by The electric vehicle battery recycling market involves recycling processes that aim to reduce waste by recovering materials from end-of-life or discarded electric vehicle batteries. Lithium-ion batteries used in electric vehicles are recycled to recover valuable and scarce metals like lithium, nickel, and cobalt. Recycling helps conserve natural resources and prevents the release of toxic chemicals from landfills and incinerators.
The global Electric Vehicle Battery Recycling Market is estimated to be valued at US$ 2.04 Bn In 2023 and is expected to exhibit a CAGR Of 6.3% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing environmental concerns over electric vehicle battery disposal: With rising adoption of electric vehicles worldwide, disposal of aging electric vehicle batteries has emerged as a major challenge. Researchers warn that spent lithium-ion batteries, if not recycled properly, can leach toxic chemicals into the environment over time in landfills. Battery recycling helps address this issue by recovering valuable resources from spent batteries in an environmentally-conscious manner. This growing environmental concern is expected to drive the electric vehicle battery recycling market.
Expanded battery recycling infrastructure: Major automakers and battery manufacturers are investing in developing a robust battery recycling infrastructure to efficiently collect and recycle retired electric vehicle batteries. For instance, Tesla has partnered with several companies to recycle battery packs from its electric vehicles. Similarly, battery makers like LG Chem and Contemporary Amperex Technology Co. Limited are collaborating with recyclers to establish closed-loop recycling networks. Expansion of the recycling infrastructure is expected to boost the electric vehicle battery recycling market.
Segment Analysis
The Electric Vehicle Battery Recycling Market can be segmented on the basis of battery type into lithium-ion batteries, nickel-metal hydride batteries, and lead-acid batteries. Lithium-ion batteries dominate the market currently with a share of over 80% as they are used widely in electric vehicles due to their high energy density and rechargeability. Recovering valuable materials like cobalt, lithium, nickel, and manganese from lithium-ion batteries is economically attractive given the rising EV battery demand.
PEST Analysis
Political: Governments across regions are framing favorable regulations to boost EV adoption and battery recycling. Subsidies and tax credits are encouraging recycling of exhausted EV batteries.
Economic: As electric vehicles gain mainstream acceptance, millions of spent batteries will need recycling in the coming decades. Recovering battery materials can offset costs and boost profitability. Materials recovered also meet critical raw material demands.
Social: Growing environmental awareness is driving preferences for sustainable electric transport solutions. Consumers expect responsible battery recycling practices from automakers to promote a circular economy.
Technological: Advancements are underway in hydrometallurgy and pyrometallurgy techniques to improve recycling yields. Robotics and automation are increasing sorting and dismantling efficiencies. Technologies like direct recycling can extract battery materials without separating them.
Key Takeaways
The Global Electric Vehicle Battery Recycling Market Demand is expected to witness high growth at a CAGR of 6.3% during the forecast period of 2023 to 2030. The market size for 2024 is estimated to be US$ 2.04 Bn.
Regional analysis:
Europe dominates currently with over 40% share due to stringent environmental norms and presence of major automakers. China and Japan are other major markets given their leadership in EV production.
Key players:
Key players operating in the electric vehicle battery recycling market are Synutra Inc., Darling Ingredients Inc., Archer Daniels Midland Company, BASF SE, Koninklijke DSM NV, Foodchem International Corporation, Glanbia PLC, Holista, Colltech Ltd, ESM Technologies LLC, Bergstorm Nutrition Inc., and Gelita AG.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
