Recycling: Malaysia’s EV Ecosystem Beyond Charging Station

With electric vehicle (EV) adoption surging in Malaysia, the government is finally placing emphasis on a soon to be growing challenge: managing used EV batteries. By 2050, the country could face nearly 900,000 depleted lithium-ion batteries, which, if not properly managed, may cause serious environmental and health risks.

Outgoing Natural Resources and Environmental Sustainability (NRES) Minister Nik Nazmi Nik Ahmad recently said an Extended Producer Responsibility (EPR) policy is in the works. This would make manufacturers responsible for collecting and recycling EV batteries at the end of their life.

Nik Nazmi emphasised that companies selling EVs in Malaysia should retrieve the batteries they introduce. Talks with automakers have begun, though still informal. The Environment Department will oversee the EPR framework and is drafting disposal guidelines for EV batteries and solar panels, both considered scheduled waste components.

The urgency is growing fast. EV registrations jumped from just 274 units in 2021 to 21,789 by end-2024. In the first four months of 2025 alone, nearly 8,000 new EVs were registered - an 80% year-on-year rise.

With batteries lasting around eight years, roughly 40,000 used units will need handling by 2030. That number is projected to soar to 330,000 by 2040 and hit 870,000 by 2050 - posing a serious threat if infrastructure isn't scaled up.

Globally, other nations are moving ahead. China aims to recycle 70% of EV batteries by 2030. The EU mandates recyclability in design. Japan involves local councils in collection, while the U.S. has invested over US$3 billion (RM13 billion) in recycling and second-life R&D.

Industry voices in Malaysia are weighing in too. On a recent episode of the Tekan Habis Podcast, BMW Malaysia’s Director of Communications and Head of Sustainability Sashi Ambi said the country needs just one player capable of processing “black mass” as the other processes can be handled by automakers.

However, “black mass” processing which is the final step in recovering precious metals like nickel, cobalt, and lithium is extremely costly. As investment required is high thus far no party has stepped up to take this ownership hence the industry has to collectively work on it with the government taking the lead.

Sashi went on to add - advanced recycling can recover up to 90% of valuable minerals for reuse in new batteries. Having local capacity would reduce reliance on overseas processors and boost Malaysia’s EV ecosystem.

Meanwhile, environmental groups want stronger action. Sahabat Alam Malaysia president Meenakshi Raman called for legal obligations on EV makers to take back used batteries equal to what they sell, with penalties for non-compliance.

She also urged tax incentives for companies developing longer-lasting or easily recyclable batteries. Only certified firms should handle used batteries to ensure safety.

Meenakshi suggested domestic recycling facilities and a battery passport system - a digital tool tracking battery details like composition, origin and recyclability, making reuse or recycling more efficient.

She added that before full recycling, batteries could be repurposed - for instance as a battery energy storage system (BESS) to store solar energy extending their usefulness and cutting waste.

Environment Protection Society VP Randolph Jeremiah echoed these points, adding consumers should be legally required to return batteries to proper drop-off points to create a closed-loop system where both users and producers share responsibility.

EcoKnights president Amlir Ayat meanwhile called for a task force to oversee EV battery waste, especially non-recyclables. Without strict monitoring, toxic waste could be mishandled. He also urged public consultation and clear communication to avoid regulatory gaps.

Nik Nazmi reaffirmed that recycling is the most practical, sustainable path. It reduces mining and supports Malaysia’s energy transition. With EVs and solar panels adoption on the rise, clear regulations and robust systems are essential.

The Malaysian Investment Development Authority (MIDA) predicts the battery market will grow 5.28% annually between 2022 and 2027, showing strong potential and investor interest.

Globally, the EV battery recycling industry is expected to hit US$6.5 billion (RM28 billion) within five years. With legal enforcement, infrastructure investment, and cooperation across sectors, Malaysia could turn this challenge into a sustainable success.