Lithium-Ion Battery Recycling Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025

Description

The global lithium-ion battery recycling market was valued at USD 17.5 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 16.5%, reaching USD 58.8 billion by 2032. This robust growth is driven by factors such as the limited supply of lithium, rising demand for electric vehicles (EVs), and increasing government support in the form of subsidies for electric mobility. The expanding adoption of electric cars, which saw a 35% year-on-year increase in 2023, has increased the need for lithium-ion batteries, while concurrently emphasizing the need for recycling as a sustainable solution to supply raw materials. With over 300 million EVs projected to be on the roads by 2030, the demand for recycled lithium-ion batteries is anticipated to continue growing.

Additionally, rising investments in the electrical and electronics sectors, particularly in emerging countries like China, India, and Brazil, are driving the demand for recycled lithium-ion batteries, providing a substantial opportunity for growth. While recycling processes have made significant strides, environmental concerns regarding battery disposal and the negative impact of plastic incineration continue to pose challenges to the market.

Key Insights

Limited Lithium Supply Boosting Recycling Demand: The limited availability of lithium, essential for manufacturing lithium-ion batteries, is a major factor pushing the growth of the battery recycling market. Mining lithium has significant environmental consequences, including water contamination, making recycling a more sustainable option. For example, BMW partnered with Redwood Materials to recycle batteries from electric vehicles in the U.S., ensuring the sustainability of their supply chain by reducing reliance on virgin lithium.

Rising Electric Vehicle Demand: The booming electric vehicle market is a key driver for the recycling of lithium-ion batteries. The growing adoption of electric vehicles (EVs) globally is increasing the demand for these batteries, while simultaneously contributing to the growing waste from used batteries. Governments' incentives for EV adoption, particularly in countries like the U.S., China, and several European nations, are further bolstering the market for recycled lithium-ion batteries.

Recycling Process Technologies: The hydrometallurgical process dominates the market, accounting for 60% of the share in 2024. This process is favored for its high recovery efficiency and lower energy consumption compared to alternative methods. Key players like Li-Cycle Corp. have made significant strides in developing large-scale hydrometallurgical processing facilities, making the process commercially viable and scalable.

Environmental and Health Concerns: While lithium-ion battery recycling helps reduce waste and energy consumption compared to landfilling, it still faces environmental challenges. The incineration of plastics during the recycling process produces harmful emissions that can negatively impact health, contributing to respiratory illnesses and other health issues. These concerns may restrict the market's growth as industries and governments work to address these environmental impacts.

Market Segmentation: Battery Type: The Lithium Cobalt Oxide (LCO) battery category holds the largest market share of 65% in 2024 due to its high energy density, which makes it suitable for use in mobile phones, laptops, and electric vehicles. However, the Lithium Iron Phosphate (LFP) battery category is expected to grow at the fastest rate, driven by its increasing use in electric vehicles and energy storage systems, thanks to its stability and safety features.

Active Material Recycling Demand: The active material category is the largest and fastest-growing segment in battery component recycling, holding 70% of the market in 2024. This segment includes valuable components like cathodes and anodes, which contain precious metals such as lithium, nickel, and cobalt. Recycling these materials is crucial due to their high economic value and the environmental risks associated with improper disposal.

Automotive Industry Dominates: The automotive industry is the largest consumer of recycled lithium-ion batteries, holding 75% of the market in 2024. This dominance is driven by the increasing demand for electric vehicles and their batteries. As EV adoption grows, the need for recycled batteries to supply materials for new EVs is expected to rise significantly. The growing price sensitivity of EVs, coupled with government subsidies, is further enhancing the affordability and sustainability of electric vehicles, driving the recycling market.

Regional Dynamics: Asia-Pacific (APAC) leads the lithium-ion battery recycling market with a 40% market share in 2024 and is the fastest-growing region during the forecast period. The rising adoption of electric vehicles in countries like China, India, and Japan, combined with growing environmental awareness, is propelling the demand for recycled batteries. Additionally, India's updated Battery Waste Management Rules introduced in 2022 are encouraging battery recycling by holding manufacturers accountable for collecting and recycling batteries.

