Lithium-Ion Battery Recycling Market Size - By Chemistry (Lithium Nickel Manganese Cobalt Oxide (NMC), Lithium Iron Phosphate (LFP), Lithium Cobalt Oxide (LCO)), By Process, By Source, & Forecast, 2025 - 2034

Lithium-Ion Battery Recycling Market Size

The global lithium-ion battery recycling market was valued at USD 7.2 billion in 2024 and is estimated to grow at a CAGR of over 20.6% from 2025 to 2034. Rising concern over the environmental impact of lithium-ion batteries due to improper disposal of these batteries with leaks of hazardous materials will augment the process adoption.
 

Increasing demand for critical raw materials such as lithium, cobalt, nickel, and manganese in line with the rising adoption of electric vehicles will foster process penetration as a sustainable source of critical raw materials. In 2023, 1.4 million new EVs were registered in the U.S, more than 40% than the previous year. However, the annual growth rate reflected a deceleration from the previous two years yet demand and growth remained strong.
 

Growing focus of companies to adopt economically viable solutions for the recovery of high-value materials with reduced costs associated with the extraction, refining, and transportation of raw materials will complement the process demand. Additionally, rising market for EVs and energy storage systems will create lucrative opportunities for the recovered materials from recycled batteries to produce new batteries, cutting down costs and improving profit margins for manufacturers leading to process growth.
 

Furthermore, the investments of rowing manufacturers toward securing a more stable and less vulnerable supply chain through acquiring precious metals from depleted batteries will advance industry statistics. In February 2025, Northstar Ventures led the USD 1.7 million investment round for battery recycling firm Lithium Salvage. Essential metals such as lithium, manganese, cobalt, and nickel will be recovered for reuse at the company's proposed lithium-ion battery waste refinery in Sunderland.
 

Lithium-Ion Battery Recycling Market Trends

• Rising implementation of stricter regulations by governments and international bodies concerning the disposal of electronic waste will stimulate the process demand. The European Union has mandated recycling targets for battery producers, and similar regulations are emerging in other regions such as North America and Asia Pacific.
   
• Furthermore, growing companies' investments in developing advanced recycling technology, offering higher recovery rates of valuable materials and making recycling a more economically viable and environmentally friendly option will uplift the business outlook. In January 2025, Marubeni Corporation allocated USD 5 million in third-party shares to Altilium Metals Ltd. The company is actively working on establishing a lithium-ion battery recycling market in the UK.
   
• Rapid progress in recycling methods such as hydrometallurgical and direct recycling, which is focused on cost-effective material retrieval, will facilitate its wider acceptance. Lower costs associated with the recycling process will improve commercial viability and greatly motivate battery producers and recyclers to adopt such processes.
   
• Increasing innovations in LiB recycling, including direct cathode recovery and improved separation techniques, aimed to improve material recovery rates and purity will bolster the process adoption. These advancements improve the efficiency of recycling processes and reduce energy consumption. In July 2024, Novocycle Technologies introduces cutting-edge battery recycling advancements. The company's method outperforms the industry standard of 80% with a graphite recovery rate of 99.9%.
   

Lithium-Ion Battery Recycling Market Analysis

• The industry is segmented into automotive, and non-automotive based on source. The lithium-ion battery recycling battery industry was valued at USD 4.1 billion, USD 5.4 billion and USD 7.2 billion in 2022, 2023 and 2024 respectively.
   
• The automotive segment is projected to hit USD 25.5 billion by 2034 on account of growing transition to EVs as a result of the global push toward reducing carbon emissions. Rising implementation of stringent environmental policies by governments and regulatory bodies across the globe to promote the recycling of Li batteries used in EVs and mandate that automakers ensure the proper disposal or recycling of used batteries will foster the lithium-ion battery recycling market.
   
• The non-automotive segment is set to grow at a CAGR of over 18.5% till 2034. Continued funding to improve the recovery processes of lithium-ion batteries will propel business expansion. In September of 2024, the U.S. Department of Energy invested USD 725 million into six lithium-ion battery recovery projects, two of which were focused on the consumer electronics sector. Under the Bipartisan Infrastructure Law, this financing is a component of a larger USD 3 billion commitment. This is the second funding round to support the domestic battery supply chain.
   
