Electric Vehicle Battery Recycling Market

Electric Vehicle Battery Recycling Market Size

             2020                         2024-2032      

Report	Details
Market Size Value	USD 1.6 billion in 2024
Market Size Value	USD 19.3 billion by 2030
CAGR	CAGR of 31.87%
Forecast Period	2024-2032
Base Year	2023
Historic Data	2020

Key Points:

• In 2021, the lithium-ion battery segment accounted for 46% of the total revenue.
• The lead-acid battery segment held a significant market share of over 30% in 2021.
• Electric cars represented 39% of the market share in 2021 based on application.
• Asia Pacific had a substantial market share of over 51% in 2021.

The electric vehicle battery recycling market comprises various companies, including organizations, sole proprietorships, and partnerships, that offer products and services for recycling electric car batteries. The most commonly used batteries in electric vehicles are lithium-ion batteries, and recycling these batteries allows for the recovery of valuable minerals like lithium, manganese, cobalt, and nickel. These minerals are then used in the production of new batteries. Recycling technologies such as mechanical and hydrometallurgical methods have been developed to ensure safety, sustainability, and high recovery rates.

Lead-acid batteries, lithium-ion batteries, and other types of electric vehicle batteries are frequently recycled. Lead-acid batteries are rechargeable batteries known for their low energy-to-volume ratio and high energy-to-weight ratio. They have a longer lifespan, lower energy density, and are cost-effective. The recycling process for these batteries involves separating the lead metal, which can be labor-intensive. Advanced high-power lead-acid batteries are being developed for use in commercial electric cars. Various procedures like pyrometallurgical and hydrometallurgical methods are employed for recycling batteries in different vehicle types, including passenger cars and commercial vehicles. These batteries are used in electric vehicles, energy storage systems, electric buses, and other applications.

The increasing sales of electric vehicles are expected to drive the growth of the electric vehicle battery recycling market in the coming years. Electric vehicles are vehicles that use electricity as their primary or sole source of power, utilizing batteries to drive an electric motor. The batteries used in electric vehicles contain valuable minerals that can be recovered through recycling end-of-life batteries and used to manufacture new batteries for electric vehicles. For instance, the International Energy Agency estimates that global sales of electric vehicles, including fully electric and plug-in hybrid vehicles, will reach 6.6 million units in 2021. Additionally, the total number of electric vehicles on the road worldwide in 2021 was 16.5 million. As a result, the growing sales of electric cars are creating a higher demand for the electric vehicle battery recycling industry.

Factors such as increasing demand for zero-emission vehicles, a limited supply of specific battery pack components, and a growing utilization of recycled products are expected to drive the growth of the electric vehicle battery recycling market. Additionally, the harmonization of regulatory frameworks for electric vehicles in emerging economies will further propel the industry forward.

Key Market Drivers:

Growing environmental concerns: Consumer interest in electric vehicles is rising, leading to increased sales and a larger number of end-of-life electric vehicle batteries that require recycling. As electric vehicle sales expand and batteries from second-life sources are acquired, recycling capacity is projected to increase, driving the development of the electric vehicle battery recycling market.

Emergence of new processes: Innovative procedures for extracting valuable battery materials are gaining traction in the electric vehicle battery recycling industry. Major players in the market are exploring novel techniques to recover precious materials. For example, Ascend Elements and Koura collaborated to develop a cost-effective technique called Hydro-to-Anode, which recovers high-quality graphite from spent batteries. These new processes reduce the need for mining new materials and contribute to the economical recycling of lithium-ion batteries.

Key Market Challenges:

High operating costs: Establishing and operating electric vehicle battery recycling plants incurs significant costs, including collection and transaction expenses. The complexity of the extraction process and uncertainties regarding the efficiency, safety, and remaining lifespan of batteries undergoing refurbishment can hinder the development of large-scale second-life battery recycling. Additionally, a lack of knowledge about electric vehicle battery recycling poses a challenge to the industry's growth.

Key Market Opportunities:

Increase in demand for electric vehicles: The growing demand for electric vehicles presents substantial investment opportunities. Battery production is considered a critical capability for countries aiming to develop electric automobiles, and the establishment of "Gigafactories" for mass-producing electric vehicle batteries is becoming a global trend. Efficient battery manufacturing requires integrated lithium-ion battery recycling. Furthermore, the focus on reducing the use of natural resources in battery production, the adoption of eco-friendly batteries, the expansion of the battery supply chain, and the recovery of developing economies all create opportunities for the electric vehicle battery recycling market to thrive. Advancements in testing methodologies and highly productive systems further contribute to market growth.

