Automotive Battery Recycling Market to Observe Significant Growth by 2031 Due to Technological Advancements and Joint Ventures by Market Players, such as Umicore, Primobius GmbH, and Others

Recycling of old batteries decreases waste and as up to 99% of a lead-acid battery is recyclable. It also diminishes the necessity to use new raw materials and components. Nowadays, electric vehicles (EVs) are gaining huge popularity and their adoption has surged across the globe. EVs may not release carbon dioxide during their functioning; however, the batteries on which the run can cause a serious environmental issue after their lifespan ends. In the next 10 to 15 years, a huge number of EV batteries will come to the end of their life, hence, it is highly essential to have a robust battery recycling industry in place.

Forecast Analysis of the Automotive Battery Recycling Market

The companies involved in battery recycling are carrying out several measures, such as technological advancements, investments, and corporate expansions, which is estimated to foster the growth of the global market by 2031. Research Dive in its latest published report projects that the automotive battery recycling market will grow at a CAGR of 6.0% and garner a revenue of $19,476.4 million during the forecast period from 2022 to 2031.

The global market is anticipated to observe a strong growth over the forecast period due to the rising demand and growing adoption of electric vehicles at a global scale. However, the higher investments required to set up a battery recycling plant may hinder the growth of the global market in the coming years.

Automotive Battery Recycling Market Trends and Developments

The significant market players are investing in research and development to cater the mounting demand for automotive battery recycling. Some of the foremost players of the automotive battery recycling market are Li-Cycle Corp., OnTo Technology LLC., Envirostream Australia Pty Ltd, Retriev Technologies Inc., Umicore, Raw Materials Company Inc., Limited (CATL), American Manganese Inc., Neometals Ltd, Duesenfeld, a Contemporary Amperex Technology Co., and others. These players are focused on forming strategies, for example, mergers and acquisitions, partnerships, novel developments, and collaborations to achieve a prominent position in the global market. For instance:

• In December 2020, MG Motor India Pvt. Ltd, a new entrant in the Indian car industry, collaborated with TES-AMM, an electronic waste recycling company, to efficiently recycle the lithium batteries installed in its present and upcoming EVs.
   
• In January 2022, Stelco Holdings Inc., a company focused on the manufacture and sale of steel products, signed a Memorandum of (MOU) with Primobius GmbH, a battery recycling joint venture, in order to commercialize advanced EV battery recycling and processing machineries in the North America region.
   
• In February 2022, Umicore, a pioneer in the recycling of rechargeable batteries, signed a deal with Automotive Cells Company (ACC), dedicated to the manufacture of batteries for EVs in Europe, and announced the launch of new generation Li-ion battery recycling technology. This new technology significantly improves metallurgical process with increased extraction efficiency of copper, nickel, and cobalt to now reach over 95% yield for a wide-range variety of battery chemistries.

COVID-19 Impact on the Automotive Battery Recycling Market

The abrupt rise of the coronavirus pandemic in 2020 has negatively impacted the global automotive battery recycling market. This is mainly due to the cessation of recycling & manufacturing factories due to the implementation of lockdown during the pandemic period. Also, a significant drop in the sale of EVs, due to economic uncertainties during the pandemic has hampered the market growth. However, as the worldwide economy is recuperating with the easing of pandemic, the global market is expected to gain traction with a notable surge in the sale of EVs worldwide,

Most Profitable Region

The automotive battery recycling market in the Asia-Pacific region is expected to be the most dominant during the analysis period. This is mainly owing to the rising investments into battery recycling activities and surge in the development of battery recycling factories in this region.

China is the foremost electric vehicle market, which sold more than 1.18 million passenger EVs in 2019. The nation is not only at the forefront of the EV industry but has also developed a strong automotive battery recycling market to diminish the amount of harmful waste being discarded to the landfills. Also, in 2019, India managed to sell merely 3,600 passenger EVs, however, the nation is gearing up to transform 30% of its automotive sales into e-mobility by 2030. Therefore, with notable increase in the number of EVs, it is essential to develop a strong infrastructure for recycling EV batteries to resolve the problem of e-waste.