• The skyrocketing usage of laptops, smartphones, tablets, and wearable devices has led to a rise in battery waste. These shifts have heightened the need for recycling to manage spent batteries effectively, which mitigates ecological risks and decreases landfill refuse. Additionally, various governments are adopting stricter regulations for electronic waste, including the EU Battery Regulation and policies on Extended Producer Responsibility. These mandates encourage manufacturers to adopt battery recycling as part of a circular economy.
   

• Based on chemistry, the lithium-ion battery recycling market is segmented into lithium iron phosphate, lithium nickel manganese cobalt oxide, lithium cobalt oxide and others. The lithium nickel manganese cobalt oxide segment holds a market share of 51.1% in 2024, due to the critical materials percentage and economic value of these metals which increases recycling activities while decreasing the need for mining for such metals in an environmentally damaging and costly option.
   
• Increasing demand for batteries offering favorable energy density, long cycle life, and balanced thermal stability, critical for EVs and energy storage applications, will bolster the NMC adoption. Furthermore, companies are coming up with advanced innovations to improve recycling efficiency. In February 2025, Altilium announced recycling lithium iron phosphate batteries in the UK, handling batteries from a major manufacturer of energy storage and EV worldwide. Over 97% of lithium and 99% of graphite are recovered by the company using its exclusive EcoCathode method, guaranteeing effective material reuse.
   
• Furthermore, rising advancements in hydrometallurgical and pyrometallurgical recycling methods to improve efficiency and yield of metal recovery from NMC batteries and make recycling more feasible and cost-effective will bolster the lithium-ion battery recycling market scenario.
   
• The lithium iron phosphate segment is set to grow at a CAGR of over 18% through 2034 due to its cost-effectiveness and long cycle life. Key players’ rising expansion of current facilities to boost recycling efficiency will enhance the business outlook. In January 2025, Ace Green Recycling has a location in Mundra, Gujarat with plans to develop India’s largest battery recycling facility. The company has been actively recycling LFP batteries since 2023 and aims to increasing their capacity to 10,000 tons annually by 2026 in order to meet the growing demands for LFP battery.
   
• The lithium cobalt oxide segment holds a market share of 13.3% in 2024. Rising innovations in hydrometallurgy and direct recycling which seek to improve the recovery of cobalt and lithium from LCO batteries will drive the industry metrics. These changes make it economically viable and sustainable to recycle.
   

• As of 2024, North America holds more than 22.1% of the market share, which is expected to improve further by 2034. The U.S. lithium-ion battery recycling market was valued at USD 500 million, 600 million, and 900 million in 2022, 2023 and 2024 respectively.
   
• In the U.S., increasing stricter environmental regulations are pushing companies to adopt recycling solutions to reduce the environmental footprint of battery disposal leading to market growth. Furthermore, many businesses, especially those related to automotive and electronics, integrate sustainability goals into their business strategies such as recycling old batteries to minimize waste and retrieve precious materials, which in turn will augment the range of products offered.
   
• Companies are getting grants and government support to achieve their goal. In January 2025, American Battery Technology Company secured a USD 144 million grant from the U.S. Department of Energy to aid in developing a new lithium-ion battery recycling facility.
   
• Asia Pacific lithium-ion battery recycling market is anticipated to cross over USD 20.3 billion by 2034. Rapid growth of electric vehicles and consumer electronics driven by government subsidies will boost process adoption. Rising government regulations and policies including the Ministry of Industry and Information Technology of China, mandate EV manufacturers to establish battery recycling networks and ensure extended producer responsibility compliance will create lucrative opportunities for the industry growth.
   
• Major companies and governments increasing investments in advanced battery recycling facilities will foster the industry landscape. China has introduced regulations requiring e-bike manufacturers to take responsibility for battery recycling. With approximately 400 million e-bikes in use—nearly one for every three people—the demand for proper disposal and recycling has grown significantly. These new policies are intended to lessen the environmental impact of wasted batteries while also improving safety and sustainability.
   
