Electric Vehicle Battery Recycling Market by Chemistry (Lead-acid Battery, Lithium-based Battery, Nickel-based Battery, and Others), Application (Electric Cars, Electric Buses, Energy Storage Systems, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Electric Vehicle Battery Recycling Market Analysis

The global electric vehicle battery recycling market is predicted to garner $13,299.6 million in the 2020–2028 timeframe, growing from $1,217.1 million in 2020 at a healthy CAGR of 37.1%.

Market Synopsis

Rising demand for recycled products and materials, is expected to accelerate the growth of the electric vehicle battery recycling market.

However, deficiency of battery recycling facilities and high capital required for its setup may be growth-restricting factors for the market.

According to the regional analysis of the market, the Asia-Pacific electric vehicle battery recycling market is anticipated to grow at a CAGR of 37.8% by generating a revenue of $6,729.6 million during the review period.

Electric Vehicle Battery Recycling Overview

Batteries are used as a secondary power source for automobile. Electric vehicle batteries (EVBs) are batteries that are used to power the propulsion system of a battery electric vehicle. Electric vehicle batteries are usually rechargeable batteries which are designed with a high ampere-hour capacity. These batteries come in small sizes and are light in weight, which also helps to cut the weight of the vehicle and thereby recover the vehicle’s performance. Whereas, recycling is the procedure of converting waste materials into new materials. The recovery of energy from waste materials is often involved in this concept. Battery recycling is a recycling activity that purpose to reduce the number of batteries being disposed as municipal solid waste. It contains several toxic chemicals and heavy metals and disposing of them by the same process as regular household waste has raised concerns over water pollution

Covid-19 Impact on the Global Electric Vehicle Battery Recycling Market

The COVID-19 pandemic has negatively affected the global electric vehicle battery market due to shutdown of production line. During this pandemic, the demand for electric car reduced due to strict travelling and transportation restrictions along with shut down of shops and industries. Lockdown and movement restriction orders barred workers from functioning recycling facilities. Big industries were shut down because of the absence of labor and all the workers traveled to their native lands because of COVID. Weakening in customer spending and economic uncertainty are likely to affect the market growth. So, Covid-19 impact on electric vehicle battery recycling market is negative.

Growing Demand for Rising Concerns Regarding Global Warming to Surge the Market Growth

Rising global concerns regarding the negative effect of climate change and global warming along with alarming pollution levels recorded in major countries in Asia Pacific region such as, India, china, have created a significant demand for electric vehicles which create demand for the batteries. Electric vehicle batteries are recycled once they reach the end of their potential use, positively impacting the environment. Recycling plays and important role  in decreasing the effect of pollution.

Moreover, due to growing environmental concerns, there is a surge in the demand for electric vehicles (EVs) among consumers. Rising sales of EVs also is expected to upsurge the total number of EVBs at the end of its deterioration period, which is anticipated to raise the demand for recycling of the total number of batteries used in the electric vehicles. It is also expected of EVB recycling companies to rise their recycling capacity owing to rise in the number of total batteries procured from the rising sales of EVs and batteries procured from second life utilization sources. All these factors are expected to support the growth of the electric vehicle battery recycling market throughout the forecast period.

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

High Setup Cost of EVB Recycling Plant to Restrain the Market Growth

The EVB recycling plant includes higher costs of operations including transaction and collection costs owing to complex processes involved in the extraction of the highly valuable elements such as batteries as well as uncertainties regarding the safety, quality, and remaining lifetime of batteries sent for refurbishment, could hamper the large-scale development of second-life battery repurposing. Additionally, lack of awareness of EVB recycling is also anticipated to act as a barricade to the growth of the electric vehicle battery recycling market.

Increase in Demand for Electric Vehicles to Create Massive Investment Opportunities

Battery manufacturing is seen as the key capability and requirement for nation’s wish to produce electric vehicles. There are countries such as, United States, China and Germany around the world that are rushing to develop “Gigafactories” to produce EV batteries at scale. Integrated recycling of lithium ion batteries is vital for efficient battery manufacture. These opportunities contain the growing focus on reducing the use of natural resources for battery manufacturing. In addition to this, adoption of eco-friendly batteries, the rise and development of the battery supply chain recover the economy of developing countries is also the opportunity to this market to grow. Advanced testing techniques to improve alternative cathode materials and highly productive systems that promote reagent use are electric vehicle battery recycling market trends.

