Lithium-ion Battery Recycling Market

Lithium-ion Battery Recycling Market

The global lithium-ion battery recycling market is valued at USD 16.2 billion in 2024 and is projected to reach USD 56.9 billion by 2032, growing at 17.0% cagr from 2024 to 2029.

The lithium-ion batteries are sourced from multiple sources including consumer electronics, industrial, marine, power, and other sources. After this, they are recycled to gain valuable metals like nickel and cobalt, back from these batteries. These batteries are then reused by battery manufacturers which strengthen the overall supply chain of batteries. Extraction of metals from lithium-ion batteries through different recycling process reduces dependence on mining for raw materials. The increased availability of metals also contributes towards overall price reduction for lithium-ion batteries. The rise in production of EVs and renewable energy storage systems is generating a substantial volume of end-of-life batteries, thereby fueling the market. Technological advancements in recycling are making the process more efficient and cost effective, thus improving their economics further compared to other methods like direct recovery. The rising awareness regarding sustainability is one of the key drivers of the li-ion battery recycling market.

Attractive Opportunities in the Lithium-Ion Battery Recycling Market

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Lithium-ion Battery Recycling Market Dynamics:

Driver: Increasing demand for electric vehicles

The market for recycled lithium-ion batteries is expected to grow due to the rise in the use of electric vehicles (EVs) and strict government regulations. The automobile industry is shifting toward the use of sustainable, clean fuels. There is a high reliance on oil in the transportation system, with around 70% used for vehicles. This heavy reliance is causing increasing concerns among environmentalists and economists. Increasing environmental awareness is leading to the adoption of electric vehicles. The widespread use of EVs is leading to the rise in the adoption of lithium-ion batteries, essential for an uninterrupted power supply, and this in turn would boost the market for lithium ion battery recycling market.

Restraints: Safety issues related to storage and transportation of spent batteries

Spent batteries hold a residual charge, which leads to the potential of unplanned discharge and may result in injury or damage to property and people. Unless properly labeled, all batteries should be treated as holding a charge and stored with care. Some batteries are small enough to be ingested or swallowed; thus, they should be stored safely out of the reach of children.

Large lithium-based batteries, such as those used for automotive applications, can be mistaken for lead-acid batteries if local battery manufacturers inappropriately label them. If not sorted correctly, these could pose a danger and must be separated from spent lead-acid batteries before storage. Due to these issues, state or national governments regulate the storage and transportation of spent batteries.

Opportunity: Rising adoption of lithium-ion batteries due to declining prices

The declining costs of lithium ion batteries can act as opportunities of growth in the lithium ion battery recycling market.According to a recent industry survey by BloombergNEF, the average cost of a lithium-ion battery pack was reduced to USD 137 per kWh in 2020 compared to the earlier USD 181 per kWh. Due to developments in battery technology over the last decade, battery pack prices have declined 88% since 2010. BloombergNEF projects that battery pack prices are expected to reduce to USD 58 per kWh by 2030 and to USD 44 per kWh by 2035. Tesla Motors Inc. (US) has undertaken developments such as the inception of the Gigafactory-1, which includes the increased production of lithium-ion batteries in 2018 compared to 2013. This is expected to help reduce the prices of lithium-ion batteries.

Challenge: High recycling costs

The lithium-ion battery recycling market is a growing market that is mainly fueled by the increase in the usage of lithium-ion batteries in both, automotive as well as non-automotive sectors. However, this markets’ growth may be hindered by the challenge posed by the high recycling costs of lithium-ion batteries. According to the Centre for Energy Economics (CEE), the lithium recovery rate is only 1–3% globally from all applications. Technologies for lithium extraction from lithium-based batteries are being developed by companies such as Toxco (US) and Umicore (Belgium). However, the high cost of recycling, the unavailability of proper storage systems for collecting spent batteries, and the absence of recycling technologies are some of the challenges for the market players.

Lithium-Ion Battery Recycling Market: Ecosystem

Prominent companies in this market include well-established, and financially stable recyclers of lithium-ion battery recycling market. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Umicore (Belgium), Cirba Solutions (US), Glencore (Switzerland), Contemporary Amperex Technology Co., Ltd. (China), and RecycLiCo Battery Materials Inc. (Canada).

"Consumer electronics segment, by source, is estimated to account for the highest CAGR during the forecast period."

