Battery Recycling Market - Global Outlook & Forecast 2025-2030

The global battery recycling market is expected to grow at a CAGR of 10.61% from 2024 to 2030.

BATTERY RECYCLING MARKET TRENDS & DRIVERS

Mergers & Acquisitions in the Battery Recycling Market

The global push for sustainability and the rapid electrification of transportation have driven a surge in the battery recycling market. As industries work toward a circular economy, companies in the sector are actively pursuing mergers and acquisitions (M&A) to strengthen their technological capabilities, expand market reach, and secure access to critical raw materials like lithium, cobalt, and nickel. In December 2024, Ace Green Recycling, one of the leaders in sustainable battery recycling technology, announced a merger with Athena Technology Acquisition Corp. II, a special-purpose acquisition company. This deal, valuing Ace at $250 million, is expected to close in the first half of 2025. The merger aims to accelerate Ace's expansion plans, including the development of a flagship battery recycling plant in Texas.

Creation of Stable Supply Chains

The increasing demand for EVs has pushed Original Equipment Manufacturers (OEMs) to create their supply chain strategies, particularly regarding the sourcing of critical minerals used in EV batteries. To ensure long-term stability and reduce reliance on volatile global markets, automotive OEMs are now forging partnerships with local recyclers. These collaborations aim to establish closed-loop supply chains where end-of-life batteries are collected, processed, and reintegrated into the production cycle. By working directly with recyclers, OEMs can secure a steady stream of essential materials such as lithium, nickel, and cobalt, which are critical for battery production. This approach mitigates risks associated with geopolitical instability, fluctuating raw material prices, and supply shortages and further strengthens the battery recycling market growth. For instance, in February 2024, Volkswagen Group UK expanded its partnership with Ecobat to recycle EV batteries, supporting a circular energy economy. Ecobat, which has worked with VWG UK since 2014, will collect and process high-voltage batteries at its new UK lithium-ion recycling center, its third globally after Germany and Arizona. Volkswagen plans to invest €180 billion ($195.57 billion) in electrification by 2027, aiming for 50 fully electric models by 2030.

INDUSTRY RESTRAINTS

High Costs of Recycling

Battery recycling is essential for reducing environmental pollution, conserving valuable materials, and ensuring a sustainable energy future. However, the process comes with significant financial challenges that make it less economically viable compared to producing new batteries, thereby hampering the battery recycling market growth. The costs associated with battery recycling stem from several factors, including complex collection systems, expensive processing methods, regulatory compliance, and the evolving nature of battery technology. These factors create barriers for companies and governments trying to establish large-scale recycling programs.

For instance, the cost of setting up a lithium-ion battery recycling plant in India ranges from $90,000 to $370,000, depending on factors such as machine cost, plant area, raw materials, and other operational expenses. The price of a lithium-ion battery recycling machine varies based on its processing capacity and configuration, ranging from $70,000 to $350,000. The required plant area depends on machine size and storage needs, with a 500kg/h machine requiring approximately 15m × 6.5m × 6m, while costs fluctuate based on local rent. India has an abundant supply of waste lithium-ion batteries, which helps reduce raw material costs, though market fluctuations should be monitored. Additional expenses such as transportation, labor, and electricity also contribute to the overall investment needed for setting up the plant.

BATTERY RECYCLING MARKET SEGMENTATION INSIGHTS

INSIGHTS BY TYPE

The global battery recycling market by type is segmented into lead-acid batteries and lithium-ion batteries. In 2024, the lead acid battery recycling segment accounted for the largest global market share. The lead-acid battery segment has one of the highest recycling rates, driven by its extensive use in automotive applications, industrial equipment, and backup power systems. The primary factor influencing the demand for lead-acid battery recycling is the well-established infrastructure for reclaiming lead, which is highly cost-effective and environmentally necessary.

