Battery Recycling Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Chemistry, By Application, By Source, By Region & Competition, 2021-2031F

The Global Battery Recycling Market is projected to expand from USD 30.98 Billion in 2025 to USD 67.82 Billion by 2031, reflecting a CAGR of 13.95%. This industry involves the collection, dismantling, and reprocessing of end-of-life energy storage devices to reclaim valuable raw materials like lithium, cobalt, nickel, and lead for future use. Such processes are vital for reintegrating critical minerals into the supply chain and reducing environmental waste. Growth in this sector is largely propelled by the increasing worldwide adoption of electric vehicles and strict government regulations concerning material recovery rates. Additionally, the effectiveness of existing reclamation systems bolsters market development; for instance, Battery Council International reported in 2024 that lead batteries in the United States achieved a 99% recycling rate, setting a standard for the circular economy.

Despite these advances, the market encounters substantial hurdles related to the economic feasibility of recycling newer battery chemistries. The substantial logistical expenses involved in the safe transport of hazardous lithium-ion waste, coupled with the technical intricacies of extracting high-purity materials from varied cell designs, frequently pressure profit margins. These financial and technical obstacles form a bottleneck that hinders the swift scaling of recycling infrastructure needed to handle the growing quantity of used electric vehicle batteries.

Market Driver

The rapid rise in global electric vehicle adoption serves as the primary driver for the battery recycling market, generating a massive volume of end-of-life units that require industrial-scale processing. As EV usage becomes more widespread, the accumulation of spent lithium-ion packs is evolving from a logistical challenge into a key opportunity, urging the industry to boost capacity to handle this hazardous yet valuable waste. This increase in volume turns used batteries into a dependable source for secondary raw materials, thereby lessening the demand for virgin resource extraction. Highlighting this potential, the International Energy Agency's "Global EV Outlook 2024," released in April 2024, noted that demand for electric vehicle batteries exceeded 750 GWh in 2023, indicating the vast amount of recyclable material poised to enter the market.

Concurrently, strict government regulations and recycling mandates are driving a shift toward a circular supply chain to ensure independence in critical minerals. Policymakers are establishing firm recovery targets and allocating significant funds to decrease dependence on foreign mining, thus connecting recycling efforts with national security and sustainability objectives. These legal frameworks foster a stable investment climate by guaranteeing a market for recycled goods. For example, the European Council reported in May 2024 that the "Critical Raw Materials Act" came into effect, mandating that 25% of the EU's annual strategic raw material consumption come from recycling by 2030. Additionally, in 2024, the U.S. Department of Energy announced over $3 billion in funding to bolster domestic battery material processing and recycling, showcasing the strong fiscal backing for these initiatives.

Market Challenge

A major obstacle hindering the expansion of the Global Battery Recycling Market is the economic difficulty inherent in recycling newer battery chemistries, especially lithium-ion variants. In contrast to the mature lead-acid sector, recovering materials from these modern energy sources entails high logistical costs because of the dangers involved in transporting high-voltage waste. Furthermore, the technical difficulties associated with dismantling and processing a wide variety of evolving cell formulations lead to considerable operational inefficiencies. Together, these elements squeeze profit margins and deter the capital investment needed to build scalable reclamation infrastructure, creating a financial bottleneck that slows the industry's ability to handle the expected surge of end-of-life batteries.

The consequences of these economic hurdles are visible in the growing disparity between infrastructure capacity and actual profitability. Data from the International Energy Agency in 2024 indicates that while global battery recycling capacity exceeded 300 gigawatt-hours annually, the supply of end-of-life batteries was not enough to fully utilize these facilities. This gap creates a financial disconnect that increases the economic pressure on recycling operations. Such underutilization heightens risks for investors and delays the formation of a stable, self-reliant market for recovered critical minerals.

Market Trends

Strategic vertical integration by automotive OEMs is reshaping the market as manufacturers advance beyond basic transactional dealings to ensure long-term availability of critical materials. By forming direct partnerships with or investing in recycling companies, automakers are establishing closed-loop ecosystems that allow them to retain ownership of valuable minerals such as lithium and cobalt, which helps mitigate supply chain volatility and decreases dependence on virgin mining. This trend marks a transition from treating recycling merely as a regulatory duty to viewing it as a vital procurement strategy for future battery manufacturing. For instance, BMW Group announced in a September 2024 press release titled "BMW of North America and Redwood Materials Establish Partnership" that it has integrated recycling into its supply chain, linking nearly 700 U.S. locations to a network aimed at returning critical minerals to the production process.

Concurrently, the rise of decentralized spoke-and-hub recycling networks is increasing as the industry addresses the logistical inefficiencies of transporting heavy and hazardous battery waste. Under this model, batteries are mechanically shredded at local "Spoke" facilities to create inert black mass, which is then shipped safely and cost-effectively to centralized "Hub" refineries for final chemical processing. Separating the mechanical and hydrometallurgical phases streamlines logistics by minimizing the transport distance for dangerous goods and facilitating scalable collection infrastructure near waste sources. Underscoring the financial support for this shift, Li-Cycle Holdings Corp. reported in a March 2024 press release titled "Li-Cycle Announces $75 Million Strategic Investment from Glencore" that it received a $75 million investment to boost liquidity and further develop this distributed recycling strategy.

Key Market Players

• Umicore N.V
• Retriev Technologies
• American Battery Technology Company
• Li-Cycle Holdings Corp
• Aqua Metals
• Battery Solutions, LLC
• Recupyl
• Gopher Resource
• Glencore plc
• Retech Recycling Technology AB

Report Scope

In this report, the Global Battery Recycling Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Battery Recycling Market, By Chemistry

• Lithium-ion
• Lead Acid
• Nickel

Battery Recycling Market, By Application

• Transportation
• Consumer Electronics
• Industrial
• Others

Battery Recycling Market, By Source

• Industrial Batteries
• Automotive Batteries
• Customer & Electronic Appliances Batteries

Battery Recycling Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Battery Recycling Market.

Available Customizations:

Global Battery Recycling Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).