Lithium-Ion Battery Recycling Market Analysis

Lithium-Ion Battery Recycling Market Analysis

To get key market trends

  Download Free Sample

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.