Battery Recycling Market by Battery Type (Li-ion Battery, Lead Acid Battery (LAB), Nickel-based Battery, Zn-MnO₂ based battery, and Others), Source (Consumer Electronics, Automotive, Industrial, and Others), Technology (Pyrometallurgical, Hydrometallurgical, Hybrid, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022-2031

Global Battery Recycling Market Analysis

The Global Battery Recycling Market Size was $12.5 billion in 2021 and is predicted to grow with a CAGR of 14.5%, by generating a revenue of $47.2 billion by 2031.

Global Battery Recycling Market Synopsis

The increasing demand for electric vehicles (EVs) and the rising adoption of renewable energy sources are the primary drivers of the battery recycling market. As the use of EVs continues to grow, so does the demand for lithium-ion batteries, which are used to power these vehicles. Battery recycling provides a sustainable solution for managing end-of-life batteries by recovering valuable metals such as cobalt, nickel, and lithium from spent batteries. These recovered materials can then be reused in the production of new batteries, reducing the reliance on virgin materials and lowering the environmental impact of battery production. Furthermore, governments and regulatory bodies around the world are implementing stringent environmental regulations to reduce greenhouse gas emissions and promote sustainability. These factors are anticipated to boost the battery recycling industry growth in the upcoming years.                  

However, one of the disadvantages of battery recycling is that of high costs. The high cost of recycling can make it challenging for new companies to enter the market, which can limit competition and innovation in the industry. As a result, the availability of recycling services may be limited, and the cost of these services may be higher than necessary. Furthermore, the cost of acquiring and maintaining the necessary equipment and technology for recycling batteries is also high. For example, some battery recycling processes require specialized equipment and materials such as chemicals and high-tech sorting machines.

The rising need for reducing improper disposal of batteries as well as shortage of critical materials such as lithium, cobalt, and nickel are encouraging government investment in battery recycling as well as private investment in a circular economy. This, in turn, may offer lucrative opportunities to battery recyclers. Recovery and reuse of spent batteries present numerous benefits. Secondary use of batteries could lessen the dumping of reusable products, while recycling critical materials such as lithium, nickel, cobalt, copper, etc. from landfills. Many governments are implementing regulations to encourage battery recycling and reduce the environmental impact of electronic waste. This has led to an increase in demand for recycling services and hence provides an opportunity for the battery recycling market to grow.

According to regional analysis, the Asia-Pacific battery recycling market accounted for the highest market share in 2021. China outperforms every other country in the world when it comes to recycling batteries. It had more than three times as much current and projected capacity for recycling lithium-ion batteries as the United States as of the end of 2021. Moreover, growing EV sales across this region, especially in India, Japan, and South Korea are expected to offer ample growth opportunities.

Battery Recycling Overview

Battery recycling is the process of recovering useful materials from used batteries so that they can be reused. The process of battery recycling is important because batteries contain valuable metals such as cobalt, nickel, and lithium, which can be used to make new batteries or other products. Battery recycling has several benefits including reduction of the environmental impact by reducing the amount of waste that ends up in landfills. It also conserves natural resources by reusing valuable metals and materials.

COVID-19 Impact on Global Battery Recycling Market

The COVID-19 pandemic had brought several uncertainties leading to severe economic losses, as various businesses across the world were on a standstill. It had moderate impact on the battery recycling market. In the initial months of the pandemic, the demand for battery recycling reduced due to disruptions in supply chain, closure of manufacturing plants, as well as economic slowdown across several countries. In addition, the import-export restrictions were laid down on major battery recycling countries. Restrictions on travel and transportation had further made it difficult to transport materials and products, which led to delays and increased costs. The pandemic had also led to a reduction in demand for certain types of batteries, such as those used in electric vehicles. This has resulted in a decrease in the number of batteries being recycled, which further impacted the market. The pandemic had also led to a shift in the consumer behavior, with more people working from home and reducing their travel. This impacted the demand for batteries used in portable devices such as laptops and smartphones, which in turn boosted the battery recycling market. Many governments around the world have provided support to the battery recycling market as part of their economic recovery plans. This includes funding for research and development, as well as incentives for companies to invest in battery recycling. For instance, in 2022, The US government announced $3.1 billion funding for battery manufacturing, processing, and recycling.

Growing Demand for Electric Vehicles to Drive the Market Growth

The increasing demand for electric vehicles is one of the main drivers of the battery recycling market. As the adoption of electric vehicles continues to grow, the demand for batteries also increases, which in turn increases the need for battery recycling services. The batteries used in electric vehicles contain valuable metals such as lithium, cobalt, and nickel, which can be recovered through recycling. These metals are in high demand for use in new batteries, as well as other applications, such as consumer electronics and renewable energy storage. Battery recycling not only helps to recover valuable materials, but also reduces the environmental impact of battery production and disposal. By recycling batteries, the amount of waste sent to landfills is reduced, and the environmental impact of mining for new materials is also minimized. The increasing demand for electric vehicles is a significant driver of the battery recycling market, and as the adoption of electric vehicles continues to grow, the demand for battery recycling services is expected to increase.

To know more about global battery recycling market drivers, get in touch with our analysts here.

High Initial Costs for Battery Recycling to Restrain the Market Growth

Battery recycling plants require significant capital investments to build and operate, which can be a deterrent for companies looking to enter the market. The high cost of entry can limit the number of companies able to operate in the market, which in turn can limit the availability of recycling services. The high initial costs of building and operating battery recycling plants can be a significant restraint to the growth of the battery recycling market. The cost of entry into the market can be prohibitively high, especially for small and medium-sized enterprises that may not have financial resources to invest in large-scale recycling facilities. These factors restrain the market growth.

