Lithium-Ion Battery Recycling Market By Chemical Type (Lithium-Iron Phosphate, Lithium-Manganese Oxide, Lithium-Nickel-Cobalt-Aluminum Oxide, Lithium-Nickel-Cobalt-Aluminum Oxide, and Lithium-Titanate Oxide), Process (Physical,Mechanical, Hydrometallurgical, & Pyrometallurgical), and End-Use (Automotive & Non-Automotive), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2024-2031

Market Perspective

The global Lithium-Ion Battery Recycling Market was worth around USD 8,305.5 million in 2023 and is projected to generate a revenue of USD 31,160.6 million by 2031 at a CAGR of nearly 18.16% between 2024 and 2031.

The global Li-ion battery recycling market is driven by the increasing adoption of clean energy sources such as electric vehicles and energy storage systems. The growing demand for these applications is expected to lead to an increase in the replacement of older, less efficient batteries, thereby boosting the market for lithium-ion battery recycling. Companies such as Total have announced plans to construct battery-based energy storage facilities.

Lithium-ion battery recycling involves collecting used batteries from various sources such as industrial, consumer, and electronic products, as well as automobiles, and recovering metals through recycling methods. The market for lithium-ion battery recycling is influenced by factors such as environmental regulations, government laws, and consumer awareness. However, the market may face challenges such as improper handling and disposal of dangerous elements in batteries, faulty disassembly, and inappropriate shredding.

To overcome these challenges, the industry must focus on developing efficient and safe recycling methods, as well as improving the design of batteries to make them safer and more accessible for consumers. Using protective layers to reduce the risk of fire and short-circuiting can open up growth prospects for the global market. Overall, the lithium-ion battery recycling market is expected to experience robust growth in the near future, driven by the shift towards clean energy and the increasing use of electric vehicles and energy storage systems.

Key Insights

• Based on chemical type, the lithium-manganese oxide segment held the largest market share
• Based on process, the hydrometallurgical segment dominated the market
• Based on end-Use, the non-automotive segment generated the highest revenue
• On the basis of region, North America accounted for the largest market share

Strict Government Policies for Unthreaded Chemical Waste Disposal is a Vital Trend

The shift towards low-carbon generation vehicles in both developing and developed economies is driving the growth of the electric vehicle industry. As the adoption of electric vehicles, including Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, and Hybrid Electric Vehicles, continues to rise, an increasing number of batteries will reach the end of their useful life. This trend is leading to an increase in demand for efficient and cost-effective battery recycling solutions.

For example, in December 2020, the Japanese government announced plans to decarbonize its automobile sector by phasing out the sale of gasoline-only vehicles by 2030. This policy, along with similar initiatives in other countries, is expected to accelerate the adoption of electric vehicles and increase the number of batteries that require recycling.

The recycling of electric vehicle batteries has become increasingly important as a means to sustainably manage end-of-life batteries, conserve resources, and reduce the environmental impact. The recovery of valuable materials such as cobalt, nickel, and lithium from spent batteries can help to offset the costs associated with battery recycling and contribute to the circular economy.

Increasing Demand for Electric Vehicles is Propelling the Market Growth

The global lithium-ion battery recycling market is expected to experience significant growth as organizations and governments increasingly invest in clean power sources and energy storage solutions. The increasing deployment of batteries for energy storage and electric vehicles is anticipated to drive the replacement of older, less efficient batteries with newer, more efficient options, leading to a rise in the need for recycling.

An example of this trend can be seen in the partnership between Indian battery start-up Lohum and Mercedes-Benz Energy. Lohum has announced that it will partner with Mercedes-Benz Energy to recycle electric vehicle batteries. Mercedes-Benz Energy will supply Lohum with a minimum of 50 MWh of second-use battery modules annually, and Lohum will be the first partner in Asia to reuse and recycle these modules for Mercedes-Benz Energy. This partnership is indicative of the growing demand for efficient and cost-effective battery recycling solutions in the industry.

However, recycling of lithium-ion batteries is a complex process and poses challenges such as the complexity of battery chemistries, lack of standardization, and high costs associated with recycling technologies. Therefore, it is important for the industry to focus on developing efficient, cost-effective, and standardized recycling methods, as well as establishing regulations for the recycling of lithium-ion batteries.

