The transition to electric vehicles (EVs) is a crucial step toward a cleaner future for transportation in the Philippines. To make this industry fully sustainable, it is necessary to implement a circular economy that emphasizes the recycling and reuse of materials.

The government is actively developing mechanisms to ensure that EV batteries do not become waste in the future. Through Republic Act No. 11697, or more commonly known as EVIDA, the foundation was established for the development of a comprehensive roadmap for the industry [1].

A modern laboratory where electric vehicle battery components are inspected for potential recycling and reuse. — Image created by AI

The role of EVIDA in the circular economy

EVIDA is not only focused on promoting the use of electric vehicles. It also pays attention to the responsible management of the entire lifecycle of vehicles and batteries [4]. The optimization of the electric vehicle lifecycle from design to disposal in the Philippines is a priority for agencies to prevent pollution.

Manufacturers must comply with DENR standards for the disposal and recycling of batteries. This process is essential to recover valuable metals such as lithium, cobalt, and nickel that can be reused in production.

Producer responsibility under the law

The Extended Producer Responsibility (EPR) Act of 2022 strengthens the accountability of companies [2]. Importers and manufacturers are obligated to have a program for the recovery of used batteries.

This law aims to reduce waste and encourage businesses to implement better waste management systems. This is a critical part of the circular economy for electric vehicle batteries: recycling and reuse strategy being implemented in the country.

Fiscal incentives for investors

The government encourages the private sector to invest in recycling technology. Under the Board of Investments’ Strategic Investment Priority Plan (SIPP), battery recycling facilities receive incentives [5].

Qualified companies can obtain an Income Tax Holiday (ITH) for four to seven years. Furthermore, there is also duty-free importation for machinery used in processing e-waste from green projects.

Strengthening the local industry

To accelerate growth, Executive Order No. 12 removes tariffs on imported EVs and their components [3]. This measure aims to make electric vehicles more affordable for Filipinos.

The increase in EVs on the road means a need for more charging stations. The construction of these infrastructures is also supported by incentives under EVOSS for the fast processing of permits.

Second-life applications for batteries

Not all batteries that are no longer suitable for vehicles should be disposed of immediately. The DOE promotes their use as stationary energy storage systems [4]. Batteries that still have 70-80% capacity can serve as electricity storage for solar farms.

This initiative extends the life of batteries before the final recycling process. It demonstrates the country’s creativity in using technology for the environment.

Challenges and next steps

Although laws are in place, technical capacity for large-scale recycling remains a challenge. Deeper collaboration between the government and industry associations is necessary.

Continuous training of workers in new technologies is essential. Through cooperation, the success of the circular economy in the Philippine transportation sector can be ensured.

More Information

  1. EVIDA: Republic Act No. 11697, which sets the national framework for the development of the electric vehicle industry in the Philippines and accelerates its adoption in the country.
  2. EPR Act: Republic Act No. 11898, which mandates companies to be responsible for the entire lifecycle of their products, including the recycling of materials.
  3. EO 12: An executive order that removes tariffs on electric vehicles and their parts to make them cheaper and more accessible to the public.
  4. CREVI: The Comprehensive Roadmap for the Electric Vehicle Industry, which serves as a guide for reaching the targets for the number of EVs and charging stations by 2040.
  5. SIPP: The Strategic Investment Priority Plan of the Board of Investments, which provides incentives to businesses focused on green technology and sustainable practices.