Investment in North America and Europe: North America holds a significant share of the market, especially due to the U.S.'s booming EV sector, with strong government support and significant investments in recycling infrastructure. For instance, Li-Cycle received a USD 375 million loan from the U.S. Department of Energy to build a lithium-ion battery recycling facility. Similarly, Europe is expected to grow at a strong pace, driven by government regulations emphasizing high recycling efficiency and the region's strong push for zero-emission vehicles.

Competitive Landscape: The lithium-ion battery recycling market is fragmented, with key players including Li-Cycle Corp., Umicore Group, Retriev Technologies, and Redwood Materials. These companies are focusing on scaling up recycling processes, entering strategic partnerships, and investing in research to increase efficiency and recovery rates. Partnerships, mergers, and acquisitions are prevalent as companies seek to strengthen their positions in the market.

Competitive Strategies:

Mergers & Acquisitions: Companies like Li-Cycle Corp. and Redwood Materials are expanding through partnerships and acquisitions to enhance their recycling capacities. For example, the partnership between Cirba Solutions and EcoPro aims to meet the growing demand for battery materials and supports clean energy initiatives in the U.S.

Technology Investments: Players are investing in advanced recycling technologies such as hydrometallurgical and pyrometallurgical processes to increase recovery rates and reduce environmental impact. Umicore and Neometals Ltd. are examples of companies focusing on developing sustainable and efficient technologies for battery material recovery.

Product Code: 12004

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Battery Type
- 1.4.2. Market Size Breakdown, by Recycling Process
- 1.4.3. Market Size Breakdown, by Battery Component
- 1.4.4. Market Size Breakdown, by End User
- 1.4.5. Market Size Breakdown, by Region
- 1.4.6. Market Size Breakdown, by Country
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Supply Chain and Value Chain Insights
5.8. Economic and Regulatory Impact
5.9. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
- 6.2.1. Global
- 6.2.2. North America
- 6.2.3. Europe
- 6.2.4. Asia-Pacific
- 6.2.5. Latin America
- 6.2.6. Middle East & Africa
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. Global Market

7.1. Overview
7.2. Market Revenue, by Battery Type (2019-2032)
7.3. Market Revenue, by Recycling Process (2019-2032)
7.4. Market Revenue, by Battery Component (2019-2032)
7.5. Market Revenue, by End User (2019-2032)
7.6. Market Revenue, by Region (2019-2032)

Chapter 8. North America Market

8.1. Overview
8.2. Market Revenue, by Battery Type (2019-2032)
8.3. Market Revenue, by Recycling Process (2019-2032)
8.4. Market Revenue, by Battery Component (2019-2032)
8.5. Market Revenue, by End User (2019-2032)
8.6. Market Revenue, by Country (2019-2032)

Chapter 9. Europe Market

9.1. Overview
9.2. Market Revenue, by Battery Type (2019-2032)
9.3. Market Revenue, by Recycling Process (2019-2032)
9.4. Market Revenue, by Battery Component (2019-2032)
9.5. Market Revenue, by End User (2019-2032)
9.6. Market Revenue, by Country (2019-2032)

Chapter 10. Asia-Pacific Market

10.1. Overview
10.2. Market Revenue, by Battery Type (2019-2032)
10.3. Market Revenue, by Recycling Process (2019-2032)
10.4. Market Revenue, by Battery Component (2019-2032)
10.5. Market Revenue, by End User (2019-2032)
10.6. Market Revenue, by Country (2019-2032)

Chapter 11. Latin America Market

11.1. Overview
11.2. Market Revenue, by Battery Type (2019-2032)
11.3. Market Revenue, by Recycling Process (2019-2032)
11.4. Market Revenue, by Battery Component (2019-2032)
11.5. Market Revenue, by End User (2019-2032)
11.6. Market Revenue, by Country (2019-2032)

Chapter 12. Middle East & Africa Market

12.1. Overview
12.2. Market Revenue, by Battery Type (2019-2032)
12.3. Market Revenue, by Recycling Process (2019-2032)
12.4. Market Revenue, by Battery Component (2019-2032)
12.5. Market Revenue, by End User (2019-2032)
12.6. Market Revenue, by Country (2019-2032)

Chapter 13. U.S. Market

13.1. Overview
13.2. Economic Indicators
13.3. Demographics and Population Insights
13.4. Regional Hotspots
13.5. Growth Drivers
13.6. Challenges and Barriers
13.7. Competitive Strategies
13.8. Emerging Players
13.9. Import/Export Policies
13.10. Compliance Requirements
13.11. Emerging Investment Areas
13.12. Major Ongoing Projects
13.13. Market Size and Forecast
- 13.13.1. Market Revenue, by Battery Type (2019-2032)
- 13.13.2. Market Revenue, by Recycling Process (2019-2032)
- 13.13.3. Market Revenue, by Battery Component (2019-2032)
- 13.13.4. Market Revenue, by End User (2019-2032)

Chapter 14. Canada Market

14.1. Overview
14.2. Economic Indicators
14.3. Demographics and Population Insights
14.4. Regional Hotspots
14.5. Growth Drivers
14.6. Challenges and Barriers
14.7. Competitive Strategies
14.8. Emerging Players
14.9. Import/Export Policies
14.10. Compliance Requirements
14.11. Emerging Investment Areas
14.12. Major Ongoing Projects
14.13. Market Size and Forecast
- 14.13.1. Market Revenue, by Battery Type (2019-2032)
- 14.13.2. Market Revenue, by Recycling Process (2019-2032)
- 14.13.3. Market Revenue, by Battery Component (2019-2032)
- 14.13.4. Market Revenue, by End User (2019-2032)

Chapter 15. U.K. Market

15.1. Overview
15.2. Economic Indicators
15.3. Demographics and Population Insights
15.4. Regional Hotspots
15.5. Growth Drivers
15.6. Challenges and Barriers
15.7. Competitive Strategies
15.8. Emerging Players
15.9. Import/Export Policies
15.10. Compliance Requirements
15.11. Emerging Investment Areas
15.12. Major Ongoing Projects
15.13. Market Size and Forecast
- 15.13.1. Market Revenue, by Battery Type (2019-2032)
- 15.13.2. Market Revenue, by Recycling Process (2019-2032)
- 15.13.3. Market Revenue, by Battery Component (2019-2032)
- 15.13.4. Market Revenue, by End User (2019-2032)

Chapter 16. Germany Market

16.1. Overview
16.2. Economic Indicators
16.3. Demographics and Population Insights
16.4. Regional Hotspots
16.5. Growth Drivers
16.6. Challenges and Barriers
16.7. Competitive Strategies
16.8. Emerging Players
16.9. Import/Export Policies
16.10. Compliance Requirements
16.11. Emerging Investment Areas
16.12. Major Ongoing Projects
16.13. Market Size and Forecast
- 16.13.1. Market Revenue, by Battery Type (2019-2032)
- 16.13.2. Market Revenue, by Recycling Process (2019-2032)
- 16.13.3. Market Revenue, by Battery Component (2019-2032)
- 16.13.4. Market Revenue, by End User (2019-2032)

Chapter 17. France Market

17.1. Overview
17.2. Economic Indicators
17.3. Demographics and Population Insights
17.4. Regional Hotspots
17.5. Growth Drivers
17.6. Challenges and Barriers
17.7. Competitive Strategies
17.8. Emerging Players
17.9. Import/Export Policies
17.10. Compliance Requirements
17.11. Emerging Investment Areas
17.12. Major Ongoing Projects
17.13. Market Size and Forecast
- 17.13.1. Market Revenue, by Battery Type (2019-2032)
- 17.13.2. Market Revenue, by Recycling Process (2019-2032)
- 17.13.3. Market Revenue, by Battery Component (2019-2032)
- 17.13.4. Market Revenue, by End User (2019-2032)

Chapter 18. Italy Market

18.1. Overview
18.2. Economic Indicators
18.3. Demographics and Population Insights
18.4. Regional Hotspots
18.5. Growth Drivers
18.6. Challenges and Barriers
18.7. Competitive Strategies
18.8. Emerging Players
18.9. Import/Export Policies
18.10. Compliance Requirements
18.11. Emerging Investment Areas
18.12. Major Ongoing Projects
18.13. Market Size and Forecast
- 18.13.1. Market Revenue, by Battery Type (2019-2032)
- 18.13.2. Market Revenue, by Recycling Process (2019-2032)
- 18.13.3. Market Revenue, by Battery Component (2019-2032)
- 18.13.4. Market Revenue, by End User (2019-2032)

