by Electric vehicle battery recycling involves reusing end-of-life and spent batteries from electric vehicles to recover materials such as lithium, cobalt, nickel and manganese. With growing adoption of electric vehicles globally, the demand for recycling spent lithium-ion batteries is also increasing to ensure sustainable materials supply and reduce environmental footprint.
The global Electric Vehicle Battery Recycling Market is estimated to be valued at US$ 2.4 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
Growing adoption of electric vehicles owing to stringent emission regulations around the world has triggered the need for recycling spent lithium-ion batteries. As the sales of electric vehicles continue to surge, millions of spent lithium-ion batteries from these vehicles will need to be recycled in the coming years. Recycling helps recover critical materials like lithium, cobalt and nickel in an environment-friendly manner and reduces dependency on mining activities. It is estimated that global stock of lithium-ion batteries will exceed 1.5 million tons by 2030, presenting a huge opportunity for battery recycling market. Novel recycling techniques are being developed and deployed to recover higher amount of materials from end-of-life batteries in a cost-effective and sustainable way. This is expected to further drive the electric vehicle battery recycling market during the forecast period.
SWOT Analysis
Strength: Electric vehicle battery recycling can help extract critical materials like lithium, cobalt, nickel and graphite which are important to manufacturing new batteries. This ensures steady supply of raw materials.
Weakness: Setting up battery recycling infrastructure requires huge investments and establishing standardized collection methods is challenging. Current recycling processes are also not 100% effective in recovering all materials.
Opportunity: Growing electric vehicle sales will increase discarded batteries over time presenting a huge opportunity for recyclers. Advancements in recycling technologies can help recover higher amounts of critical materials at lower costs.
Threats: Countries may impose restrictions on export of used batteries to ensure domestic recycling. Competing extractive industries for raw materials can impact the profitability of battery recycling operations.
Key Takeaways
The global Electric Vehicle Battery Recycling Market Demand is expected to witness high growth over the forecast period between 2023 and 2030 supported by rising electric vehicle sales. The global Electric Vehicle Battery Recycling Market is estimated to be valued at US$ 2.4 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023-2030.
Regional analysis: Asia Pacific currently dominates the market led by countries like China, Japan and South Korea. This is due to presence of large e-mobility companies and battery manufacturers in the region. Europe is another major market for recycling owing to stringent environmental regulations regarding end-of-life batteries.
Key players operating in the electric vehicle battery recycling 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. As more batteries need recycling in the coming years, these companies are strategically investing in collection infrastructure and improving processing technologies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
