Global Battery Recycling Market By Chemistry (Lead-Acid Based Battery, Lithium-Ion Based Battery, and Other Battery Types), By Source (Automotive Batteries, Industrial Batteries, and Other Sources), By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global battery recycling market was valued at USD 11 billion and it is expected to reach USD 23.7 billion by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 8.2%.

Global battery recycling can be described as the collection of lithium-ion batteries with the help of multiple sources, including industrial, consumer & electronics appliances, automotive, and the recovery of metals and elements with the help of recycling. Selling these elements and recovered metals goes for further recycling or second-use applications.

Key Takeaways

• Market Growth: The global battery recycling market experienced remarkable expansion during 2023-2032, reaching USD 11 billion and recording an 8.2% compound annual growth rate over this time. Projections predict an even larger surge to USD 23.7 billion. To support its remarkable development is its outstanding compound annual growth rate which averaged 8.2% per annum from 2023-2032.
• Based on Chemistry: As of 2022, lead-acid batteries had the largest market share based on their components and chemical makeup. Recyclers found these battery types particularly lucrative given their less costly prices relative to others as well as being the first commercial energy storage models used commercially.
• Sources: indicate that industrial battery sales will account for 53% of market shares over time, as per a report published.
• By Application: automotive was the industry with the highest market share when measured by application; this can be explained by the increased use of electric and hybrid automobiles as well as efforts made towards encouraging electrification across all auto business operations.
• Drivers: Battery recycling market growth can be attributed to several factors, including rising concerns over environmental sustainability, an increasing need for rare and precious metals, as well as government regulations mandating responsible battery disposal practices.
• Obstacles to Market Entry: Market challenges include high initial startup costs for recycling facilities, inadequate collection infrastructure, and the logistics involved with collecting and transporting used batteries.
• Opportunities in Battery Recycling Market: Future growth in this market will be driven by technological innovations in recycling processes, increasing investments in sustainable practices, and the global shift toward circular economies.
• Trends: Emergent market trends include improved recycling methods and integration of recycled material into battery production; an emphasis on environmental responsibility within the electric vehicle industry is also rising rapidly.
• Regional Dominance: Asia Pacific holds a 42% market share. Asia Pacific was predicted to be in first position over this forecast period.
• Key Players in the Battery Recycling Market: G&P Batteries, Retriev Technologies Inc., Exide Technologies, and Battery Solutions LLC are among the key companies driving growth and sustainability initiatives within this sector. They all play an essential part in shaping its direction.

Drivers

Batteries are largely used across multiple segments like mining operations, electronic and electrical gadgets, energy storage, submarine & marine applications, electric vehicles, automobiles, etc., which generates millions of tons of waste. This eventually increases the growth of the battery recycling market. The increasing impact of dumping of batteries emphasizes the global countries to regulate recycling policies to reduce environmental threats that drive the battery recycling market.

The global battery recycling market is anticipated to grow a significant demand due to strict rules and regulations imposed by the government, public awareness, and environmental safety. With the growing populations, demand for primary materials like lithium and lead is accounted to increase during the forecast period.

The recycling of used materials is crucial for preserving natural resources and decreasing environmental impact. Lead acid batteries are the most recycled batteries across the globe.

Restraints

Batteries consist of toxic and hazardous metal, which requires trained staff and technical methods, or they can explode and cause loss of life and the environment, which restrains the recycling market. Battery recycling consists of high operational costs, which are restraining the global battery recycling market.

Based on Chemistry

Based on chemistry, the lead-acid battery type held the major market share in 2022. The lead-acid segment is more profitable in terms of recycling due to its low cost than the other battery types and its adoption as it is the first commercial battery in energy storage applications.

The lithium-ion battery recycling is expected to record significant demand during the forecast period. Lithium-ion batteries are largely used in e-vehicles. The rising transportation and automotive industries, with the rising use of these batteries in multiple applications, are the factors expected to increase the consumption of recycled batteries during the forecast period.

Based on Source

According to the source, the industrial batteries category is expected to have the biggest market share throughout the projection period, at 53%. This is because there are many applications for industrial batteries, ranging from the integration of renewable energy to UPS systems and forklift batteries. Batteries are so frequently gathered from industrial sources for recycling.