Growing Demand for Lithium-ion Batteries to Drive Excellent Opportunities

The growing demand for lithium-ion batteries in various electronic devices and electric vehicles, smartphones, and other electronics produced is projected to generate opportunities in the battery recycling market. The rise in environmental concerns about e-waste and hazardous chemicals in batteries has led to an increase in demand for battery recycling services. The recycling of these batteries has become increasingly important due to the environmental impact of extracting these metals from the earth. Recycling batteries reduces the need for mining, which causes significant damage to the environment, and also reduces the amount of waste that ends up in landfills. Furthermore, lithium-ion batteries contain valuable metals like cobalt, nickel, and lithium that can be recovered through recycling. As the demand for these metals increases, recycling becomes more cost-effective and attractive. All these factors are significant opportunities for the battery recycling industry growth in the upcoming years.                

To know more about global battery recycling market opportunities, get in touch with our analysts here.

Global Battery Recycling Market, by Battery Type

Based on battery type, the market has been divided into li-ion battery, lead acid battery (LAB), nickel-based battery, Zn-MnO₂ based battery, and others. Among these, the lead acid battery sub-segment accounted for the highest market share in 2021 whereas the Li-ion battery sub-segment is estimated to show the fastest growth during the forecast period.

Global Battery Recycling Market Size, by Battery Type, 2021

Source: Research Dive Analysis

The lead acid battery (LAB) sub-type accounted for the largest market share in 2021. Currently, LAB recycling is more advanced with a recycling rate of more than 90%, whereas it is below 5% for Li-ion batteries. Pyrometallurgical recycling technology dominates industrial LAB recycling. In the U.S. alone LABs have a recycling rate of more than 99%, making them the most recycled consumer product. The high recycling rate is majorly attributed to the industry's investment in a closed-loop collection and recycling system that avoids batteries from ending up in landfills.

The li-ion battery sub-type is anticipated to show the fastest growth during the forecast period. The utilization of Li-ion batteries in consumer electronics, energy storage systems, and electric vehicles is expanding at a rapid pace, which is propelling the demand for critical materials such as lithium and cobalt. Therefore, the focus on recycling batteries is increasing by governments, EV manufacturers, as well as recyclers for developing sustainable products as well as facilitating the shortage of critical minerals and lowering pollution from unsafe components.

Global Battery Recycling Market, by Source

Based on source, the market has been divided into consumer electronics, automotive, industrial, and others. Among these, the consumer electronics sub-segment accounted for the largest market share in 2021.

Global Battery Recycling Market Share, by Source, 2021

Source: Research Dive Analysis

The consumer electronics sub-segment held the largest market share of the battery recycling market in 2021. In the last few years, the demand for batteries has increased along with the increasing demand for electronic devices, which has increased battery waste. Battery recycling not only reduces electronic waste in landfills but also serves as a source of raw materials to produce new batteries. In the upcoming years, it is anticipated that the market for battery recycling in consumer electronics would expand further. The growing awareness of the effects of electronic waste on the environment is one of the major forces behind this rise. Globally, governments are enacting laws and policies to encourage battery recycling and lessen electronic waste.

Global Battery Recycling Market, by Technology

Based on technology, the market has been divided into pyrometallurgical, hydrometallurgical, hybrid, and others. Among these, the pyrometallurgical sub-segment held largest market share in 2021.

Global Battery Recycling Market Growth, by Technology, 2021

Source: Research Dive Analysis

The pyrometallurgical sub-segment accounted for the highest market share in 2021. The market for batteries is growing significantly owing to the demand for electric vehicles and consumer electronic products; however, the massive amount of used batteries that will be produced as a result will cause serious environmental issues. Pyrometallurgical technique is an appropriate technique for recycling these batteries in large-scale industrial applications due to its various benefits such as less waste liquid output and high efficiency. A high percentage of metals from used batteries can be recovered using the pyrometallurgical recycling technique, making it the most efficient technique for battery recycling.

Global Battery Recycling Market, Regional Insights

The battery recycling market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Global Battery Recycling Market Size & Forecast, by Region, 2021-2031 (USD Billion)

Source: Research Dive Analysis

The Market for Battery Recycling in Asia-Pacific Accounted for the Largest Market Share in 2021

The Asia-Pacific battery recycling market accounted for the largest market share in battery recycling industry in 2021, owing to some of the major factors such as presence of major players in China and rising EV and electronic product sales across India, Japan, South Korea, and Australia. China leads the battery recycling market in this region. China's policies require a high-voltage battery tracking system to assure that batteries can be recycled after their usage in various applications. Since the extraction of cobalt, lithium, and other critical materials could harm the environment, the government of China has decided to avoid the unregulated dumping of Li-ion batteries.

Competitive Scenario in the Global Battery Recycling Market

Investment and agreement are common strategies followed by major market players. For instance, in 2022, Attero, one of the major players in the battery recycling business in India, announced around $80 million investment to set up Li-ion battery recycling plant in southern part of India.

Source: Research Dive Analysis

Some of the leading battery recycling market players are GEM Co., Ltd., Guangdong Brunp recycling Technology Co., Ltd., Battery Systems Inc., Umicore, ENERSYS, Glencore, Li-Cycle Corporation, The Doe Run Company, ACCUREC-Recycling GmbH, RecycLiCo Battery Materials Inc., and others.