Growing Demand for Electric Vehicles Globally Expected to Propel the Growth of the Global Battery Recycling Market by 2031

In today’s technologically advanced world, batteries play a crucial role in powering a wide range of devices, from smartphones and laptops to electric vehicles and renewable energy systems. However, the increasing demand for batteries has also led to a rise in battery waste, posing significant environmental health risks. This is where battery recycling comes into play. Batteries contain various toxic and hazardous materials, including heavy metals like lead, mercury, and cadmium as well as lithium and other potentially harmful chemicals. If not disposed of properly, these substances can leach into soil and water, contaminating ecosystems and posing serious risks to human and animal health. By recycling batteries, these valuable materials can be recovered, and the environment can be protected. Battery recycling reduces the demand for virgin resources, and recycling contributes to a more sustainable and circular economy. Moreover, the recycling process for batteries requires less energy compared to the production of new batteries from raw materials.   

Forecast Analysis of the Global Battery Recycling Market

According to the report published by Research Dive, the global battery recycling market is anticipated to $47.2 billion and grow at a stunning CAGR of 14.5% over the forecast period from 2022 to 2031.

The increasing demand for electric vehicles among individuals globally has increased the demand for batteries, which is expected to bolster the growth of the global battery recycling market over the estimated timeframe. Moreover, the growing demand for lithium-ion batteries in various electronic devices such as smartphones, laptops, and many other electronics and electric vehicles is predicted to create massive growth opportunities for the market throughout the forecast period. However, high initial costs for battery recycling may hinder the growth of the market during the analysis timeframe. 

The major players of the battery recycling market include RecycLiCo Battery Materials Inc., GEM Co., Ltd., ACCUREC-Recycling GmbH, Guangdong Brunp Recycling Technology Co., Ltd., The Doe Run Company, Battery Systems Inc., Li-Cycle Corporation, Umicore, Glencore, EnerSys, and many more. 

Key Developments of the Battery Recycling Market

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global battery recycling market to grow exponentially. For instance:

• In March 2023, Stena Recycling, a leading Swedish-based company that focuses on sustainable waste management and recycling services to businesses and communities launched its first recycling facility for lithium-ion batteries. This unit is equipped with advanced recycling techniques that could recycle 95% of an electric battery recycling.
   
• In April 2023, Volkswagen of America, Inc., one of the world’s leading automobile manufacturers announced its collaboration with an American company that focuses on recycling lithium-ion batteries to produce battery materials for electromobility and electrical storage systems. With this collaboration, the companies aimed to make a battery recycling strategy for all Volkswagen and Audi electric vehicle battery packs and promote a circular EV economy.
   
• In May 2023, Blue Whale Materials, a leading battery recycling company announced its acquisition of Eclipse Energy, a renowned battery testing and evaluation lab. This acquisition would enable Blue Whale Materials to expand its battery testing and evaluation process of the life cycle of batteries.

Most Profitable Region

The Asia-Pacific region of the battery recycling market generated the highest revenue during the estimated timeframe. The strong existence of strong market players across the region and the growing demand for high-voltage battery tracking systems among them are expected to boost the regional growth of the market throughout the analysis period. 

Covid-19 Impact on the Battery Recycling Market

Though the outbreak of the Covid-19 pandemic has brought several uncertainties across various industries., it has had a moderate impact on the battery recycling market. Initially, the disruptions in the supply chain, closure of manufacturing plants, and severe economic slowdown have reduced the demand for battery recycling. Moreover, the decreased demand for batteries used in electric vehicles has further reduced the rate of the battery recycling process during the pandemic. However, the rising adoption of work-from-home culture among organizations has increased the demand for batteries used in portable devices. This has increased the demand for battery recycling throughout the crisis.