Recent Development

In September 2021: The north American market leader in lithium-ion battery recycling, Li-Cycle Holdings Corp, recently announced plans to construct a new commercial lithium-ion battery recycling facility near Tuscaloosa, Alabama.

In August 2021: Britishvolt, a pioneer in electric vehicle battery technology and manufacturing in the United Kingdom, and Glencore formed a long-term strategic alliance. This partnership strengthens Glencore's position in the lithium-ion battery recycling market by expanding its product offering.

Segmentation Analysis

Based on chemical type, the market is categorized into Lithium-Iron Phosphate, Lithium- The lithium-ion battery market is segmented based on chemical type, including Lithium-Iron Phosphate, Lithium-Manganese Oxide, Lithium-Nickel-Cobalt-Aluminum Oxide, Lithium-Nickel-Manganese-Cobalt, and Lithium-Titanate Oxide. Among these, lithium-manganese oxide batteries are in high demand due to their dependability, long-lasting high life span, and high temperature-handling capacity.

These batteries are commonly used in applications such as electricity, security devices, fire & smoke alarms, gas & water meters, and other energy storage systems. In addition, they are considered safer than other lithium-ion batteries due to their great temperature stability, making them ideal for use in medical equipment and electric motorcycles, power tools, and laptops.

The market is also segmented based on the extraction process, including Physical/Mechanical, Hydrometallurgical, and Pyrometallurgical. The hydrometallurgical process is projected to have a significant share of the market due to its eco-friendly operations, less complicated method, and low water and gas emissions. Meanwhile, the Pyrometallurgical segment is expected to experience substantial expansion due to its cost-effective extraction procedures and ability to treat a wide variety of battery chemistries.

By end-use, the market is divided into automotive and non-automotive segments. The non-automotive segment dominates the market share, driven by the rise in demand for the second-life application of lithium-ion batteries in consumer electronics devices such as laptops, digital cameras, and smartphones. The non-automotive industry is also undergoing a period of rapid transformation, with connectivity, digitalization, and electrification opening doors to tech giants and other non-automotive players seeking to revolutionize the industry.

North America is Dominating the Market Share Due to High Level of Investment

The United States is a significant player in the recycling market for lithium-ion batteries in North America. The growing adoption of electric vehicles in the region and supportive government regulations regarding the recycling of lithium-ion batteries are expected to drive market growth during the forecast period. The market is further propelled by the rising investment by key players in the electric vehicle industry and the expanding infrastructure related to electric vehicles.

Furthermore, the increasing awareness about the environmental impact of improper disposal of used batteries and the growing demand for sustainable and green energy solutions are also contributing to the growth of the lithium-ion battery recycling market in the United States. Additionally, the rising adoption of lithium-ion batteries in various industries such as consumer electronics, grid storage, and renewable energy is also expected to drive the demand for recycling services in the country.

Therefore, the lithium-ion battery recycling market in the United States is projected to experience significant growth in the coming years, driven by the increasing adoption of electric vehicles and supportive government regulations.

Europe is the Fastest Growing Market as the Region Tighten Norms to Reduce Carbon Footprint

Europe's lithium-ion battery recycling market is also anticipated to expand significantly over the forecast period. Numerous businesses in the region actively participate in the industry by utilizing a combination of battery chemistry-specific treatment technologies. In addition, European countries benefit from the European Union's ambitious renewable energy generation goals, which aim to reduce the carbon footprint of all economic sectors.

For instance, in December 2020, the European Commission revealed its proposals to enhance the recycling and collecting targets for batteries set by industry players. Apex Organization is anticipated to enhance the collecting and recycling goal for portable batteries from 45% to 65% by 2025 in order to ensure excellent recovery rates across its membership.

For instance, Accurec has finished the renovation of its Krefeld facility, which now offers double the storage capacity and security for lithium batteries. This development highlights the company's expansion in the lithium-ion battery recycling market by contributing to an increase in production.

Competitive Landscape

• ACCUREC-Recycling GmbH
• American Zinc Products
• BATREC
• Cirba Solutions
• Glencore
• Snam SPA
• Umicore
• Sumitomo Metal Mining Co., Ltd.
• Lithion Recycling
• Redux GmbH

The global lithium-ion battery recycling market is segmented as follows:

By Chemical Type

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

By Process

• Physical/ Mechanical
• Hydrometallurgical
• Pyrometallurgical

By End-Use

• Automotive
• Non-Automotive

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
• Nordic countries
  • • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
• Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America