The Global Transportation Battery Recycling Market Projected to Grow at a CAGR of 8.2% and Generate a Revenue of $9,947.5 million by 2030

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The global transportation battery recycling market is predicted to be valued at $9,947.5 million by 2030, surging from $4,748.3 million in 2021, at a noteworthy CAGR of 8.2%.

Impact Analysis of COVID-19 on the Transportation Battery Recycling Market

During the COVID-19 pandemic, demand, supply, export-imports were severely affected for manufacturing of electric vehicles as well as their sub parts such as batteries, wheels, and other spare parts. Lockdowns were implemented all around the world, and restrictions on transit and travel created a drop in demand for vehicles, which led to a drop in battery recycling demand. Imports and exports between countries were prohibited, resulting in the breakdown of the production process as the raw material supply chain was interrupted.

However, to support and develop the battery recycling industry, governments of various countries offered subsidies and launched a number of programs to develop infrastructure for battery recycling, electric vehicle manufacturing, and spare part manufacturing of electric vehicles. A stronger set of battery regulations is being prepared by the European Union, and it is anticipated that these set of battery regulations will get into effect in 2022–2023. The National Electric Mobility Mission Plan was created to raise awareness and promote electric and hybrid vehicles use across India. As people are becoming more aware regarding electric vehicles, demand for these vehicles is expected to rise in the near future, positively impacting the transportation battery recycling industry.

Global Transportation Battery Recycling Market Analysis

Batteries are used in several industries as a power source but the major end-user of batteries is the automobile industry. In electric vehicles, batteries are used and in other vehicles batteries are used for powering up the system and starting the engine. Increasing awareness and adoption regarding electric vehicles is expected to create opportunities in the market for recycling of transportation batteries. As fuel prices are rising daily, electric vehicles seem to be more affordable option than fuel-based vehicles. The battery of electric vehicle is an essential component as it provides electrical power and vehicle’s working is entirely dependent on it. Depending on the type, these batteries might last 10 to 20 years. Used batteries need to be recycled beyond this point as they contain harmful materials such manganese, lithium, and others. If the batteries are not recycled carefully, these materials could harm the environment. Electrodes of nickel and cobalt are used in battery as cathodes and anodes to complete the process of electron transfer between anodes to cathodes. Nickel and cobalt are reusable and recyclable. Due to these characteristics, less amount of freshly mined nickel and cobalt will be required to manufacture batteries. This reduces damage caused to environment due to mining of raw materials.

However, lack of infrastructural availability and investments in these sectors is predicted to hinder revenue growth of the market. Along with that, basic materials required in the battery manufacturing process such as nickel, cobalt, and manganese have very extensive power supply chain. Raw materials for battery manufacturing are abundantly available in the market at a lower price compared to cost of battery recycling, which raises the cost of final recycled batteries. People are more likely to purchase newly manufactured batteries instead of recycled batteries which is projected to limit revenue growth of the transportation battery recycling market.

Adoption of new technology may increase battery capacity, large-scale manufacturing, decreased component pricing, and other developments, these factors are expected to reduce the price of battery recycling and battery production. Lithium-ion batteries are anticipated to outperform all other rechargeable batteries in the renewable and sustainable energy market as a result of falling prices of lithium batteries.

Global Transportation Battery Recycling Market, Segmentation

The global transportation battery recycling market is segmented based on type, sources, and region.

Type:

The type segment is further classified into lithium-based battery, lead-acid battery, nickel-based battery, and others. Among these, lead-acid based battery sub-segment is anticipated to have a dominant market share and surpass $6,517.1 million by 2030, with an increase from $3,086.3 million in 2021. Due to the ability to store large amount of energy, lithium ion batteries are most typically utilized in transportation vehicles. These batteries are small in size and lightweight. Lithium ion batteries are simple to charge and can be charged full in very less time. In comparison to other types of batteries, lead-acid batteries have a low manufacturing cost per watt. The method of production of lead-acid batteries is less time consuming. Many types of transportation vehicles use these batteries. Temperature fluctuations have no effect on the performance of lead-acid batteries. The recycling process of lead-acid batteries is less complicated which makes it easy to recycle.

Sources:

The sources segment is further classified into industrial batteries, automotive batteries, electronic appliances batteries, and others. Among these, the industrial batteries sub-segment is expected to witness a dominating market share and shall surpass $5,014.3 million by 2030, with an increase from $2,426.6 million in 2021.during the forecast period. In industrial applications such as UPS systems, emergency power backup, and machinery, industrial batteries play a significant role. These batteries are inexpensive and operate well even when exposed to extreme temperatures. The industrial batteries sub-segment is the largest contributor to the transportation battery recycling market.

Region:

The global transportation battery recycling market in the Europe region is projected to the dominating market. This regions market generated a revenue of $1,691.3 million in 2021 and is projected to reach up to $3,498.5 million by 2030. The Europe transportation battery recycling market is being driven by strict environmental regulations and fastest rate of adoption of EVs. Rising prevalence of environmental practices in the Europe region is expected to drive market revenue growth during the forecast period. Large presence of electric vehicle manufacturers in this region is expected to boost revenue growth of the regional transportation battery recycling market during the forecast period.

Key Players in the Global Transportation Battery Recycling Market

Some of the leading transportation battery recycling market players are

1. Cell2Recycle, Inc.
2. Umicore
3. Aqua Metals, Inc.
4. Exide Technologies
5. Battery Solutions
6. Contemporary Amperex Technology Co., Limited
7. Kochi Industries
8. Li-Cycle Corp
9. GEM Co. Ltd.

In April 2022, Cell2Recycle, Inc., a U.S. based company announced to establish strategic partnership to expand its battery recycling and sorting using Li Industries’ advanced technology. The collaboration will initially focus on commercializing Li Industries' unique battery sorting technology, which will enable end-of-life batteries to be sorted more efficiently and accurately by battery chemistry.