Techno-Economic Evaluation and Policy Recommendations for Lithium-Ion Battery Recycling in Indonesia's Circular Economy Framework

Lithium-ion battery (LIB) recycling methods present different technical, economic and environmental challenges. This paper aims to evaluate LIB recycling methods and assess three main aspects: economic, environmental, and energy consumption. Furthermore, this paper proposes a circular economy model for LIB recycling and provides policy recommendations. This paper concludes that, from an environmental analysis, direct recycling is the most sustainable method. Energy consumption calculations indicate that hydrometallurgy has the lowest energy consumption. Economic analysis reveals that recycling NMC through both hydrometallurgy and pyrometallurgy is feasible in Indonesia, with hydrometallurgy offering the highest profitability. Based on the limitations-possibilities matrix, Extended Producer Responsibility (EPR) is the most suitable circular economy strategy in Indonesia. The following recommendations are proposed for the Indonesian government: incentives for recycling LIB, investment in collection points, standardization of design and labeling, clear stakeholder responsibility, and integration of spent LIB into EPR regulations.