Based on Application

Based on application, the automotive segment accounted for the largest market share in 2022. This is registered to the rising adoption of hybrid & electric vehicles and rising efforts to promote electrification across the automotive industry. The rapid growth of the EV industry across developing countries is expected to fuel market growth in the forecast period.

The growing disposable income, favorable electric infrastructure growth, a renewed desire for electric cars and other vehicles, and continuous technological innovations are the factors expected to drive demand for battery-powered vehicles in the future.

Multiple government regulatory agencies have imposed policies to support the e-vehicle market. Environmental hazards such as global warming, rising pollution, energy depletion, and biological hazards are expected to support a change in consumers’ preference towards e-vehicles, thereby accelerating the demand for recycled batteries.

Key Market Segments

Based on Chemistry

• Lead-Acid Based Battery
• Lithium-Ion Based Battery
• Nickel-Based Battery
• Other Battery Types

Based on Source

• Automotive Batteries
• Industrial Batteries
• Electronic Appliance Batteries
• Other Sources

Based on Application

• Automotive
• Consumer Electronics
• Energy Storage
• Other Applications

Opportunity

The production of raw materials through the method of recycling is an energy-efficient process as compared to the production of lead by mining. The energy-saving process can help in carbon emissions reduction. These factors are expected to increase the recycling of batteries during the forecast period.

Due to the growing population, the consumption of resources such as lithium and lead is expected to grow during the forecast period. This leads to the requirement for recycled materials to reduce the environmental footprint and conserve natural resources. Lead acid batteries are the most recycled product and dominate the market with a high recycling rate over the globe.

Trends

Lithium-ion batteries are witnessing huge popularity, especially in the renewable power industry and automotive industries. The lifecycle of lithium batteries is approximately 3-4 years, after which the battery users can provide for recycling and replacement.

Regional Analysis

Asia Pacific holds the major share of approximately 42% market share. It accounted for the industry’s dominating region during the forecast period. The changing government policy measures imposed by developing nations in the Asia Pacific region to introduce e-vehicles is an essential segment that is driving the global battery recycling market growth.

In addition, the rising popularity of electric vehicles creates significant market opportunities for the manufacturing of multiple types of battery management technology that regulates voltage and rechargeable batteries. Also, a rising population of concerned people is driving increasing demand for electric vehicles in this region.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

In recent years, the battery recycling market has become increasingly competitive due to the increasing demand for sustainable and eco-friendly solutions. Major players in this space include Umicore, Li-Cycle, Retriev Technologies, Battery Solutions LLC, and others.

These companies provide various services like collection, sorting, and recycling of different types of batteries such as lithium-ion batteries, lead-acid batteries, and nickel-cadmium batteries; plus they cater their services to various industries like automotive electronics or energy storage systems.

Technological advancements, regulatory frameworks, and growing environmental sustainability awareness are fueling the competition in this market. As demand for battery recycling continues to increase, competition in this space is expected to intensify over the coming years.

Market Key Players

• G&P Batteries
• Retriev Technologies Inc.
• Exide Technologies
• Battery Solutions LLC
• EnerSys
• Umicore N.V.
• LI-CYCLE CORP.
• Call2Recycle Inc.
• uRecycle
• East Penn Manufacturing Company
• American Manganese Inc.
• BASF
• Johnson Matthey
• Other Key Players

Recent Developments

• In May 2022, Li-Cycle Corp. started their Gilbert, Arizona facility, which is expected to be able to process up to 10000 metric tons of manufacturing scrap and infinite batteries per year. Li-Cycle corp.’s innovative battery recycling facility bolsters Arizona’s strong EV supply chain and sends a signal that Arizona is for electric batteries.
• January 2022, Electra, the battery materials manufacturing company, entered into an agreement with Japanese firm Marubeni to get the black mass derived from the Li-ion battery recycling operations. Electra intends to take advantage of Marubeni’s huge network of battery cell recyclers worldwide to secure an efficient source of black mass. Marubeni’s battery recycling operation is expected to be commissioned in 2023.

Report Scope