Battery Recycling Market Size, Share & Trends Analysis Report By Chemistry (Lithium-ion, Lead Acid, Nickel), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global battery recycling market size was valued at USD 10.36 billion in 2021 and is expected to expand at a CAGR of 7.6% over the forecast period. Stringent government regulations around safe battery disposal coupled with bottlenecks in virgin material sourcing is expected to aid the demand for battery recycling across major economies. The resources for new battery production are limited in comparison to the projected demand from various end-use industries. Battery recycling is important not only for the recovery of valuable materials and metals but also for efficient waste management in an attempt to eliminate hazardous environmental impacts. The use of recovered metal for recycled battery production can also help in the reduction of CO2 emissions to a large extent and energy requirements related to mining.

The COVID-19 impacted multiple industries. Additionally, the battery recycling market has suffered due to the closing of manufacturing and recycling operations, and stay-at-home orders. Battery recycling is a capital-intensive industry that needs substantial funding, manpower, and investment.

However, the economic uncertainty caused by the pandemic has resulted in widespread unemployment and reduced consumer expenditure. This impacted the battery recycling business, since governments diverted funds to healthcare functions.

Furthermore, due to the travel and import-export limitations, there were disruptions in the battery recycling supply chain, which substantially impacted the viability of non-renewable and environmentally harmful substances such as lead, cobalt, and lithium. These factors significantly impacted the revenue of the battery recycling market, during the pandemic.

Due to the rising population consumption of the primary resources such as lead and lithium is expected to grow, in the coming years. This necessitates the need to recycle utilized materials to conserve natural resources and reduce environmental footprint. Lead acid batteries are among the world’s most recycled products and account for over 80% of the worldwide lead usage with a high recycling rate across the globe.

The production of lead and other raw materials through the recycling method is an energy-efficient process as compared to the production of lead through mining. Moreover, the energy-saving process also helps in reducing carbon emissions. These factors in turn are expected to increase the recycling of lead acid batteries during the forecast period.

The technological and infrastructural improvements in the developed economies of Europe and North America are expected to increase demand for electric vehicles. This is anticipated to augment the demand for lithium-ion batteries, thereby fueling the industry’s growth during the next nine years.

Stringent regulations in the U.S. and an increase in battery recycling activities have led to the stable growth of the battery market in North America. In February 2017, Johnson Controls formed a technology license agreement with Aqua Metals, California, U.S. The agreement included the licensing of the latter’s Aqua Refining technology for battery manufacturing & recycling

Application Insights

The transportation segment accounted for a share of 64.2% in 2021 Battery is widely used in an automobile owing to its ability to deliver high power to start an engine. In 2021, the global automobile sector sold 58.0 million vehicles, representing a 3.9% increase over the previous year. Globally increasing income levels, a renewed desire for electric cars and other vehicles, favorable electric infrastructure growth, and continued technological innovations are the factors expected to drive demand for the battery-powered vehicles in the future. In January 2019, Call2Recycle, Inc. partnered with Cell Block Fire Containment Systems to enhance its safe battery transportation, handling, and collection.

Various government regulatory agencies have implemented policies to support the electric vehicle market. Environmental issues such as increasing pollution, energy depletion, global warming, and biological hazards are expected to facilitate a shift in consumer preferences toward electric vehicles, thereby augmenting the demand for recycled batteries.

The industrial segment is expected to register a CAGR of 7.1% from 2022 to 2030. Lead acid batteries find application in Uninterruptible Power Supply (UPS) systems as they provide high power density and enhanced life expectancy. The UPS market is expected to witness considerable growth during the forecast period on account of the growing demand for high power range systems. The increasing adoption of UPS systems as an essential power backup device is projected to impact the market growth throughout the forecast period.

Rapid infrastructural development coupled with the expansion of commercial sectors such as IT, solar UPS systems, retail, and hospitality is anticipated to drive the demand for UPS systems, which is likely to further increase the utilization of the recycled products during the forecast period.

Chemistry Insights

The lead-acid segment dominated the market with a share of 90.7% in 2021 on account of cost efficiency, reliability, high capacity, safety, and wide application scope. Lead acid batteries are highly recyclable in nature and over 95.0% of lead can be recycled during the process. These advantageous properties of lead acid battery recycling are anticipated to drive the demand in the coming years.

Lithium-ion batteries are majorly used in electric vehicles. The growing automotive and transportation industries along with increasing use of these batteries in numerous applications are the factors expected to increase the consumption of recycled batteries during the coming years.

Nickel metal hydride batteries are key substitutes to nickel cadmium, which poses environmental hazards due to the presence of cadmium heavy metal. These batteries are ideally suitable for use in electric vehicles and portable devices such as mobile handsets, cameras, and other consumer electronics appliances. The improper disposal of nickel cadmium batteries can result in the leak of toxic materials into landfills and underground water. Such environmental concerns are expected to boost the battery recycling market throughout the forecast period.

Moreover, the growing demand for rechargeable products in the automotive sector is expected to augment the demand during the coming years. For instance, in June 2021, BASF announced that it would begin constructing a new battery recycling prototype facility at its Cathode Active Materials facility in Schwarzheide, Germany. The company intends to use the improved solution to extract nickel, manganese, cobalt, and lithium from lithium-ion batteries that have reached the end of their useful life.

Regional Insights

Europe accounted for a significant market share of 31.0% in 2021. The European government's recycling efficiency targets are expected to enhance the battery recycling rate. The guidelines state that around 75.0%, 65.0%, and 50.0% weight of batteries must be recovered as recycled material for nickel-cadmium, lead-acid, and other chemistries respectively.

The recycling rate of spent lead acid batteries in North America is about 100.0%. In the U.S., around 99.0% of lead is reclaimed from spent products. Moreover, the increasing demand for UPS systems in commercial infrastructure, growing demand for electric vehicles, and the presence of key recyclers including Call2Recycle; Aqua Metals; Enersys; and Battery Solutions, Inc. are anticipated to drive the demand during the forecast period.

Central and South America is expected to demonstrate considerable market growth due to the rise in foreign investments in the region. For instance, in 2017, GS Yuasa Corporation installed a large-scale lithium-ion battery storage system in the Cochrane Coal-fired Power Plant, Chile. Large-scale passenger, as well as commercial car production in Latin America, is expected to drive the consumption of lithium batteries during the forecast period.

Asia Pacific is expected at the fastest CAGR of 8.4% throughout the forecast period. Countries such as China, India, and Japan are expected to witness high growth rates owing to the rising demand from end-use industries such as automotive.

Key Companies & Market Share Insights

The industry is highly competitive in nature with the presence of a large number of multinational recyclers operating their businesses through high production volumes. The companies in the global market are highly integrated from the collection of spent batteries to the sales and distribution in various locations.

The companies operate the business through extremely high recycling capacities, spread across the globe. Collection, recycling location, and distribution channels cater to the local as well as global demands and the market witness’s cross-border trade of used batteries. Some of the prominent companies in the global battery recycling market include:

• EnerSys

• G&P Batteries

• Exide Technologies

• Aqua Metals

• ECOBAT

• Call2Recycle

Battery Recycling Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global Battery Recycling Market report based on the chemistry, application, and region:

• Chemistry Outlook (Revenue, USD Million; 2019 - 2030)

  • Lithium-ion

  • Lead-acid

  • Nickel

  • Others

• Application Outlook (Revenue, USD Million, 2019 - 2030)

  • Transportation

  • Consumer electronics

  • Industrial

• Regional Outlook (Revenue, USD Million; 2019 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany
    • UK

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa