and economic goals.