Lithium’s second life

by Yasmine Bélisle

Presented to Eleni Panagiotarakou

LOYC 240/ POLI 280, Global Environmental Issues and Ecological Justice

Concordia University – 2025

This paper examines Canada’s approach to reducing the environmental impact of lithium

mining, with a focus on battery recycling, using Quebec as a case study to explore EV

industry incentives, subsidies, and recycling initiatives across various provinces. Canada

and Quebec aim to position themselves as leaders in sustainability by undertaking

significant initiatives, such as shifting part of their economy from oil and gas to more

renewable resources. According to the government, Canada will reduce its emissions by 40

to 45% below 2005 levels by 2030, (Environment and Climate Change Canada., parag.3),

although it's important to remember we are still «emitting the second-highest per capita

greenhouse gas (GHG) emissions among OECD countries» according to 2022 statistics

(Tiseo, 2024, parag.1). Governments have implemented policies and subsidies to support

the electric vehicle (EV) industry as a strategy to reduce greenhouse gas (GHG) emissions

and foster sustainability. Although lithium mining is currently unavoidable for providing

efficient car batteries, it’s a finite resource, and its demand (is) «expected to grow by more

than 500 per cent to reach 2.2 million tonnes by 2030» (Kaunda, 2022, p.1). Lithium

batteries, (LiBs), are currently the most efficient type of rechargeable batteries for EV’s,

though it has been proven that governance efforts must be done to develop the battery

recycling industry further as: «By doing so, limited and expensive materials can be re-used

without the need for additional purchasing» (National Library of Medecine, 2023, chapter
7). This research paper will address the current state of lithium mining by looking closely

at recent efforts aimed at mitigating the negative impacts of this industry, while advancing

sustainable development in the EV sector, with a special attention to battery recycling and

evaluating it as a sustainability effort.

The issue of lithium mining and battery recycling is relatively recent as the global lithium

demand has grown a lot in the last 10 years, due to government mandates promoting EV’s.

LiBs continue to be the most efficient and widely used option for EV’s as they «offer higher

energy storage capacity and faster charging capabilities» (Batteries Inc, 2023, para.39),

compared to other batteries. However, it’s important to note that we still lack significant

«data on the impacts of direct extraction and processing of lithium metal» and research has

at oftentimes focused more on the environmental impacts of finished lithium batteries (...)

using life-cycle assessment methodologies (Kaunda, 2022, p.8). This is a significant point

to note as this paper focuses on evaluating battery recycling and regulation as a solution,

rather than exploring other approaches such as water treatment, waste minimization, or

lithium brine processing. To understand the policy frameworks addressing these issues, we

will examine how the European Green Deal (EU, 2025, para.3) led to the adoption of the

2023/1542 battery regulation—an example of a unified legal framework ensuring

consistent implementation and compliance. Firstly, this regulation integrates the principles

of a circular economy, including mandatory recycled content, reducing the need for

harmful mining operations worldwide (EU, 2023, para.30). Secondly, it forces battery

manufacturing companies to disclose their carbon footprint from production to recycling,

which involves the process of life-cycle thinking (EU, 2023, para. 27). Enforcement in
Canada isn’t as standardized, as there isn’t a unified federal regulation, which leaves more

legroom for each province to decide on the legal requirements for battery manufacturing

(ICCT, 2023, p.31). T&E, a well-regarded nonprofit organization specializing in transport

and environmental policy in Europe, published an article analyzing Europe's current

recycling capacity, stating that it’s «10 times below where it needs to be in 2030, or in 5

years time» (T&E, 2025, para.5). The most similar initiative Canada has done was in 2022,

when it implemented the Critical Minerals Strategy, which positions the nation’s goals

around the development of the mining industry, marking its economic strategy around the

development of critical materials deemed to be essential for the energetic transition

(Government of Canada, 2022, p.7). This Strategy only offers strong recommendations,

and omits to setting mandatory national recovery targets, unlike the EU’s previously

mentioned regulation, which confirms that Canada is prioritizing economic development

over environmental protection. Therefore, Canada has conceptualized a few solutions but

still hasn't actually designed, or put them into action efficiently. These recommendations

may be implemented at the provincial level or by private actors, but the absence of strict

regulations, combined with the mineral industry's central role in Canada’s economy, makes

the transition to a greener, more renewable economy challenging. Although ; «Current

forecasts show supply deficits if critical mineral production, processing and recycling are

not increased» (Gov. of Canada, 2022, para.23), Canada’s research efforts in this area,

though encouraged, lack clear and actionable goals. For instance, the National Research