The lithium-ion battery segment exhibited the highest CAGR of more than 11% during the forecasted period in the global battery recycling market. The growing demand for lithium-ion battery recycling is primarily driven by the rapid expansion of the EV industry, consumer electronics, and renewable energy storage systems. With the global push toward sustainability and net-zero carbon emissions, governments and corporations are increasingly investing in Li-ion battery technology. However, the finite supply of critical raw materials such as lithium, cobalt, and nickel has necessitated the development of efficient recycling methods to reduce dependency on virgin resources. Additionally, stringent environmental regulations regarding hazardous waste disposal encourage the proper collection and recycling of Li-ion batteries. The presence of toxic and flammable components also increases the necessity for safe end-of-life battery management. Furthermore, advancements in hydrometallurgical and direct recycling technologies have made Li-ion battery recycling more economically viable, further fueling the demand for efficient recycling solutions.

INSIGHTS BY SOURCE

The global battery recycling market by source is segmented into automotive, industrial, and consumer electronics. In 2024, the automotive segment accounted for the highest share of the global market. The automotive industry is one of the primary drivers of battery recycling demand, particularly due to the rapid adoption of EVs. As governments worldwide enforce stricter emissions regulations and incentivize EV adoption, the production of lithium-ion batteries has surged. However, the finite supply of critical raw materials such as lithium, cobalt, and nickel presents sustainability challenges, making recycling an essential component of the EV ecosystem. Recycling allows manufacturers to recover valuable metals, reducing dependency on mining and minimizing environmental impact. Additionally, the increasing number of end-of-life EV batteries necessitates efficient recycling processes to prevent hazardous waste accumulation. Many automakers are now integrating closed-loop recycling strategies to reclaim materials and reintegrate them into new battery production, driving the development of advanced battery recycling technologies and supporting the battery recycling market growth.

Market Segmentation by Source

• Automotive
• Consumer Electronic
• Industrial

INSIGHTS BY PROCESS

The global battery recycling market by process is segmented into hydrometallurgy, pyrometallurgical, mechanical, and direct recycling. In 2024, the hydrometallurgical process accounted for the highest share in the battery recycling market. Hydrometallurgical processes play a crucial role in battery recycling due to their efficiency in extracting valuable metals such as lithium, cobalt, and nickel. The increasing demand for EVs, renewable energy storage, and portable electronics is driving the need for effective recycling solutions. Governments worldwide are enforcing strict environmental regulations to reduce hazardous waste and encourage sustainable resource recovery, making hydrometallurgy a preferred method due to its lower emissions compared to pyrometallurgical processes.

Furthermore, the pyrometallurgical process is exhibiting the highest CAGR of 10.71% during the forecasted period in the global battery recycling market. The pyrometallurgical process is another key driver of battery recycling, particularly for its ability to recover high-value metals from spent batteries efficiently. As global demand for lithium-ion batteries surges, industries are investing in high-temperature smelting and refining processes to extract critical materials, reducing dependence on virgin raw materials. Stringent environmental policies in Europe, the U.S., and China are pushing companies to develop cleaner pyrometallurgical solutions with lower carbon emissions.

Market Segmentation by Process

• Hydrometallurgy
• Pyrometallurgical
• Mechanical
• Direct Recycling

BATTERY RECYCLING MARKET GEOGRAPHICAL ANALYSIS

APAC dominated the global battery recycling market share, accounting for over 57% of global revenue in 2024. APAC, dominated by China, Japan, and South Korea, remains the largest battery production hub and is rapidly expanding its recycling capacity. China, in particular, enforces strict recycling mandates and supports industry growth through subsidies and technology incentives. Government policies, such as China's New Energy Vehicle (NEV) regulations, require battery manufacturers to be responsible for recycling, further supporting battery recycling market growth. Australia is emerging as a key player in Lithium-ion battery recycling due to its vast mineral resources and growing EV adoption, with a focus on refining recovered materials for battery-grade reuse. In India, the Battery Waste Management Rules 2022 require producers to ensure responsible recycling and reuse. Also, companies like POSCO, Hyundai, and Panasonic are integrating battery recycling into their supply chains to meet ESG goals.

