EV Battery Recycling Market worth $23.72 billion by 2035| MarketsandMarkets
DELRAY BEACH, Fla., Feb. 14, 2025 /PRNewswire/ -- EV Battery Recycling Market by value, is estimated to be USD 0.54 Billion in 2024 and is projected to reach USD 23.72 Billion by 2035, at a CAGR of 40.9% from 2024 to 2035, according to a new report by MarketsandMarkets. The EV battery recycling market is driven by the dual objectives of reducing environmental impact and addressing resource scarcity, particularly for lithium, cobalt, and nickel. Recycled materials are often less expensive than newly mined ones due to lower extraction and transportation costs. From a commercial standpoint, localized and alternate supply chains for EV battery recycled materials are crucial for reducing costs, ensuring sustainability, and mitigating supply chain disruptions. Governments worldwide are implementing stringent regulations to minimize battery waste and encourage circular economies, fueling the recycling industry's growth. For instance, the Council of the European Union adopted new regulations to improve recycling rates and reduce raw material imports. These regulations place more responsibility on battery manufacturers. They must disclose the carbon footprint of their batteries and meet stricter recycling targets. According to International review on Recycling Ecosystem of Electric Vehicle Batteries, By the end of 2025, manufacturers must recycle at least 65% of a battery's total weight, increasing to 70% by 2030. Such regulation will boost the growth of EV Battery recycling market.
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"Extraction of lithium will grow at higher CAGR during the forecast period"
Lithium is poised to experience a higher CAGR in the EV battery recycling market due to intensified initiatives by recyclers and OEMs to recover this critical material. The rising demand for lithium-ion batteries, driven by the global shift toward EVs, underscores the importance of securing a stable lithium supply. OEMs are increasingly integrating closed-loop systems and collaborating with recyclers to efficiently extract lithium from end-of-life batteries, ensuring resource sustainability while reducing reliance on mining. For instance, In September 2024, BMW of North America partnered with Redwood Materials to recycle lithium-ion batteries from its electric and hybrid vehicles, including BMW, Mini, and Rolls-Royce brands. Dealerships will send old batteries to Redwood's facilities in Nevada and South Carolina for processing, where key materials like cathodes and anodes will be recovered with a 95-98% efficiency rate for reuse in new batteries. Such developments towards recycling of EV batteries will boost the market growth in the forecast period.
"Recycling of LFP batteries will grow at higher rate during the forecast period"
The recycling of Lithium Iron Phosphate (LFP) batteries is expected to grow at a higher CAGR during the forecast period in the electric vehicle battery recycling market. This growth can be attributed to several factors, including the increasing adoption of LFP batteries in electric vehicles due to their cost-effectiveness, safety, and longer life cycle compared to other lithium-based chemistries. Recycling companies are focusing on efficient extraction and recovery of valuable materials like lithium, iron, and phosphate from spent LFP batteries, using various methods such as mechanical processing, pyrometallurgical techniques, and hydrometallurgical processes. These approaches allow recyclers to recover key components and reduce waste, lowering the environmental impact of battery disposal. The potential monetary value generated from recycling a ton of EV battery material could reach USD 610. Further, in January 2025, the research organization TNO (Netherlands) and the company SusPhos (Netherlands) plan to develop an economically viable recycling process for LFP batteries. The aim is to recover critical materials such as lithium and phosphate in a profitable process. This market trend is expected to contribute to the overall growth of the EV battery recycling sector.
"Europe is expected to be the fastest growing market during the forecast"
The European EV battery recycling market is experiencing significant growth, driven by stringent regulations promoting circular economy principles, such as the EU Battery Regulation, which mandates the recycling of critical materials like lithium, nickel, and cobalt. The EU Battery Regulation (2023/1542) began to take effect on February 18, 2024, with some requirements effect on August 18, 2024. The regulation includes new requirements for EV batteries, as well as other types of batteries, and aims to reduce the environmental impact of batteries and improve their safety. Further, Increasing EV adoption, with an accelerated shift towards electrification, has generated a rising volume of end-of-life batteries and production scrap, further fueling the demand for efficient recycling solutions. Europe's focus on reducing dependency on raw material imports and fostering local supply chains has encouraged the establishment of advanced recycling facilities by key players such as Umicore, Fortum, and BASF. Innovations in hydrometallurgical and pyrometallurgical processes, aimed at maximizing recovery efficiency while minimizing environmental impact, are shaping the market. Collaborations between automakers and recycling firms, alongside government incentives and funding for R&D, are bolstering capacity expansion and technological advancements. With the increasing emphasis on sustainability, resource efficiency, and energy transition, the European EV battery recycling market is poised for rapid growth, establishing itself as a critical component of the region's green mobility ecosystem
Key Market Players EV Battery Recycling Industry:
Prominent players in the EV Battery Recycling Companies include Contemporary Amperex Technology Co., Limited. (China), GEM Co., Ltd. (China), Umicore (Belgium), Glencore (Switzerland), Fortum (Finland). These companies offer extensive solutions for the EV battery recycling. These companies are vital in their domestic regions and explore geographic diversification alternatives to grow their businesses.
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This report provides insights on:
- Analysis of key drivers (Creation of stable supply chains for EV battery materials, rising government initiative related to lithium-ion battery recycling, Rising demand for recycled products and materials), restraints (Limited Collection and Recycling Infrastructure), opportunities (Creation of Uniform Recycling Procedures, Advancements in Artificial Intelligence in Battery Recycling), and challenges (Complexity of battery chemistries).
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, in the EV battery recycling market.
- Market Development: Comprehensive information about lucrative markets – the report analyses the EV battery recycling market across varied regions.
- Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the EV battery recycling market.
- Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Contemporary Amperex Technology Co., Limited. (China), GEM Co., Ltd. (China), Umicore (Belgium), Glencore (Switzerland), Fortum (Finland) and among others in the EV battery recycling market Page 25 of 34 strategies. The report also helps stakeholders understand the pulse of the adjacent reports such EV Battery Market, EV market and provides them with information on key market drivers, restraints, challenges, and opportunities.
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