Active government involvement in electric vehicles: Governments worldwide are increasing spending on incentives and tax benefits to promote the purchase of electric vehicles. They are also launching initiatives to accelerate the global adoption of electric vehicles. Additionally, global organizations are supporting the electric vehicle battery recycling market, particularly for buses, passenger vehicles, trucks, and light commercial vans. These efforts, coupled with the depletion of nonrenewable metal supplies, contribute to the expansion of the electric vehicle battery recycling market.

Segmental Analysis:

Chemistry Insights:

The sub-segment focused on lithium-based batteries is expected to exhibit the highest growth, reaching $6.2 billion in sales by 2030. This growth is attributed to the favorable characteristics of lithium-based batteries, such as excellent high-temperature performance, high power-to-weight ratio, and low self-discharge. These qualities provide significant environmental advantages over conventional fossil fuel alternatives and contribute to carbon emissions reduction. The increasing adoption of electric cars further drives the demand for lithium-ion automotive batteries.

The lead-acid battery sub-segment is projected to hold a significant market share and generate $3.7 billion in sales during the forecast period. Lead-acid batteries are valued for their heavy-duty performance, cost-effectiveness, and low maintenance requirements. The extensive use of lead-acid batteries in various applications, including backup power supplies, electric scooters, and maritime use, combined with their simplicity, affordability, and energy efficiency, fuel the growth of this sub-segment. Recycling rates for lead-acid batteries are high, with over 97% being recycled in the United States and Europe, and approximately 75% of the lead used in new lead-acid batteries coming from recycled sources. These factors contribute to the steady demand for lead-acid batteries.

End User Insights:

The sub-segment of electric automobiles is expected to witness the fastest expansion, surpassing $5.6 billion by 2030 with a CAGR of 38.5%. Electric vehicles play a crucial role in reducing carbon emissions and addressing environmental concerns. With no exhaust emissions, electric vehicles offer a greener and cleaner alternative to traditional gasoline or diesel vehicles, making them more environmentally friendly.

Geography Insights:

In 2021, Europe dominated the market with the highest revenue share. The European Union's recycling efficiency standards are expected to drive increased battery recycling rates. These regulations mandate specific recovery percentages for different chemistries, with targets set at approximately 75% for nickel-cadmium, 65% for lead-acid, and 50% for other chemistries.

North America has a high recycling rate for used lead-acid batteries, reaching approximately 100%. About 99% of the lead from used batteries is recovered in the U.S. The presence of prominent recyclers like Call2Recycle, Aqua Metals, Enersys, and Battery Solutions, Inc., along with the growing demand for UPS systems and electric vehicles in commercial infrastructure, contributes to the market growth in the region.

Central and South America are expected to experience significant market expansion, driven by increased foreign investment. The region has seen the establishment of large lithium-ion battery storage systems, such as the Cochrane Coal-fired Power Plant in Chile. Additionally, the rise in passenger and commercial vehicle manufacturing in Latin America is anticipated to fuel the demand for lithium batteries.

Asia Pacific is projected to have the highest CAGR of 8.5% during the forecast period. Countries like China, India, and Japan, driven by demand from various end-use sectors, especially the automotive industry, are expected to witness rapid market development.

Key Market Players

• ACCUREC Recycling GmbH (Germany)
• American Manganese Inc. (Canada)
• Battery Solutions (US)
• Li-Cycle Corp. (Canada)
• G & P Batteries (UK)
• Recupyl (France)
• Retriev Technologies (US)
• Australian Battery Recycling Initiative (Australia)
• Snam S.p.A. (Italy)
• Umicore N.V. (Belgium)

Segments Covered in the Report

By Chemistry

• Lithium-ion Battery
• Lead-acid
• Nickel
• Others

By Process

• Pyrometallurgical
• Hydrometallurgical
• Others

By Application

• Electric Cars
• Electric Buses
• Energy Storage Systems
• Others

By End User

• Transportation
• Consumer electronics
• Industrial

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Recent developments

• In March 2022, Retriev Technologies, which is a lithium battery recycling and management firm based in the United States of America, paid an undisclosed sum for Battery Solutions. Retriev Technologies' experience in the battery-centric logistics network, cross-chemistry collection, and end-of-life battery sorting services is projected to grow as a result of this purchase.
• In July 2022, Samsung SDI broke ground on their second battery manufacturing facility in Seremban, Malaysia. In 2024, this factory will begin producing PRiMX 21700 cylindrical batteries. The corporation plans to invest USD 1.4 billion in phases until 2025. The batteries manufactured at the factory will largely be utilised in electric cars (EV), micromobility, and other applications.