Battery Recycling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Battery Recycling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Battery Recycling Market size is expected to grow from USD 18.58 billion in 2023 to USD 31.41 billion by 2028, registering a CAGR of 11.07% during the forecast period (2023-2028).

Key Highlights

• Over the medium term, factors such as declining prices of lithium-ion batteries and growing concern for battery waste disposal are likely to drive the battery recycling market in the forecast period.
• On the other hand, the high cost of recycling operations in many countries is expected to hinder market growth in the coming years.
• Nevertheless, technological innovations in battery recycling strategies create tremendous opportunities for market development. For instance, researchers at the University of Leicester, United Kingdom, have introduced a new method of recycling electric vehicle batteries with the help of ultrasonic waves. The method will solve the issue of high energy consumption in the case of traditional energy-intensive chemical processes.
• Europe is the fastest-growing market during the forecast period due to the number of he rising battery applications. This growth is due to the growing battery usage in electric vehicles (EVs).

Battery Recycling Market Trends

Lithium-ion Battery Expected to Witness Significant Growth

• Lithium-ion battery technology has recently been popular, particularly in the automotive (EVs) and renewable power industries. The plummeted prices and favorable chemistry steered the technology demand. The lifetime of a lithium battery is approximately three to four years, after which the battery users can provide it for recycling and get a new one in place of it.
• According to the new edition of the IEA's annual Global Electric Vehicle Outlook, more than 10 million electric cars (BEV and PHEV) sold worldwide in 2022, and sales are expected to grow by another 35% this year to reach 14 million. This major growth means electric cars' share of the overall car market has risen from around 4% in 2020 to 14% in 2022 and is set to increase further to 18% this year, based on the latest IEA projections. Such growth is likely to give an impetus to the battery recycling market in the near future through used-up Li-ion batteries.
• In June 2023, the U.S. Department of Energy's Advanced Materials and Manufacturing Technologie (AMMTO) announced USD 2 million for the rejuvenation, recycling, and reuse of Lithium-ion battery programs administered through the ReCell Center located at Argonne National Laboratory (ANL).
• In March 2023, Li-Cycle Holdings Group signed an agreement for a global lithium-ion battery recycling partnership with the KION Group; the Company announced plans to develop a new lithium-ion battery recycling facility in France, underpinned by regional commercial demand, including KION's lithium-ion battery recycling needs.
• Such developments are expected to boost the battery recycling market at the global level.

Europe Expected to Witness Faster Growth

• The battery recycling industry has recently witnessed continuous growth in the European region due to the blooming start-ups in the battery recycling field. The other big drivers for battery recycling are the growing electric vehicles market and energy storage projects in the region.
• According to ACEA (European Automobile Manufacturers' Association), Battery electric vehicles (BEVs) broke records in 2022, taking 12.1 percent of the total market share, compared to 9.1 percent in 2021, or 1.9 percent in 2019. Such growth in the market share is likely to boost the battery recycling market in the near future in Europe.
• In May 2023, Li-cycle Holdings Group and Glencore International signed a Letter of Intent to jointly study the feasibility of and, later, develop a Hub facility in Portovesme, Italy which will produce critical battery materials, including nickel, cobalt, and lithium from recycled battery content.
• In April 2023, Fortum Battery Recycling started commercial operations at its state-of-the-art hydrometallurgical battery material recycling facility in Harjavalta, Finland. The newly established facility is the largest recycling plant in Europe in terms of recycling capacity, and it is also the first commercial-scale facility in Europe for hydrometallurgical recycling.
• Owing to such developments, Europe is expected to witness significant growth in the coming years.

Battery Recycling Industry Overview

The battery recycling market is moderately fragmented. Some of the key players in this market include Accurec Recycling GmbH, Glencore PLC, Princeton NuEnergy Inc., Li-Cycle Holdings Corp. and Recyclico Battery Materials Inc.

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