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

Source: Research Dive Analysis

The lithium-based sub-segment is anticipated to have the fastest market growth and generate a revenue of $6,099.8 million by 2028, growing from $541.0 million in 2020. The growth of the lithium-based sub-segment for the global electric vehicle battery recycling market is due to some factors including high power-to-weight ratio, high energy efficiency, good high-temperature performance, and low self-discharge, that provide significant environmental benefits over other fossil fuel alternatives. With the steady rise in electric vehicles, an immediate impact on the reduction of carbon emissions is expected. Such key factors may have significant impact on market growth during the projected period. All these factors help to rise in the demand for lithium ion car battery.

The lead-acid battery sub-segment is predicted to have a substantial market share in the global market and is expected to register a revenue of $3,630.5 million during the forecast period. Lead-acid batteries are considered an ideal source of power which are heavyweight, cost-competitive, and maintenance-free. Increased usage of lead-acid batteries in several applications such as back-up power supplies, Electric scooter and marine applications as well as factors like simplicity, cost-effectiveness, and energy efficiency, are expected to drive the growth of this sub-segment. More than 97% of lead-acid batteries are recycled in the US and Europe, and around 75% of the lead used in new lead-acid batteries is derived from recycled batteries. All these factors help to rise in the demand for lead-acid batteries over time.

Source: Research Dive Analysis

The electric cars sub-segment of the global electric vehicle battery recycling market is projected to have the fastest growth and surpass $5,485.1 million by 2028, with an increase from $470.7 million in 2020, with CAGR 38.4%. Cars produce a lot of carbon emissions that are evicted into natural atmosphere, leaving people vulnerable to pollution. In order to positively help the environment, an electric car is a great step forward. Electric cars have zero tailpipe emissions making them greener, cleaner and better for the environment than petrol or diesel cars.

Source: Research Dive Analysis

The Market for Electric Vehicle Battery Recycling in Asia-Pacific to be the Most Dominant

The Asia-Pacific electric vehicle battery recycling market accounted for largest market share of $598.8 million in 2020, and is projected to register a revenue of $6,729.6 million by 2028, with a CAGR of 37.8%. The extensive growth of the Asia-Pacific electric vehicle battery recycling market is mainly driven by the rising production and sales of electric car battery and e-vehicles, and rising investments by private and public players to develop the electric vehicle battery recycling industry in, Japan, India, Vietnam, Australia, and China. These factors are anticipated to drive the demand in the electric vehicle battery recycling market across the region.

Competitive Scenario in the Global Electric Vehicle Battery Recycling Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading electric vehicle battery recycling market players are ACCUREC Recycling GmbH, American Manganese Inc., Battery Solutions, LI-CYCLE CORP., G & P Service, Recupyl, Retriev Technologies, SITRASA, SNAM S.A.S., and Umicore.

Porter’s Five Forces Analysis for the Global Electric Vehicle Battery Recycling Market:

• Bargaining Power of Suppliers: Most of the companies operating in electric vehicle battery recycling focus on providing unique experiences to the users. The number of suppliers that provide electric vehicle battery are less in number as the market is still under the development stage. The suppliers have high bargaining power as customer choose for best and elegant services irrespective of cost. Customers are ready to pay more for better services that gives high power to the suppliers. 
  Thus, the bargaining power of suppliers is high.
• Bargaining Power of Buyers: Buyers have low bargaining power, as the buyers usually focus on good quality and zero emission vehicles. Also, there is less switching between the companies as customers in electric vehicle battery recycling industry are loyal to their brands. Hence, the bargaining power of buyers for this market is low. 
  Thus, the bargaining power of the buyers is low.
• Threat of New Entrants: The companies entering electric vehicle battery recycling require high investment cost and expertise knowledge to provide the travelers with best experience. Also, customers are loyal to their vehicle companies and do not prefer switching to other companies. 
  Thus, the threat of the new entrants is low.
• Threat of Substitutes: There is no alternative product for electric vehicle battery recycling solutions. 
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is moderate. The number of players operating in electric vehicle battery recycling are high and strategies adopted by these players such as acquisitions, partnerships, and new technologies are increasing significantly. 
  Therefore, competitive rivalry in the market is moderate.