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, Regional Outlook & Global Forecast, 2024 – 2032

Lithium-Ion Battery Recycling Market Size

The global lithium-ion battery recycling market was valued at USD 5.4 Billion in 2023 and is estimated to grow at a CAGR of 20.6% from 2024 to 2032. It refers to the process of recovering valuable materials such as lithium, cobalt, nickel, and other metals from used or end-of-life lithium-ion batteries. These batteries are commonly found in consumer electronics, electric vehicles (EVs), and renewable energy storage systems. The recycling process involves several stages, including the collection and sorting of batteries, disassembly, and extraction of valuable elements through physical, hydrometallurgical, or pyrometallurgical processes.
 

Growing concern over the environmental impact of lithium-ion batteries owing to improper disposal of these batteries with leaks of hazardous materials which will augment the process adoption. Increasing demand for critical raw materials including lithium, cobalt, nickel, and manganese in line with the rising adoption of electric vehicles will foster the process penetration. Furthermore, rising manufacturers investments in recovering valuable metals from used batteries to secure a more stable and less vulnerable supply chain will propel the industry statistics.
 

Shifting 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, cutting down costs and improving profit margins for manufacturers leading to process growth.
 

Lithium-Ion Battery Recycling Market Trends

Rising implementation of strict regulations by governments and international bodies concerning the disposal of electronic waste will stimulate the process demand. For instance, the European Union mandated recycling targets for battery producers, with similar regulations emerging in other regions including North America and Asia Pacific. Furthermore, growing investments in developing advanced recycling technology, offering high recovery rates of valuable materials and making recycling a more economically viable and environmentally friendly option will drive the business outlook.
 

Lithium-Ion Battery Recycling Market Analysis

Based on source, the automotive segment is projected to surpass USD 17 billion by 2032, owing to growing transition to electric vehicles (EVs) because of global push towards reducing the 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 the EVs and mandate that automakers ensure proper disposal or recycling of used batteries will foster the process demand. Presence of rich valuable materials including lithium, cobalt, nickel, and manganese will propel the process adoption to recover and reuse them in the new batteries, reducing the dependency on mining the virgin resources.
 

Based on chemistry, the lithium nickel manganese cobalt oxide (NMC) segment is set to grow at a CAGR of over 19.5% through 2032, owing to its high percentage of critical materials and economic value of these metals and reducing reliance on expensive and environmentally harmful mining practices. Increasing demand for batteries offering favorable energy density, long cycle life, and balanced thermal stability, critical for EVs and energy storage applications will augment the NMC adoption. Moreover, 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 industry scenario.
 

Asia Pacific lithium-ion battery recycling market is anticipated to cross over USD 14 billion by 2032. Rapid growth of electric vehicles and consumer electronics driven by government subsidies will boost the industry landscape. Rising government regulations and policies including the Ministry of Industry and Information Technology (MIIT) of China, mandate the EV manufacturers to establish battery recycling networks and ensure extended producer responsibility (EPR) compliance, which will create lucrative opportunities for industry growth. Growing reliance on imported raw materials such as cobalt, lithium, and nickel to meet its growing battery manufacturing demands will foster the process penetration to reduce the dependency on mining these critical resources.
 

In the U.S., increasing environmental regulations are pushing the companies to adopt recycling solutions to reduce the environmental footprint of battery disposal leading to market growth. Furthermore, many corporations, particularly in the automotive and electronics sectors, are incorporating sustainability goals into their business models including recycling used batteries to reduce waste and recover valuable resources will complement the product growth.
 

Lithium-Ion Battery Recycling Market Share

Eminent market players 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 (EVs) and consumer electronics, while meeting increasing recycling mandates. Furthermore, companies are investing in advanced recycling processes such as hydrometallurgical and direct recycling methods, which are more efficient and environmentally friendly compared to traditional pyrometallurgical methods.
 

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
• Cirba 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 key player in battery materials manufacturing and lithium-ion battery recycling, has secured a USD150 Billion grant from the U.S. Department of Energy. This funding will support the construction of a new recycling facility aimed at advancing the recovery of critical battery minerals.
   
• In October 2023, American Battery Technology Company has commenced operations at its inaugural commercial-scale lithium-ion battery recycling facility located in McCarran, Nevada. Spanning 137,000 square feet, the facility is set to process an annual capacity of 20,000 metric tons of battery feedstock. The facility's operations will roll out in two distinct phases. The subsequent phase will see these intermediate materials refined into battery-grade lithium hydroxide, with the black mass being transformed into battery-grade nickel, cobalt, and manganese products.
   

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 & 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