In North America, stringent environmental regulations, coupled with government incentives and corporate sustainability goals, are accelerating the growth of lithium-ion battery recycling, in the US and Canada. Companies are investing in advanced hydrometallurgical and direct recycling technologies to improve material recovery efficiency. Furthermore, Europe leads in policy-driven initiatives, with the EU Battery Regulation mandating higher recycling rates and the use of recycled materials in new batteries supporting the battery recycling market growth. Strong investments in gigafactories and a circular economy approach further enhance the region’s competitive advantage. Meanwhile, Latin America, and the Middle East & Africa, though still in the early stages, hold potential due to their rich raw material reserves, and investment in local recycling infrastructure could enhance supply chain security for global battery markets.

• Battery Recycling Market in APAC
• China
• South Korea
• Japan
• Australia
• India
• Singapore
• Battery Recycling Market in Europe
• Germany
• The U.K.
• France
• Spain
• Italy
• Belgium
• Finland
• Sweden
• Norway
• Battery Recycling Market in North America
• The U.S.
• Canada
• Battery Recycling Market in Latin America
• Colombia
• Costa Rica
• Battery Recycling Market in the Middle East & Africa
• UAE
• Saudi Arabia
• South Africa

BATTERY RECYCLING MARKET VENDOR INSIGHTS

The global battery recycling market is consolidated, and dominated by a few key players that control a significant share of the industry. Major companies such as Umicore, Li-Cycle, Glencore, Redwood Materials, Stena Metall AB, and LG Energy Solutions dominate the global battery recycling market, leveraging their advanced recycling technologies and global networks. These companies have established partnerships with EV manufacturers, consumer electronics firms, and industrial battery suppliers to secure a steady stream of used batteries. Their expertise in recovering valuable metals such as lithium, cobalt, and nickel enables them to maintain cost efficiency while meeting the growing demand for raw materials in battery production. Additionally, some companies vertically integrate their operations, covering everything from battery collection to material refining, giving them a competitive edge in pricing and supply reliability.

Global Battery Recycling Market Latest News & Product Launches

• In February 2024, Dubatt inaugurated the UAE’s first integrated battery recycling plant in Dubai Industrial City with an AED 216 million (USD 58.81 million) investment. The facility can recycle up to 75,000 metric tons of lead-acid batteries annually, supporting sustainability and local manufacturing.
• In March 2024, Regenerate Technology Global, one of the leaders in advanced battery recycling, acquired Infinion SARL, a Luxembourg-based company operating two Swedish battery service firms. Infinion operates a 204,000 sq. ft. facility in Kolbäck, Sweden, specializing in battery recycling, car dismantling, and waste management.
• In October 2024, Hydrovolt launched the world's most automated battery recycling line in Fredrikstad, enhancing efficiency and safety in EV and industrial battery recycling. The facility recovers 1 GWh of residual energy annually, supporting its operations and the power grid.

Key Company Profiles

• Call2Recycle, Inc.
• Glencore
• LG Energy Solution
• Li-Cycle Corp
• Redwood Materials Inc
• Stena Metall AB
• Umicore

Other Prominent Vendors

• ACCUREC
• ACCUREC-Recycling GmbH
• Ace Green Recycling, Inc.
• Altilium
• American Battery Technology Company
• Aqua Metals, Inc
• Ascend Elements, Inc.
• Attero
• BASF
• BatX Energies
• Bluewater Battery Logistics
• Collect and Recycle
• Contemporary Amperex Technology Co., Limited
• Dubatt Battery Recycling LLC
• East Penn Manufacturing Company
• ECOBAT
• Element Resources DE LLC
• EXIDE INDUSTRIES LTD
• FIRST BATTERY
• Fortum
• Ganfeng Lithium Group Co., Ltd
• GlobalTech Environmental
• Gopher Resource
• Hydrovolt
• Livium
• Neometals Ltd
• Nickelhütte Aue GmbH
• RecycLiCo Battery Materials Inc
• Regenerate Technology Global, Inc.
• SK tes
• SungEel Hitech
• Sunlight Recycling
• Veolia

KEY QUESTIONS ANSWERED:

1. What is the growth rate of the global battery recycling market?

2. How big is the global battery recycling market?

3. Which region dominates the global battery recycling market share?

4. Who are the key players in the global battery recycling market?

5. What are the significant trends in the battery recycling market?