Battery Recycling Market By Chemistry (Lithium-ion, Lead Acid, Nickel and Others), Application (Transportation, Consumer Electronics & Industrial), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032
The global Battery Recycling Market size was worth around USD 11.6 billion in 2022 and is predicted to reach a valuation of USD 23.07 billion by 2032 at a CAGR of around 7.94% between 2023 and 2032.
The battery recycling market has experienced growth in recent years due to rising environmental concerns surrounding the improper disposal of batteries, which can lead to the contamination of water and land. Governments in major economic countries, such as the U.S., China, Canada, Germany, and India, have implemented strict regulations on the recycling and re-supply of used batteries. Recycling batteries not only recover valuable raw materials but also helps to manage waste efficiently.
The growing demand for batteries in electric vehicles, devices, and appliances has further driven the need to recycle currently disposed batteries. Lead-acid batteries, in particular, are highly valuable to recycle due to their recyclability ratio of over 96% and cost-effectiveness. In addition to commercial value, battery recycling also helps to conserve the environment by indirectly reducing carbon emissions. The growth of the battery recycling market is closely tied to the demand for electronic products and services.
- Based on chemistry, the lead acid segment held the largest market share
- Based on application, the transportation segment dominated the market
- On the basis of region, Asia Pacific accounted for the largest market share
Growing Concerns About Negative Impact of Improper Battery Disposal to Drive Market Growth
The demand for EVs has grown significantly in recent years owing to increasing concerns over environmental issues such as high levels of carbon emissions amongst others. This in turn has increased the demand for the production of batteries with better capacities and longer life spans. However, materials involved in manufacturing a battery such as mercury, lead-acid, cadmium, and lithium-ion amongst others are limited by their availability.
Inappropriate disposal of any kind of battery has far more impact on the environment due to its properties being hazardous in nature. It has resulted in the necessity for recycling batteries. Lead-acid batteries can almost be recycled fully. Commercial benefits from the materials used in a battery are high due to their limited availability which in turn has resulted in growth for the battery recycling market.
High Capital Requirement for Establishment of Recycling Plant to Challenge Market Growth
The recycling of batteries other than lead-acid batteries is a complex process that requires specialized equipment and technology. The materials used in the production of these batteries are highly hazardous to the environment, making proper disposal and recycling crucial. The high capital investments required to set up battery recycling units make it a challenging market for new entrants. Despite the presence of existing recycling units and companies working towards reusing batteries, the market remains limited for new firms providing these services. The lack of advancements in technology is a significant barrier for new entrants, posing a challenge to the battery recycling market growth in 2022.
In December 2022: Equity investments were made by LG Chem in a battery recycling company named Jae Young Tech. The motive of the investment was to expedite LG Chem’s entry into the North American region. The investment was worth USD 18.6 million.
In December 2022: Glencore Plc and ACE Green Recycling stated that the two companies will enter into a long-term agreement for recycling batteries and supplying the metals from lithium-ion batteries.
In March 2022: Princeton NuEnergy Inc. and Greenland Technologies Holding Corporation entered into a strategic partnership for developing sustainable and innovative solutions for the second-life battery.
Based on chemistry, lead-acid batteries dominate the market by holding more than 92% of the revenue share. The exceptional recyclability of lead-acid batteries, with more than 95% of lead being able to be processed for recycling, has resulted in the highest revenues among batteries with other chemicals such as lithium-ion and nickel. It is expected that lead-acid batteries will continue to dominate the battery recycling market share throughout the forecast period. The recycling process of lead-acid batteries is simpler and more cost-effective than that of lithium-ion and nickel-based batteries.
In terms of application, the transportation segment dominated the market with more than 60% of batteries being extensively used in the automobile or transportation industry due to their ability to provide high power. The increasing sale of electric vehicles (EVs), driven by expansion in infrastructure, technological advancements, and promotion of EVs over conventional automobiles, has led to a rise in demand for recycling used batteries. This is because the resources required in a battery are naturally limited.
Asia Pacific Dominated the Market Owing to Growing Government Support
The Asia Pacific region dominated the battery recycling market due to numerous measures taken by countries like China, Japan, and India to increase the use of electric vehicles (EVs). The push to lower carbon emissions has led to growth in the EV and renewable energy markets, resulting in increased demand for storing generated electricity in various types of batteries, and therefore, a need for recycling used batteries. Asia Pacific also dominated the market in terms of revenue.
In 2021, more than 3.8 million EVs were sold in the region, and China was the largest battery recycling country in the Asia Pacific, as well as globally. China has a battery recycling capacity of more than 200,000 metric tons, accounting for over 70% of Asia Pacific's recycling capacity. The dominant factors in the region's leadership of the battery recycling market are its growing population and rising demand for EVs and electricity storage.
North America is the Fastest Growing Battery Recycling Market Owing to Rising Investments in Establishing New Plants
North America is expected to show strong growth in the battery recycling market during the forecast period due to increasing investments in this industry. In 2021, the government of the United States announced significant investments in infrastructure and technology to support battery recycling, driven by the growing demand for electric vehicles and the increase in electricity generated from various sources. It is projected that the demand for lithium, graphite and other materials used in batteries will increase by over 1000% in the forecast period.
In 2021, North America recycled over 95% of lead-acid batteries and only about 5% of lithium-ion batteries. However, the region has taken significant steps to improve its capacity for recycling lithium-ion batteries through government-led initiatives. North America recycled over 20,500 tons of batteries in 2021.
- Ascend Elements, Inc.
- Call2Recycle, Inc.
- Lithion Recycling
- Li-Cycle Corp.
- DUESENFELD GMBH
- Battery Recyclers of America
- EXIDE INDUSTRIES LTD.
The global battery recycling market is segmented as follows:
- Lead Acid
- Consumer Electronics
- North America
- The U.S.
- The UK
- Nordic countries
- Benelux Reunion
- The Netherlands
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
ARE YOU SEEKING COMPREHENSIVE INSIGHT ON VARIOUS MARKETS? Speak to an Expert
CONTACT OUR EXPERTS TODAY
Air Electrode Battery Market By Product (Zinc-Air Batteries, and Lithium-Air Batteries) Type (Primar
Battery Recycling Market By Chemistry (Lithium-ion, Lead Acid, Nickel and Others), Application (Tran
Biodiesel Market By Feedstock (Soybean, Rapeseed, Palm, Palm, Poultry, Tallow, White Grease, and Oth
Biomass Boiler Market Size, Share, and COVID-19 Impact Analysis, By Feedstock (Woody biomass, Forest
Biomethane Market by Application (Automotive, Power Generation, and Others), Production Method (Ferm
Carbon Capture and Storage (CCS) Market Size, Share, and COVID-19 Impact Analysis, By Capture Source