May 26, 2024
Electric Vehicle Battery Recycling Market

Electric Vehicle Battery Recycling Market Is Driven By Growing Adoption Of Evs

The electric vehicle battery recycling market has seen significant growth in recent years due to the growing adoption of electric vehicles globally. Lithium-ion batteries are widely used in electric vehicles and other electronics due to their high energy density and rechargeability. However, these batteries have a limited lifespan and need replacement after 5-10 years. Recycling these spent batteries helps recover valuable materials like lithium, cobalt, nickel, and manganese that can be reused in new batteries. It is estimated that over 100GWh of lithium-ion batteries will require recycling by 2030. The global electric vehicle battery recycling market provides a sustainable solution for battery waste management and recovers critical materials needed for new battery manufacturing.

The global Electric Vehicle Battery Recycling Market is estimated to be valued at US$ 2.77 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The major trend in the Global Electric Vehicle Battery Recycling Market Size is the development of advanced recycling technologies to recover high-purity materials from lithium-ion batteries. New hydrometallurgical and physical processes use fewer chemicals and less energy during recycling. They can recover battery materials like cobalt, lithium, nickel, and manganese at purity levels over 95%, making them suitable for reuse in new battery manufacturing. Advanced sorting and detecting equipment also helps separate different battery components more efficiently. The growing focus on developing a circular battery economy is expected to boost investment in recycling technology R&D and drive higher recovery rates of critical materials.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the electric vehicle battery recycling market requires large investments and established supply chain to collect used batteries effectively.

Bargaining power of buyers: The bargaining power of buyers is high as there are growing number of OEMs and battery recyclers in the market offering recycled materials. Buyers can negotiate on price and quality.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to presence of several collectors of used batteries. However, volume and quality of collected materials impacts operations of battery recyclers.

Threat of new substitutes: Substitution threat is low as there are no direct alternatives for recycling electric vehicle batteries currently.

Competitive rivalry: The competitive rivalry is high among existing battery recyclers to gain higher market share through expansion, joint ventures and mergers & acquisitions.

Key Takeaways

The global electric vehicle battery recycling market is expected to witness high growth over the forecast period supported by rising sales of electric vehicles worldwide. The global Electric Vehicle Battery Recycling Market is estimated to be valued at US$ 2.77 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024-2031.

Asia Pacific currently dominates the market and is expected to maintain its lead owing to presence of major EV manufacturers in China, Japan and South Korea. Furthermore, China has formulated policies to phase out manufacturing and sales of traditional fuel vehicles boosting demand for recycling of battery waste.

Key players operating in the electric vehicle battery recycling market include Synutra Inc., Darling Ingredients Inc., Archer Daniels Midland Company, BASF SE, Koninklijke DSM NV. These players are focusing on collaborations with OEMs and increasing recycling capacity through expansion and new facility set ups to gain leadership position in the market. recycling market are focusing on expanding presence in high growth regions through partnerships, mergers and acquisitions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it