This NY Climate Exchange working paper explores how the U.S. can build a circular economy for batteries and critical minerals to strengthen domestic supply chains, reduce environmental impacts, and support sustainable economic growth.

As electric vehicle (EV) adoption and energy storage deployment accelerate, the study highlights the need to move beyond the traditional “take–make–dispose” model toward a closed-loop system. It outlines practical strategies for:

• Extending battery life through data management and reuse,

• Developing second-life applications, and

• Scaling recycling infrastructure to recover critical minerals.

The paper emphasizes the leadership role of cities and regional ecosystems in developing local circular battery markets, connecting EV and stationary storage systems, and sharing best practices. By advancing policies such as Extended Producer Responsibility (EPR) and battery data transparency, and by fostering regional collaboration, the U.S. can enhance grid resilience, reduce mining dependence, and set a global benchmark for sustainable resource management.