Council of Canada, more specifically the Clean Energy Innovation Research Centre’s

advanced clean energy program, centered around battery energy storage, claims to

prioritize «the growth of Canada's battery supply chain» (Gov. of Canada, 2024, para.4),
This focus on economic expansion underscores Canada's tendency to prioritize industry

development over tangible sustainability goals. The following section examines provincial

developments around the issue of LiB recycling. In 2016 Ontario introduced the Resource

Recovery and Circular Economy Act to enforce extended producer responsibility (EPR)

through a regulatory framework. However, the act lacks specific guidelines for lithium-ion

batteries (LiBs) and only regulates standalone batteries under 5 kg (RPRA, 2025, para.4).

Similarly, Quebec's Regulation Respecting the Recovery and Reclamation of Products by

Enterprises does not address LiBs. Moreover, in Quebec, we can see that private sector

initiatives have been developing LiB recycling, such as Lithion Technologies, a startup that

«sustainably produces strategic materials from lithium-ion batteries» (Lithion Technoloies,

2025, para.2). Initiatives like these, although rare, support the principles of a circular

economy, and this startup serves as an example of commitment to ESG principles. The

following section of this paper will present Quebec’s current situation, and its governance

challenges associated with its EV incentives.

Subsequently, Quebec launched its Plan for the Development of Critical and Strategic

Minerals (QPDCSM) (2020-2025), to continue its ecological and technological transition,

further develop its mining sector and attract potential investors (Government of Quebec,

para.6). Claiming the circular economy to be at the center of their plan, their financial

support encourages the development of many company projects to promote their

development and innovation, such as VanadiumCorp Resources Inc., NanoXplore Inc.,

Technologies Graphite Vertes Inc. (GGT) and even the Lithion Project mentionned above

(Salatian, 2023, para.4). However, prior to the QPDCSM, Quebec had organized and held
meetings to gather the views of many different actors, such as Indigenous communities,

regional partners and environmental, municipal, industrial and mining sectors as well. It

was stated that a circular economic and recycling strategy should be at the core of the CSM

development to optimize the life-cycle of these non-renewable ressources (Government of

Quebec, 2019, p.6) Furthermore, it states that Quebec should «aim to cut back on mining

through source reductions combined with re-use and recycling» (Government of Quebec,

2019, p.7). Additionally, in 2023, Quebec, the Canadian Vehicle Manufacturers’

Association and Global Automakers of Canada launched and funded an EV Battery

Recovery Program «to help recover electric vehicle batteries that have reached their end of

life» (Mehanaz, 2023, para.2). These recent initiatives represent progress toward

sustainability and contribute to the province's transition to a greener economy. On the other

hand, this fast paced transition has raised concerns from many experts and actors. In 2021,

Dr Jeff Dahn stated, following Quebec’s proposed recycling regulations about obligating

manufacturers to reclaim their batteries after 10 years, even if they ‘re still working

efficiently: «that this policy will encourage manufacturers to install inferior batteries with

a limited 10-year life span in order to meet the requirements of this proposed regulation»

(Dahn, 2021, para. 3). This proposed regulation would’ve created a counter-effect on

circular economy and favourably, Quebec has since then shifted its approach, by adopting

other strategies such as: Quebec’s Electric Vehicle Charging Strategy (2023-2030), which

focuses on deploying charging infrastructures, supporting business environments, all

orchestrated by 3 players, the government, municipalities and Hydro-Quebec (Government

of Quebec, 2023, p.2) This demonstrates that Quebec is willing to adapt and collaborate

with different actors to promote strategies ensuring a shift to a more sustainable economy.
In addition, Quebec also started providing assistance for the purchase or lease of new

electric vehicles, though the program has been temporarily suspended as of February 2025

as they have received too many demands. This initiative, started in 2012, subsidizes up to

$4,000 for a fully electric vehicle and is expected to end in 2027. (Government of Quebec,

2025, para.2). Even though this sounds like a very enticing way to get consumers to buy

EV’s, this program remains highly inaccessible to several, as (EV) : «subsidies use scarce

public funds, are often received by high-income purchasers who would have bought the

vehicle even without the subsidy, and have only limited effectiveness in driving Quebecers’

overall adoption of EV’s», as stated in the report by the Max Bell School of Public Policy

at McGill University (Ragan and al., 2020, page 5). Public policy instruments, such as this

economic one, intended to decrease relative costs of certain environmental choices, favour

certain groups, particularly the upper middle class and fail to ensure equitable access across

income levels. This highlights potential blind spots in addressing a just societal transition.

