Increasing Support by the European Union for Lithium-Ion Battery Recycling to Propel the Growth of the Europe Lithium-ion Battery Recycling Market by 2031

Europe has taken a leading role in the development of a circular economy for lithium-ion batteries. Lithium-ion batteries are used in Europe for various applications such as electronic devices, electric vehicles, and many more. However, due to the growing demand for lithium-ion batteries, their disposal has become a major environmental concern. The increasing demand for electric vehicles and renewable energy storage systems is expected to result in the production of a large number of used batteries in the coming years. Therefore, it is crucial to implement efficient and sustainable recycling practices for these batteries. 

In 2019, the European Union (EU) adopted the Circular Economy Action Plan, which aims to promote more sustainable use of resources and reduce the impact of waste on the environment. One of the main goals of the plan is to establish a framework for the circular economy of batteries. Moreover, the establishment of a lithium-ion battery recycling industry creates jobs and economic opportunities. Recycling batteries requires specialized knowledge and equipment, creating jobs in the recycling sector. Additionally, the recovered metals can be sold to battery manufacturers, creating a circular economy and reducing the reliance on imported raw materials. 

Forecast Analysis of the Europe Lithium-ion Battery Recycling Market

According to the report published by Research Dive, the Europe lithium-ion battery recycling market is anticipated to generate a revenue of $3,015.50 million and rise at a noteworthy CAGR of 19.3% throughout the estimated timeframe from 2022 to 2031.

The increasing focus on lithium-ion battery recycling by European Union owing to rising environmental issues such as water pollution and air pollution is expected to bolster the growth of the Europe lithium-ion battery recycling market during the analysis timeframe. Besides, the recycling of lithium-ion batteries can help decrease the dependence on expensive materials such as nickel and cobalt, minimize the negative environmental and human impact, and increase the battery supply chain security which are the factors expected to fortify the growth of the market over the forecast period. Moreover, the increasing use of recycled batteries in a wide range of consumer electronic applications is expected to create immense growth for the Europe lithium-ion battery recycling market over the estimated timeframe. However, the lack of collection infrastructure and the dearth of technology may impede the growth of the market in the coming period. 

The major players of the Europe lithium-ion battery recycling market include Li-Cycle, REDUX Recycling GmbH, Saft Groupe SA, BASF SE, SNAM, Volkswagen Group, Stena Recycling, Umicore, Eramet, Accurec Recycling GmbH, and many more.

Key Market Developments

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 Europe lithium-ion battery recycling market to grow exponentially. For instance:

• In July 2021, Ecobat, a world leader in the production of lead, lead alloys, and the recycling of lead batteries announced its acquisition of Promesa, a Germany-based renowned operator of EV lithium-ion battery recycling. With this acquisition, Ecobat would expand its position in the lithium-ion battery recycling space and make a future investment to enhance the Promesa facility with additional dismantling capabilities throughout Germany.
   
• In March 2023, Li-Cycle Holdings Corp., a Canada-based company that is engaged in the recycling of lithium-ion batteries announced its partnership with the KION Group, a renowned global provider of industrial trucks and supply chain solutions. With this partnership, the companies aimed to develop a new lithium-ion battery recycling unit in France by using innovative submerged shredding technology that is safe, environment-friendly, and cost-effective.
   
• In March 2023, Stena Recycling, a Swedish-based company that provides sustainable waste management and recycling services announced the launch of its first industrial recycling facility for lithium-ion batteries. This facility is designed with an advanced recycling process to recycle 95 percent of an electric vehicle battery.

Most Profitable Country

Germany of the Europe lithium-ion battery recycling market held the largest share of the market in 2021. This is mainly due to the growing demand for electric vehicles together with several governments offering subsidies for rechargeable batteries across the region. Moreover, the construction of new manufacturing facilities by leading companies of the region to meet the increasing demand for lithium-ion batteries in various applications is further expected to boost the regional growth of the market over the analysis timeframe.

Covid-19 Impact on the Europe Lithium-ion Battery Recycling Market

The rise of the Covid-19 pandemic has harshly impacted the Europe lithium-ion battery recycling market, likewise, various other industries. This is mainly because the pandemic has disrupted the supply chains and workforce and made factories shut down for a prolonged period due to the spontaneous spread of the virus. Moreover, the economic slowdown has resulted in a sharp drop in electric vehicle sales. Additionally, the material flow from and into the biggest centers for recycling and battery manufacturing owing to the travel and import-export restrictions has declined the growth of the Europe lithium-ion battery recycling market throughout the crisis.