Lithium-Ion Battery Recycling Market

Lithium-Ion Battery Recycling Market

Growth Factors of Lithium Ion Battery Recycling Market

The lithium ion battery recycling market size was valued at USD 3.79 billion in 2023, and the market is now projected to grow from USD 4.50 billion in 2024 to USD 23.21 billion by 2032, exhibiting a CAGR of 22.75% during the forecast period of 2024-2032.

COVID-19 impacted almost all the operations within various fields and disruptions left low revenues and demand. Global lockdowns and social distancing measures extended the halt in activities to affect organisations' financial sustainability. Several industries were greatly affected in terms of operations due to the implemented measures. Policies put in place by governments to fight the virus compounded problems that affected operations, hindering the healing process. This implied that the pandemic that occurred across verticals for the lithium ion battery recycling market growth was felt across the world.

Governments across the world are thus spearheading policies and incentives that would ensure the growth of lithium ion battery recycling market share. They provide for waste disposal and should compel an annual recycling rate from manufacturers that will be supplemented by recyclers, as well as penalties for non-compliance with the set goals. The financial incentives include subsidies, tax credits and low-interest loans which eliminate barriers to investment in recycling technologies among business entities. These measures foster innovation and engagement in recycling programs. The objective is to improve efficiency in recycling batteries so that they become relatively cheaper.

Moreover, consumers around the world are becoming more sensitive about their consumption patterns and sustainability and hence, there is a need for lithium-ion batteries with recycled ingredients. This trend increases pressure on manufacturers to properly recycle products once they become waste, particularly recycled cars mainly in electric vehicles and electronics. The sustainability of the batteries’ acquisition and disassembly is becoming critical for buyers who prefer products from environmentally sensitive companies. Recycling firms cut costs and have an edge over the market. The above transition helps expand the market of lithium ion battery recycling.

Comprehensive Analysis of Lithium Ion Battery Recycling Market

The lithium ion battery recycling market and power & energy industry are rising exponentially due to its market segmentation. This market expansion effectively provides detailed regional assessments considering the dominant supply and demand forces that impact the battery industry. These segmentations are methodically segregated by chemistry, by source and by process. The chemistry includes, Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Manganese Oxide, Lithium Nickel Cobalt Aluminum Oxide and Lithium Nickel Manganese Cobalt Oxide. The source inludes, Electronics, Electric Vehicles, Power Tools and Others. The process includes, Physical/Mechanical, Hydrometallurgical and Pyrometallurgical.

The Asia Pacific battery recycling market is growing due to numerous recyclers, manufacturers and supportive policies. In 2020, GS Engineering & Construction announced a USD 86 million lithium-ion battery recycling facility in South Korea. With a 4.5 kiloton capacity, the facility is backed by local government support. These factors are propelling the market size in the region. Favorable policies and investments continue to boost industry growth.

The leading market players play a crucial role in the power & energy industry assuring industrial prospectus growth and setting market standards. These players include, SNAM (France), Umicore (Belgium), Sumitomo Metal Mining Co., Ltd. (Japan), Lithion Recycling Inc. (Canada), BATREC INDUSTRIE AG (Switzerland), American Zinc Recycling Corp. (U.S.), Fortum (Finland), DOWA ECO-SYSTEM Co., Ltd. (Japan), Li-Cycle Corp. (Canada), Neometals Ltd. (Australia), ACCUREC Recycling GmbH (Germany), AkkuSer (Finland), San Lan Technologies Co., Ltd. (China), Duesenfeld (Germany), Glencore (Switzerland), Redux GmbH (Germany), uRecycle Group (Finland) and Retriev Technologies Inc. (Canada). These market players provide a level-playing competitive landscape.

In April 2023, FCC Ámbito, Glencore, and Iberdrola stated that the three firms will cooperate strategically to recycle lithium-ion batteries in Spain and Portugal. Their objective is to solve one of the industry's key medium to long-term problems by creating a facility for battery recycling.

Segmentation Table

Global Lithium Ion Battery Recycling Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Growth Rate CAGR of 22.75% from 2024 to 2032

Historical Period 2019-2022

Unit Value (USD Billion), Volume (Tonnes)

Segmentation By Chemistry, Source, Process, and Region

By Chemistry

Lithium Cobalt Oxide

• Lithium Iron Phosphate
• Lithium Manganese Oxide
• Lithium Nickel Cobalt Aluminum Oxide
• Lithium Nickel Manganese Cobalt Oxide

By Source

Electronics

• Electric Vehicles
• Power Tools
• Others

By Process

Physical/Mechanical

• Hydrometallurgical
• Pyrometallurgical

By Region

North America (By Chemistry, By Source, By Process and by Country)

• U.S.
• Canada
• Europe (By Chemistry, By Source, By Process and by Country)
• U.K.
• Germany
• France
• Belgium
• Rest of Europe
• Asia Pacific (By Chemistry, By Source, By Process and by Country)
• China
• Japan
• South Korea
• Rest of Asia Pacific

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