Chapter 19. Spain Market

19.1. Overview
19.2. Economic Indicators
19.3. Demographics and Population Insights
19.4. Regional Hotspots
19.5. Growth Drivers
19.6. Challenges and Barriers
19.7. Competitive Strategies
19.8. Emerging Players
19.9. Import/Export Policies
19.10. Compliance Requirements
19.11. Emerging Investment Areas
19.12. Major Ongoing Projects
19.13. Market Size and Forecast
- 19.13.1. Market Revenue, by Battery Type (2019-2032)
- 19.13.2. Market Revenue, by Recycling Process (2019-2032)
- 19.13.3. Market Revenue, by Battery Component (2019-2032)
- 19.13.4. Market Revenue, by End User (2019-2032)

Chapter 20. China Market

20.1. Overview
20.2. Economic Indicators
20.3. Demographics and Population Insights
20.4. Regional Hotspots
20.5. Growth Drivers
20.6. Challenges and Barriers
20.7. Competitive Strategies
20.8. Emerging Players
20.9. Import/Export Policies
20.10. Compliance Requirements
20.11. Emerging Investment Areas
20.12. Major Ongoing Projects
20.13. Market Size and Forecast
- 20.13.1. Market Revenue, by Battery Type (2019-2032)
- 20.13.2. Market Revenue, by Recycling Process (2019-2032)
- 20.13.3. Market Revenue, by Battery Component (2019-2032)
- 20.13.4. Market Revenue, by End User (2019-2032)

Chapter 21. Japan Market

21.1. Overview
21.2. Economic Indicators
21.3. Demographics and Population Insights
21.4. Regional Hotspots
21.5. Growth Drivers
21.6. Challenges and Barriers
21.7. Competitive Strategies
21.8. Emerging Players
21.9. Import/Export Policies
21.10. Compliance Requirements
21.11. Emerging Investment Areas
21.12. Major Ongoing Projects
21.13. Market Size and Forecast
- 21.13.1. Market Revenue, by Battery Type (2019-2032)
- 21.13.2. Market Revenue, by Recycling Process (2019-2032)
- 21.13.3. Market Revenue, by Battery Component (2019-2032)
- 21.13.4. Market Revenue, by End User (2019-2032)

Chapter 22. Australia Market

22.1. Overview
22.2. Economic Indicators
22.3. Demographics and Population Insights
22.4. Regional Hotspots
22.5. Growth Drivers
22.6. Challenges and Barriers
22.7. Competitive Strategies
22.8. Emerging Players
22.9. Import/Export Policies
22.10. Compliance Requirements
22.11. Emerging Investment Areas
22.12. Major Ongoing Projects
22.13. Market Size and Forecast
- 22.13.1. Market Revenue, by Battery Type (2019-2032)
- 22.13.2. Market Revenue, by Recycling Process (2019-2032)
- 22.13.3. Market Revenue, by Battery Component (2019-2032)
- 22.13.4. Market Revenue, by End User (2019-2032)

Chapter 23. India Market

23.1. Overview
23.2. Economic Indicators
23.3. Demographics and Population Insights
23.4. Regional Hotspots
23.5. Growth Drivers
23.6. Challenges and Barriers
23.7. Competitive Strategies
23.8. Emerging Players
23.9. Import/Export Policies
23.10. Compliance Requirements
23.11. Emerging Investment Areas
23.12. Major Ongoing Projects
23.13. Market Size and Forecast
- 23.13.1. Market Revenue, by Battery Type (2019-2032)
- 23.13.2. Market Revenue, by Recycling Process (2019-2032)
- 23.13.3. Market Revenue, by Battery Component (2019-2032)
- 23.13.4. Market Revenue, by End User (2019-2032)

Chapter 24. South Korea Market

24.1. Overview
24.2. Economic Indicators
24.3. Demographics and Population Insights
24.4. Regional Hotspots
24.5. Growth Drivers
24.6. Challenges and Barriers
24.7. Competitive Strategies
24.8. Emerging Players
24.9. Import/Export Policies
24.10. Compliance Requirements
24.11. Emerging Investment Areas
24.12. Major Ongoing Projects
24.13. Market Size and Forecast
- 24.13.1. Market Revenue, by Battery Type (2019-2032)
- 24.13.2. Market Revenue, by Recycling Process (2019-2032)
- 24.13.3. Market Revenue, by Battery Component (2019-2032)
- 24.13.4. Market Revenue, by End User (2019-2032)

