Battery Recycling Market Size, Share & Trends Analysis Report By Chemistry (Lithium-ion, Lead Acid, Nickel), By Application (Transportation, Industrial), By Region (Europe, Asia Pacific, North America), And Segment Forecasts, 2023 - 2030

Report Overview

The global battery recycling market size was valued at USD 1.38 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 37.7% from 2023 to 2030. The industry is expected to grow rapidly during the forecast period owing to the increasing popularity of Electric Vehicles (EVs) and renewable energy storage systems leading to a higher demand for batteries, and, in turn, driving the need for recycling. Governments around the world are implementing regulations to promote the recycling of batteries and reduce the environmental impact, which is expected to boost industry growth.

The U.S. emerged as the largest market in North America in 2022. Increasing sales of EVs in the U.S. owing to the formulation of supportive federal policies, such as the Responsible Battery Recycling Act of 2022 California, and the presence of leading industry players are expected to drive the demand for batteries in the country over the forecast period. The Responsible Battery Recycling Act of 2022 California instructs each battery retailer in the state to have a system for the collection of used rechargeable batteries for recycling and reusing purposes.

The U.S. has emerged as a growing market for the recycling of li-ion batteries owing to the presence of large-scale li-ion recycling facilities in the country. For instance, Li-cycle Corp. inaugurated its new li-ion recycling facility with 120,000 square feet of warehousing space. This facility can process 10,000 tons of battery material for electric vehicles annually. The company possesses the capacity to recycle 60,000 electric vehicle batteries.

Chemistry Insights

In terms of revenue, lead acid segment led the Battery recycling market in 2022, accounting a revenue share of 85.41%. Lead-acid batteries are suitable for recycling compared to other batteries owing to the extensive usage of reusable lead and plastics for manufacturing. Battery recycling companies collect used batteries from consumers for recycling and reusing purposes. The used batteries are first broken into pieces. Plastics are sent for recycling into a plastic recycler and then given shape by the process of extrusion.

Lithium-ion batteries are mainly used in electronic vehicles (EVs) that are emerging as their fastest-growing application. According to the International Energy Association (IEA), 13% of new cars sold in 2022 were electronic which posed high demand for lithium-ion batteries globally. The demand for recovering cobalt from used batteries by recycling them is increasing worldwide for their employment in electric vehicles. Cobalt and lithium are the key materials for developing batteries for electric vehicles. As demand for battery manufacturing materials is increasing globally, companies are adopting various strategies to increase their share in battery recycling market.

Manganese is one of the key components of both, cobalt- and lithium-based batteries. Cathodes of nickel-manganese-cobalt (NMC) batteries, which are used in electric vehicles consist of 61% manganese. The nickel battery is in high demand in the battery market. Owing to the characteristics of this product, which include high energy density, longer lifetime, and ease of recharging, its utilization is expected to increase significantly over the forecast period.

Application Insights

In terms of revenue, the transportation segment led the industry in 2022 and accounted for the largest share of 68.87% of the overall revenue. Lithium-ion, lead-acid, and nickel metal hydride batteries are extensively used in the transportation industry. Various types of lead-acid batteries such as flooded and valve-regulated types are used as automotive batteries. These batteries are robust, low maintenance, cheap, corrosion-resistant, and durable. Hence, lead-acid batteries hold the largest applications among the rest of the battery chemistries available in the market.

The recycling of li-ion batteries recovers lithium, cobalt, manganese, and nickel, which are used in the manufacturing of new lithium-ion or other types of batteries. Lithium-ion batteries are widely used in electric vehicles owing to the growing awareness about their advantages and increasing fuel prices, mainly in North America, Asia Pacific, and Europe. This is projected to drive automotive battery recycling owing to the presence of a large number of battery manufacturing and recycling companies in the region.

Regional Insights

Asia Pacific is expected to account for the largest revenue share of over 40.37% in 2022. Asia Pacific is also expected to register the fastest CAGR over the forecast period. Countries, such as China, India, Australia, and Japan, are expected to witness high growth rates owing to the rising demand from growing end-use industries, such as automotive, consumer electronics, and industrial. North America occupied a significant revenue share in 2022, with the U.S. being the major contributor to the industry growth. A surge in the usage of li-ion batteries in smartphones to extend their shelf life and enhance their efficiency is expected to drive the growth of the market in North America in the coming years.

Europe is also expected to witness a significant growth rate over the forecast period owing to the presence of key automotive companies, such as Audi, BMW, Mercedes Benz, Jaguar, Aston Martin, Volkswagen, Volvo, Fiat, Ferrari, Lamborghini, and Porsche, in the region is expected to augment the growth of the automotive industry in Europe. This, in turn, is anticipated to drive the demand for recycled batteries in the region over the forecast period.

Key Companies & Market Share Insights

The market is highly competitive and consolidated due to the presence of a large number of well-established players. The dominant trend in the operations of these battery recycling companies includes collaborations, mergers & acquisitions, and expansions, which facilitate competition in the industry. Some of the prominent players in the global battery recycling market include:

• Call2Recycle

• Exide Technologies

• Gravita India Ltd.

• Glencore

• Cirba Solutions

• American Battery Technology Company

• Gopher Resource

• East Penn Manufacturing Co.

• Aqua Metals

Battery Recycling Market Report Scope

Global Battery Recycling Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global battery recycling market report based on chemistry, application, and region:

• Chemistry Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • Lithium-ion

  • Lead Acid

  • Nickel

  • Others

• Application Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • Transportation

  • Consumer Electronics

  • Industrial

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Poland

    • The Netherlands

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • Taiwan

    • India

    • Indonesia

    • Malaysia

    • Thailand

    • Vietnam

    • Australia

  • Central & South America

    • Brazil

    • Argentina

    • Chile

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa