Battery Recycling Market

The global Battery Recycling Market is valued at USD 26.93 Billion in 2024 and is projected to reach a value of USD 73.3 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 9.55% between 2025 and 2035.

Premium Insights

A pivotal driver for the battery recycling market is the global surge in the adoption of

electric vehicles

(BEV and PHEV). According to the IEAs Global Electric Vehicle Outlook, an extra 10 million electric motors will be sold globally in 2024, and a 35% increase in sales is predicted to accomplish 14 million. This surge has expanded the market share of electric motors from approximately 4% in 2020 to 14% in 2024, with expectancies to further growth to 18% this year. This significant expansion is set to drive the battery recycling market forward, driven by the increasing availability of used-up Li-ion batteries.

• In June 2024, the U.S. Department of Energys Advanced Materials and Manufacturing Technologies (AMMTO) allotted USD 2 million for Lithium-ion battery rejuvenation, recycling, and reuse programs coordinated through the ReCell Center at Argonne National Laboratory (ANL).
• In 2024, the Asia Pacific region held a whopping 42.1% revenue share, dominating the market.
• Europe is expected to grow at the fastest rate during the forecast period.
• The Pyrometallurgical Process accounted for the most considerable market growth in 2024.
• The Extraction of Material segment revealed the most significant market growth in 2024.
• The Metals segment accounted for the most significant revenue for the Battery Recycling Market in 2024.
• The Automotive batteries segment led the Battery Recycling Market in 2024.
• The Lead Acid Batteries segment mentioned the substantial market growth in 2024.

Economic Insights

The cost of recycling batteries is comparable to

lead-acid

batteries, mainly because similar equipment and operational expenses are involved, averaging between $100 to $200 per metric ton of black mass paste. The black mass, making up around 60% of the incoming battery weight and comprising nickel, manganese, and cobalt oxides with carbon, incurs a cost of about $90 per metric ton for converting incoming batteries. Within this 60%, half is carbon, while the other half includes spent or unspent metal oxides, cobalt, nickel, manganese, and miscellaneous plastic and metal components. The cobalt content material varies from 5% to ten%, depending on the producer. One significant economic consideration is that the black mass that is exchanged on the open market is worth about $300 per metric ton of the arriving battery unit, or $500 per metric ton of the actual black mass.

Top Market Trends

• Lithium-ion battery

  demand is rising as electric cars and energy storage technologies gain traction. This surge in demand plays a crucial role in expanding the battery recycling market.
• There is a noticeable shift toward establishing a circular economy for batteries. The aim is to prioritize reusing and repurposing end-of-life batteries, extracting maximum value from materials while minimizing waste.
• Ongoing progress in battery recycling technologies is making significant strides in recovering and reusing valuable materials from lithium-ion batteries. These technological advancements are vital contributors to the overall growth of the market.
• Reuse and repackaging have become a priority in the battery operations due to strong environmental restrictions and the growing understanding of the negative environmental effects of battery disposal.
• The battery recycling market is marked by intense competition and consolidation, with a significant presence of well-established players. Noteworthy trends among these companies include collaborations, mergers & acquisitions, and expansions, creating a dynamic and competitive landscape within the industry.

Market Segmentation

The Global Battery Recycling Market is segregated into the segments as mentioned below:

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Based on the Recycling Process

The Detachable holds the Largest Share and Expected to Continue the Growth Trajectory

Pyrometallurgical Processes hold the majority of the market share in 2024. Using pyrometallurgical recycling presents a significant driver for the battery recycling market. This method can utilize black mass as a feedstock but, unlike hydrometallurgical processing, is not strictly dependent on it. In this approach, batteries undergo direct smelting in a furnace, leading to cobalt, nickel, and copper recovery in an alloy. At the same time, other components, such as lithium, aluminum, and silicon, predominantly end up as slag. The resulting alloy then undergoes a comparatively more straightforward hydrometallurgical refining process, extracting the raw materials and producing battery metal salts ready for battery-precursor production.

Based on the Processing State

Extraction of Material Dominates the Market and Forecast to Continue the Trend

In 2024, the significant expansion of the extraction of material segment can be attributed to the rising demand for sustainable solutions, increasingly stringent environmental regulations, and advancements in recycling technologies. The elevated use of electrical motors and power storage systems has led to an extra demand for lithium-ion batteries, riding the expansion of the battery recycling market. The industrys response to stringent regulations and a heightened awareness of the environmental impact of battery disposal is evident in adopting practices that focus on reuse and repackaging.

Based on Material

The Metals segment Led the Market and Estimated to Continue to Grow

In 2024, the metals segment emerged as a key driver for potential market growth. Lithium, cobalt, and nickel, valuable metals with limited Earth supply, are crucial components. Recovering these metals from spent batteries presents a sustainable and cost-effective solution, particularly as the demand for these metals surges in the electric vehicle and renewable energy sectors. Beyond their applications in batteries, these metals play essential roles in diverse industries, from electronics and aerospace to medical technology. The recovery process addresses the demand for these metals and establishes a secondary supply chain, reducing dependence on virgin ore mining and mitigating its environmental impact.

Based on Source

Automotive Batteries mentioned a Maximum market growth and Forecasted to Continue the Trend

In 2024, the automotive batteries segment witnessed substantial growth, primarily propelled by the escalating quantity of used batteries requiring proper disposal and recycling. The global automotive battery recycling market is being significantly influenced by the imperative of establishing a sustainable infrastructure for managing and recycling end-of-life batteries. This demand is notably driven by the increasing adoption of electric vehicles (EVs) and the utilization of commercial EVs. The robust growth in both passenger and commercial EVs is a key factor fuelling the expansion of the automotive battery recycling market. Recognizing the essential role of the battery recycling enterprise turns into important in curbing the inflow of batteries into landfills, which raises environmental issues due to the existence of dangerous materials which include lead, mercury, and others.

Based on Chemistry

The Lead Acid Batteries segment led the market and Expected to Continue the Dominance

The lead-acid batteries segment took the lead in the battery recycling market in 2024, driven by their expanding use in automotive, industrial, and backup power applications. The surge in demand for battery recycling is attributed to the extensive use of lead-acid batteries. Governments worldwide are implementing regulations promoting battery recycling to minimize environmental impact and foster industry growth. The increasing popularity of electric vehicles and renewable energy storage systems further amplifies the demand for batteries, escalating the need for recycling. Recycling lead-acid batteries presents several advantages, including resource conservation, waste reduction, and recovering valuable materials.

Based on Region

Europe is predicted to have the Fastest Market Growth in the Projected Period

In Europe, the battery recycling industry is on a growth trajectory, fueled by the emergence of innovative startups dedicated to recycling initiatives and a surge in electric vehicles (EVs) and energy storage projects. According to the ACEA, Battery Electric Vehicles (BEVs) achieved a record-breaking market share of 12.1% in 2022, a significant increase from 9.1% in 2021 and 1.9% in 2019. This notable expansion in BEV adoption is anticipated to be an essential catalyst for the battery recycling market in the region. In May 2023, Li-cycle Holdings Group and Glencore International collaborated on a Letter of Intent to explore and develop a Hub facility in Portovesme, Italy. This facility aims to produce critical battery materials, such as nickel, cobalt, and lithium, extracted from recycled battery content. The strategic collaboration underlines Europes pivotal role in steering the growth of the battery recycling market.

Competitive Landscape

The battery recycling market is experiencing significant growth, propelled by increasing environmental concerns, strict regulations, and the growing adoption of electric vehicles and portable electronics. Notably, companies like Glencore, Umicore, Johnson Controls, and Retriev Technologies are making substantial investments in constructing recycling infrastructure and developing advanced technologies to process diverse battery types efficiently. Meanwhile, startups such as Redwood Materials, American Manganese, and Li-Cycle are introducing cutting-edge technologies focused on specific materials like lithium, cobalt, and nickel, disrupting the market with their innovations. Furthermore, cross-value chain partnerships involving collaboration between recyclers, miners, battery manufacturers, and automakers are establishing closed-loop systems for battery materials. This collaborative approach aims to enhance resource security and promote sustainability in the industry.

The players in the global Battery Recycling market include Call2Recycle (U.S.) among others.

Recent Market Developments

• June 2023: The Department of Energy (DOE) in the United States has unveiled over USD 192 million in fresh funding dedicated to recycling batteries from consumer products. This initiative includes the initiation of an advanced battery research and development (R&D) consortium, along with the ongoing support for the Lithium-Ion Battery Recycling Prize, originally launched in 2019.
• May 2023: Fortum Battery Recycling Oy and AMG Lithium GmbH have preliminarily agreed and signed a memorandum of understanding concerning the recycling of lithium salts and their subsequent refinement into battery-grade lithium hydroxide. AMG Lithium GmbH is presently in the process of building a lithium hydroxide production facility in Bitterfeld, Germany.
• May 2023: Li-Cycle Holdings Group and Glencore International have entered into a Letter of Intent to collaboratively explore the feasibility and subsequently establish a Hub facility in Portovesme, Italy. This facility aims to manufacture essential battery materials such as nickel, cobalt, and lithium derived from recycled battery content.
• April 2023: Fortum Battery Recycling has commenced its commercial operations at a cutting-edge hydrometallurgical battery material recycling facility located in Harjavalta, Finland. This newly inaugurated facility stands as the largest recycling plant in Europe in terms of capacity and represents the first commercial-scale venture for hydrometallurgical recycling in the region.
• April 2023: Ascend Elements has officially opened its newly established recycling plant in Covington, Georgia. The facility is now operational, processing used lithium-ion batteries and manufacturing scrap to create valuable materials that contribute to the advancement of clean energy initiatives.

Segmentation of the Global Battery Recycling Market