Chapter 25. Brazil Market

25.1. Overview
25.2. Economic Indicators
25.3. Demographics and Population Insights
25.4. Regional Hotspots
25.5. Growth Drivers
25.6. Challenges and Barriers
25.7. Competitive Strategies
25.8. Emerging Players
25.9. Import/Export Policies
25.10. Compliance Requirements
25.11. Emerging Investment Areas
25.12. Major Ongoing Projects
25.13. Market Size and Forecast
- 25.13.1. Market Revenue, by Battery Type (2019-2032)
- 25.13.2. Market Revenue, by Recycling Process (2019-2032)
- 25.13.3. Market Revenue, by Battery Component (2019-2032)
- 25.13.4. Market Revenue, by End User (2019-2032)

Chapter 26. Mexico Market

26.1. Overview
26.2. Economic Indicators
26.3. Demographics and Population Insights
26.4. Regional Hotspots
26.5. Growth Drivers
26.6. Challenges and Barriers
26.7. Competitive Strategies
26.8. Emerging Players
26.9. Import/Export Policies
26.10. Compliance Requirements
26.11. Emerging Investment Areas
26.12. Major Ongoing Projects
26.13. Market Size and Forecast
- 26.13.1. Market Revenue, by Battery Type (2019-2032)
- 26.13.2. Market Revenue, by Recycling Process (2019-2032)
- 26.13.3. Market Revenue, by Battery Component (2019-2032)
- 26.13.4. Market Revenue, by End User (2019-2032)

Chapter 27. U.A.E. Market

27.1. Overview
27.2. Economic Indicators
27.3. Demographics and Population Insights
27.4. Regional Hotspots
27.5. Growth Drivers
27.6. Challenges and Barriers
27.7. Competitive Strategies
27.8. Emerging Players
27.9. Import/Export Policies
27.10. Compliance Requirements
27.11. Emerging Investment Areas
27.12. Major Ongoing Projects
27.13. Market Size and Forecast
- 27.13.1. Market Revenue, by Battery Type (2019-2032)
- 27.13.2. Market Revenue, by Recycling Process (2019-2032)
- 27.13.3. Market Revenue, by Battery Component (2019-2032)
- 27.13.4. Market Revenue, by End User (2019-2032)

Chapter 28. Saudi Arabia Market

28.1. Overview
28.2. Economic Indicators
28.3. Demographics and Population Insights
28.4. Regional Hotspots
28.5. Growth Drivers
28.6. Challenges and Barriers
28.7. Competitive Strategies
28.8. Emerging Players
28.9. Import/Export Policies
28.10. Compliance Requirements
28.11. Emerging Investment Areas
28.12. Major Ongoing Projects
28.13. Market Size and Forecast
- 28.13.1. Market Revenue, by Battery Type (2019-2032)
- 28.13.2. Market Revenue, by Recycling Process (2019-2032)
- 28.13.3. Market Revenue, by Battery Component (2019-2032)
- 28.13.4. Market Revenue, by End User (2019-2032)

Chapter 29. South Africa Market

29.1. Overview
29.2. Economic Indicators
29.3. Demographics and Population Insights
29.4. Regional Hotspots
29.5. Growth Drivers
29.6. Challenges and Barriers
29.7. Competitive Strategies
29.8. Emerging Players
29.9. Import/Export Policies
29.10. Compliance Requirements
29.11. Emerging Investment Areas
29.12. Major Ongoing Projects
29.13. Market Size and Forecast
- 29.13.1. Market Revenue, by Battery Type (2019-2032)
- 29.13.2. Market Revenue, by Recycling Process (2019-2032)
- 29.13.3. Market Revenue, by Battery Component (2019-2032)
- 29.13.4. Market Revenue, by End User (2019-2032)

Chapter 30. Company Profiles

Chapter 31. Appendix

31.1. Sources and References
31.2. Related Reports

Lithium-Ion Battery Recycling Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)