• The Europe lithium-ion battery recycling market is estimated to expand more than USD 12.2 billion by 2034. Increasing adoption of stricter regulations such as the Battery Regulation 2023, which sets higher recycling quotas for lithium, cobalt, and nickel, will further boost the industry. Additionally, growing expansion of EVs across Europe boosts the volume of end-of-life lithium-ion batteries, creating a strong demand for efficient recycling solutions.
   

Lithium-Ion Battery Recycling Market Share

• Top three players, including ACE Green Recycling, American Battery Technology Company and Attero Recycling account for nearly 30.2% of the lithium-ion battery recycling industry. These businesses are focusing on expanding their recycling capacities to meet growing demand. This expanding capacity will allow the companies to process larger volumes of end-of-life batteries, especially from electric vehicles and consumer electronics, while meeting increasing recycling mandates.
   
• Furthermore, businesses are working together and investing in cutting-edge recycling techniques including hydrometallurgical and direct recycling, which are more ecologically friendly and efficient than conventional pyrometallurgical techniques. In January 2025, Africa’s leading EV company has partnered with Ace as its exclusive global recycling provider to enhance sustainable operations.
   
• Companies are using direct recycling, pyrometallurgy, and hydrometallurgy to increase recovery efficiency. The goal of innovations is to minimize the negative effects on the environment while optimizing the extraction of nickel, cobalt, and lithium. In addition, businesses are complying with laws including the U.S. Inflation Reduction Act and the EU Battery Regulation in order to receive rewards and fulfill recycling requirements.
   

Lithium-Ion Battery Recycling Market Companies

• American Battery Technology Company, a growing company in lithium-ion battery recycling industry, has reported cash utilized in operations amounted to USD 16.9 million for June 2024, up from USD 13.4 million in the previous fiscal year ending June 30, 2023. The company's second lithium-ion battery recycling facility will be developed with the help of a highly competitive USD 150 million federal grant.
   
• BatX Energies, a privately held company with estimated revenue of 2.8 million in 2024. In January 2025, BatX Energies, opened a Critical Minerals Extraction Plant in Uttar Pradesh. This plant is a significant step towards the recovery of lithium, cobalt, nickel, and manganese from spent lithium-ion batteries.
   

Lithium-Ion Battery Recycling Market Companies

Eminent players operating in the lithium-ion battery recycling industry are:

• 3R Recycler
• ACE Green Recycling
• American Battery Technology Company
• Attero Recycling
• BatX Energies
• Cirbra Solution
• Ganfeng Lithium
• Glencore
• Li-Cycle Holdings Corporation
• Lohum Cleantech
• Neometals
• RecycLiCo Battery Material
• Redwood Materials
• SK TES
• Umicore
   

Lithium-Ion Battery Recycling Industry News:

• In September 2024, American Battery Technology Company, a leader in the production of battery materials and lithium-ion battery recycling, has won a bid of 150 Billion dollars from the Department of Energy in the United States. The funding will be used for the development of a new recycling plant to enhance the the processes of recovering vital minerals used in batteries.
• In February 2024, Omega Seiki Private Ltd (OSPL) has entered into an agreement with Attero to recycle lithium-ion batteries. More than 100MWh of batteries will be recycled in local, ASEAN, and African markets over the course of the next three to four years.
   
• In October 2023, American Battery Technology Company has begun operating its first commercial lithium-ion battery recycling plant in Nevada. This facility, which covers an area of 137,000 square feet, has been designed to process 20,000 metric tons of battery feedstock per year. The plant will be brought online in two phases. The first phase focuses on the pyrometallurgical recycling of the feedstock materials to aluminum, steel, copper, lithium, black mass and other intermediate materials.
   

This lithium-ion battery recycling market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & Billion Tons” from 2021 to 2032, for the following segments:

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Market, By Chemistry

• Lithium Nickel Manganese Cobalt Oxide (NMC)
• Lithium Iron Phosphate (LFP)
• Lithium Cobalt Oxide (LCO)
• Others

Market, By Process

• Pyrometallurgical
• Hydrometallurgical
• Physical/Mechanical

Market, By Source

• Automotive
• Non-Automotive

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • France
  • Belgium
  • Switzerland
  • Germany
• Asia Pacific
  • China
  • South Korea
  • Japan
• Rest of World