Recycling Reimagined: Canada’s Battery Pivot

Public funding and research ties support AI-driven metal recovery as Canada seeks to strengthen domestic battery resilience

8 Nov 2025

A shift is under way in Canada’s battery industry as attention turns from mining new materials to recovering metals from used electric vehicle batteries.

As volumes of end-of-life batteries begin to rise, companies and policymakers are examining whether recycling can reduce costs, limit environmental impact and strengthen domestic supply chains. Advances in artificial intelligence are emerging as a potential tool to address long-standing barriers to scaling the sector.

Battery recycling has historically been costly and energy-intensive. Conventional processes often generate significant waste and struggle to adapt to rapidly changing battery chemistries. That uncertainty has deterred investment, even as forecasts point to a sharp increase in retired batteries over the coming decade.

New approaches seek to address those constraints. Vancouver-based pH7 Technologies is developing systems that apply artificial intelligence to process control and data analysis in metal extraction. Instead of operating under fixed conditions, the technology uses real-time data to adjust chemical processes, allowing facilities to handle mixed battery materials more efficiently. The company says the method can improve recovery rates while reducing waste.

Although adoption of AI across the recycling industry remains uneven, such research reflects broader efforts to make secondary metal recovery commercially viable. Support from the National Research Council and collaboration with Germany’s Fraunhofer Society indicate progress in moving these technologies from laboratory testing to industrial application.

Policy developments provide further context. The European Union has introduced stricter recycling targets and traceability rules for batteries, increasing pressure on manufacturers to secure recycled content. Canada has taken a different approach. While promoting innovation and critical mineral development under its Canadian Critical Minerals Strategy, Ottawa has yet to introduce binding national recycling mandates.

Industry participants say challenges remain, including high capital costs, shortages of specialised labour and the need for long-term supply agreements with battery manufacturers.

Even so, recycling is increasingly viewed as a strategic component of battery supply chains rather than a peripheral activity. As global demand for electric vehicles expands, the ability to recover and reuse critical metals may help Canada reduce exposure to raw material volatility while supporting its broader clean energy objectives.