Electric vehicle battery recycling involves collection, dismantling and material recovery process of discarded or decommissioned electric vehicle batteries. It helps recover metals like lithium, cobalt and nickel which are critical for manufacturing of new batteries. Recycling reduces the burden on mining activities and ensures sustainable supply of raw materials.
Market key trends:
One of the key trends in the electric vehicle battery recycling market is the increasing focus on lithium-ion battery recycling due to concerns around shortage of critical raw materials. Lithium-ion batteries power the majority of electric vehicles globally. However, extracting materials like lithium, cobalt and nickel through mining is costly and damaging to the environment. Battery recycling helps access these materials in an eco-friendly and cost-effective manner. As electric vehicle sales continue to rise rapidly, lithium-ion battery recycling will play a vital role in maintaining supply security of battery materials and making electric mobility more sustainable.
The global Electric Vehicle Battery Recycling Market Demand is estimated to be valued at US$ 2.4 Bn in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The electric vehicle battery recycling market is segmented into lithium-ion battery, nickel-metal hydride battery, lead acid battery and others. Lithium-ion battery segment dominated the market in 2022 and is expected to remain the dominating segment over the forecast period. Lithium-ion batteries have high energy density and performance, making them the preferred choice for electric vehicles. Increasing adoption of EVs has led to rising lithium-ion battery waste. Thus lithium-ion battery recycling segment will witness high growth rate.
The global electric vehicle battery recycling market is expected to witness high growth, exhibiting a CAGR of 28% over the forecast period, due to increasing concerns regarding e-waste and limited availability of battery materials.
Asia Pacific dominated the market in 2022 and is expected to maintain its dominating position over the forecast period. Countries like China and Japan have policies supporting EV adoption and battery recycling facilities. North America is expected to exhibit fastest growth rate during the forecast period owing to increasing EV sales and battery recycling targets in the US.
Key players operating in the electric vehicle battery recycling market are Accurec Recycling GmbH, American Manganese Inc. Battery Solutions, Li-Cycle Corp., G & P Batteries, Recupyl, Retriev Technologies, Sitrasa, Floridienne, and Umicore. The market is dominated by global players offering integrated solutions for battery recycling.