There is a rise in the need for consumer electronics like smartphones, laptops and tablets that use lithium-ion batteries, around the world. As the demand for consumer electronics increases, a large number of used lithium-ion batteries will soon be left useless because their life spans have come to an end. Since both producers and consumers are now realizing how disastrous wrong disposal of these batteries could be on the environment, increased waste offers them an opportunity to recycle them. Moreover, these batteries contain crucial metals like cobalt and lithium, that thus enhances the chances of investment in this market and also makes the consumer electronics segment the leading source of lithium-ion batteries that are to be recycled.

"Lithium Nickel Cobalt Aluminum Oxide (NCA), by battery chemistry, is estimated to account for the highest CAGR during the forecast period."

The CAGR for lithium-ion battery recycling market will arguably be highest in lithium nickel cobalt aluminum oxide (NCA), mainly due its rising usage in performance demanding applications such as electric vehicles (EVs) and energy storage systems. The high energy density of NCA batteries makes them valuable for longer supply periods thus their popularity increases as more people look for long-lasting, efficient batteries. In addition to that, greater emphasis on sustainability and circular economy is prompting investment into technologies capable of recovering valuable materials from NCA batteries through recycling. These metals include nickel, cobalt and lithium which are essential metals as well as help reduce environmental concerns arising from disposal restrictions on these items when these batteries are at end-of-life stage. As a result, NCA has the potential to spur growth in the lithium-ion battery recycling market over time due to increased regulatory pressures and a transition towards green consumerism.

"North America region is estimated to account for the highest CAGR during the forecast period."

North America seems poised to dominate this segment of the lithium-ion battery recycling market with predicted highest compound annual growth rate (CAGR) over the next few years due to escalated acceptance rates for electric automobiles and enhanced technologies involved in recycling. Against this backdrop lies escalating production of lithium-ion powered consumer electronics whose end-of life disposal has been a major concern particularly in large quantities thereby generating excessive battery waste streams from households among others. This has propelled investments into recycling facilities and technologies since sustainable development and circular economy are strongly embraced in this area.

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

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Lithium-ion Battery Recycling Market Players

Umicore (Belgium), Glencore (Switzerland), Cirba Solutions (US), Contemporary Amperex Technology Co., Ltd. (China), and RecycLiCo Battery Materials Inc. (Canada) among others. A total of 27 major players have been covered. These players have adopted product launches, joint ventures, agreements, investments, acquisitions, mergers, and expansions as the major strategies to consolidate their position in the market.

Lithium-ion Battery Recycling Market Scope

This research report categorizes the Lithium-ion battery recycling market based on Source, Battery Chemistry, Recycling Process, Battery Component, and Region.

Based on Source, the Lithium-ion battery recycling market has been segmented as follows:

• Automotive
• Non-Automotive

Based on Battery Chemistry, the Lithium-ion battery recycling market has been segmented as follows:

• Lithium-Nickel Manganese Cobalt (Li-NMC)
• Lithium-Ion Phosphate (LFP)
• Lithium-Manganese Oxide (LMO)
• Lithium-Titanate Oxide (LTO)
• Lithium-Nickel Cobalt Aluminum Oxide (NCA)

Based on Recycling Process, the Lithium-ion battery recycling market has been segmented as follows:

• Hydrometallurgical Process
• Pyrometallurgy Process
• Physical/ Mechanical Process

Based on Battery Component, the Lithium-ion battery recycling market has been segmented as follows:

• Active Material
• Non-Active Material

Based on region, the Lithium-ion battery recycling market has been segmented as follows:

• Asia Pacific
• Europe
• North America

Recent Developments

• In February 2024, Cirba Solutions and EcoPro signed an MoU to improve lithium-ion battery recycling. This collaboration is crucial due to the increasing demand for battery materials and the focus on clean energy production in the US.
• In April 2022, Umicore signed a long-term strategic supply agreement with Automotive Cells Company (ACC) for battery recycling services. At the end of the Umicore recycling process, the recovered metals are delivered to the ACC pilot plant in Nersac, France, in battery-grade quality, allowing them to be re-circulated into producing new Li-ion batteries.
• In August 2021, Glencore entered a long-term strategic partnership with Britishvolt, a pioneer in electric vehicle battery technology and production in the UK. Through this partnership, Glencore supplies Britishvolt with cobalt. This partnership enhanced Glencore's position in the lithium-ion battery recycling market through its product portfolio.

Frequently Asked Questions (FAQ):

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