The report instead proposes other alternative uses to the Green Fund, eliminating the EV

subsidies and proposing to replace them with other transportation policies. They each

answer to different policy priorities, the first one being the advancement of Quebec as an

innovation hub by increasing the support for businesses in their emissions reduction efforts,

and the second one to decrease emissions in the transportation sector, «enabling people to

commute through lower-emitting means» (Ragan and al., 2020, p.43). Investing in large-

scale public transit projects not only stimulates economic growth but also directs

substantial public funds into multiple sectors, boosting overall economic activity (Ragan

and al., 2020, p.49). The current situation in Quebec shows provincial commitment to

greening the economy and a progressive transformation towards renewable energy

sourcing, although its policies are still overly oriented towards economic growth, which

undermines sustainability efforts.

Taking into consideration the sustainable development policies mentioned above, we can

confirm that most of these are centered around the management of the economic

externalities related to lithium mining and promoting their respective economies by

investing in new sectors. These policies take a conservationist rather than a preservationist

approach, focusing not on reducing dependence on finite resources but on ensuring their

continued availability to sustain energy-intensive lifestyles in Europe and Canada. The

latter’s approach to lithium mining and policies concerning EV’s focus more on economic

adaptation than direct accountability for sustainability issues. While initiatives like

Canada’s 2022 Critical Minerals Strategy and Quebec’s Plan for the Development of

Critical and Strategic Minerals (2020-2025) promote research and industry incentives, they

primarily aim to attract investment rather than enforce stricter environmental responsibility.

Battery recycling remains costly and underfunded, making it difficult for governments to

prioritize. However, ensuring the principle of circularity in the EV sector is crucial, as our

continued reliance on newly mined lithium exacerbates environmental harm. Quebec’s EV

incentives, such as its Electric Vehicle Charging Strategy (2023-2030), make the transition

attractive to customers, yet they fail to address deeper systemic changes needed to achieve

true sustainability. Investments in public transportation would provide a more inclusive and

long-term solution by reducing overall emissions rather than shifting dependence to

another resource-intensive industry.

Furthermore, Canada’s approach to the EV transition prioritizes economic growth over

direct emissions reductions. While the EU’s 2023/1542 battery regulation sets clear

recycling mandates and lifecycle transparency, Canada’s regulatory framework remains

fragmented, with uneven adoption across provinces. Quebec’s Plan for the Development

of Critical and Strategic Minerals (2020-2025) demonstrates an effort to integrate circular

economy principles, but its focus remains on attracting industry investment rather than

enforcing strict sustainability measures. The challenge of battery recycling’s economic

feasibility means that without substantial government intervention, companies and

investors are unlikely to prioritize it over new lithium extraction.

Quebec’s policies contrast with other provinces, such as Alberta, which has been slower to

transition away from fossil fuels (Cambridge University Press, 2018, para.1) This uneven

commitment to sustainability exposes gaps in Canada’s broader regulatory framework.

Additionally, the reliance on EV subsidies as a primary green transition strategy raises

concerns about accessibility, as these incentives mainly benefit wealthier households.

Meanwhile, public transportation, a crucial tool for equitable sustainability, hasn't received

as much attention, which shows how Quebec's provincial government favours policies that

cater to private vehicle ownership rather than reducing overall car dependency.

Ultimately, Canada’s policy approach has been geared toward integrating EVs into the

economy rather than directly tackling GHG emissions. While battery recycling is an

important step, it remains costly and requires significant investment to scale effectively.

Without stricter federal regulations mandating recycled content and ensuring corporate
accountability, the transition risks reinforcing existing economic inequalities and resource

dependencies. A more sustainable path would involve not only strengthening recycling

initiatives but also prioritizing alternative solutions such as improved public transportation

and reduced demand for lithium-intensive technologies.

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