The global battery recycling market size was estimated at USD 1.83 billion in 2023 and is projected to reach USD 17.08 billion by 2030, growing at a CAGR of 37.6% from 2024 to 2030. The industry is expected to grow rapidly during the forecast period owing to 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 globally are implementing regulations to promote the recycling of batteries and reduce environmental impact, which is expected to boost industry growth.
The U.S. emerged as the largest market in North America in 2023. 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 presence of leading industry players are expected to drive demand for batteries in the country over the forecast period. Responsible Battery Recycling Act of 2022 California instructs each battery retailer in the state to have a system for 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.
Key Market Trends & Insights
• Asia Pacific is expected to account for the largest revenue share of over 40.0% in 2023. 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 rising demand from growing end-use industries, such as automotive, consumer electronics, and industrial.
• North America occupied a significant revenue share in 2023, with the U.S. being a major contributor to industry growth. A surge in usage of li-ion batteries in smartphones to extend their shelf life and enhance their efficiency is expected to drive growth of the market in North America in the coming years.
• Based on chemistry, the lead-acid segment dominated the market for a revenue share of more than 84.0% in 2023.Lead-acid batteries are suitable for recycling compared to other batteries owing to an extensive usage of reusable lead and plastics for manufacturing. Battery recycling companies collect used batteries from consumers for recycling and reusing purposes. Used batteries are first broken into pieces. Plastics are sent for recycling into a plastic recycler and then given shape by process of extrusion.
• Based on application, the transportation segment dominated the market for the largest revenue share of more than 73.0% in 2023.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.
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Market Size & Forecast
• 2023 Market Size: USD 1.83 Billion
• 2030 Projected Market Size: USD 17.08 Billion
• CAGR (2024-2030): 37.6%
• Asia Pacific: Largest market in 2023
Key Companies & Market Share Insights
Market is highly competitive and consolidated due to the presence of a large number of well-established players. Dominant trend in operations of these battery recycling companies includes collaborations, mergers & acquisitions, and expansions, which facilitate competition in the industry.
In November 2023, Redwood Materials announced their expansion for battery recycling in line with the increasing demand for recycling of electric vehicle batteries.
Key Players
• Call2Recycle
• Exide Technologies
• Gravita India Ltd.
• Glencore
• Cirba Solutions
• American Battery Technology Company
• Gopher Resource
• East Penn Manufacturing Co.
• Aqua Metals
Conclusion
The battery recycling market is poised for significant expansion, driven by increasing battery demand from the EV sector and supportive regulatory frameworks. As environmental concerns continue to rise, the emphasis on recycling and sustainable practices will play a crucial role in shaping the industry's future. With major regions like North America and Asia Pacific leading the charge, the market is likely to see innovative solutions and technologies emerge to meet the growing challenges and opportunities in battery recycling.
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