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The Electric Vehicle Battery Recycling Market size is forecast to increase by USD 1.86 billion, at a CAGR of 38.68% between 2022 and 2027. The market's growth hinges on multiple factors, notably the surging uptake of electric vehicles (EVs), a concurrent increase in demand for zero-emission vehicles, and the proactive involvement of governments in the electric vehicle industry. This paradigm shift reflects a broader global trend towards sustainability and eco-friendly transportation solutions. The growing awareness of environmental concerns and the need to curb greenhouse gas emissions have propelled the rapid expansion of the EV market. Additionally, advancements in EV technology, coupled with supportive government policies such as tax incentives and subsidies, have further accelerated the market's growth trajectory, making electric vehicles increasingly attractive and viable alternatives to traditional combustion engine vehicles.
Market Forecast 2023-2027
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This report extensively covers market segmentation by source (production scrap and end of life), vehicle type (passenger cars and commercial vehicles), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is propelled by the rapid growth of electric vehicles (EVs) in the automotive sector. Companies like Retriev Technologies, Aqua Metals, and Enersys are pioneering advancements in battery recycling technologies. The trend towards eco-friendly solutions and the rising concern about pollution levels and global warming are driving forces. Challenges include managing waste sustainably, high material costs, and developing efficient recycling processes. The market's future hinges on addressing these challenges, leveraging gigafactories for scale, and refining EVB recycling chemistry and processes for a sustainable future. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The growing adoption of electric vehicles is a major driving factor for the growth of the market during the forecast period. The harmful effects of vehicular emissions caused by fossil fuel-operated vehicles have reached alarming levels, it has led to global warming and climate change. Thus, there is an increasing demand for electric vehicles, as they do not cause as much pollution.
Furthermore, there is a growing preference for electric vehicles by consumers due to the rapid fluctuations in global oil and gas prices. Therefore, there is a rise in the adoption of electric vehicles globally, resulting in enhanced energy security, improved fuel economy, and lower vehicular emissions. For instance, in November 2021, the Australian government announced plans to encourage people to buy electric vehicles. In Q4 2021, seven new electric car models were expected to arrive in Australia. These electric vehicles included five from European companies, namely Mercedes-Benz, Volvo, and BMW, plus Polestar, while two, including the Hyundai Ioniq 5 and the Lexus ux300e, were made by Asian manufacturers. Hence, such factors are expected to drive the global market growth during the forecast period.
The widening lithium supply-demand gap is the primary trend in the global market growth. There is a rising demand for lithium due to the increase in demand for electric vehicle batteries across the world. Therefore, this rise in demand led to a scarcity of lithium in the market.
Lithium has a wide variety of applications across sectors such as pharmaceuticals, construction, glass, and ceramic. Even though Lithium constitutes only a small portion of the cost of other raw materials required for battery manufacturing, with the increasing number of electric vehicles worldwide, lithium suppliers will be pressured to meet the demand. Hence, such factors are expected to drive the global market growth during the forecast period.
Safety issues related to the storage and transportation of spent batteries are a major challenge to the growth of the global market. One of the key challenges faced by the lithium-ion battery waste management market is its critical logistics issues. One of the key issues lies with the transportation of these collected wastes for the appropriate disposal.
There should be a major emphasis given to solid wastes that are generated from battery operations. Some of the main criteria the manufacturers should consider while designing while designing the handling and transportation systems of disposed of lithium-ion batteries include prevention, reuse and recycling, compositing, and landfills. Hence such factors can pose a significant threat to the global market growth during the forecast period.
The Market is a critical segment within the automotive sector, driven by the increasing adoption of electric vehicles (EVs) and the need for sustainable solutions to manage battery waste. Recycling companies such as Retriev Technologies, Aqua Metals, and Enersys are at the forefront of developing advanced processes for EVB recycling. Waste management is a key concern, given the valuable resources present in lithium-ion and lead-acid batteries used in EVs. These batteries, while essential for eco-friendly transportation and reducing greenhouse gases and pollution levels compared to traditional gasoline vehicles, also pose challenges in terms of material costs and environmental impact. The chemistry involved in EVB recycling is complex, requiring sophisticated gigafactories equipped with advanced technologies for EVB recycling. Ascend Elements and Koura are among the innovators in developing solutions for efficient battery recycling processes.
The production scrap segment will account for a major share of the market's growth during the forecast period. Recycling of production scrap mainly refers to the recycling and reusing of waste generated during the manufacturing process and this includes scrap generated during cell assembly, electrode manufacturing, and battery pack assembly. Some of the key benefits of production scrap include reducing waste, conserving natural resources, and mitigating the environmental impact of electric vehicle battery production.
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The production scrap segment was valued at USD 122.11 million in 2017 and continued to grow until 2021. other key benefits and applications of recycling production scrap are it can reduce the cost of producing new batteries, as recycled materials are often cheaper than virgin materials. For instance, Tesla Inc (Tesla) offers an in-house battery plant called Redwood Materials. The plant aims to improve the efficiency of battery production by materials that are usually discarded as waste during manufacturing. This includes materials like electrode scraps, lithium, cobalt, and nickel. Therefore, such factors are expected to fuel the growth of the production scarp segment in the global market during the forecast period.
Based on vehicle type, the market has been segmented into passenger cars and commercial vehicles. Factors such as increased demand for electric cars, including their eco-friendliness, fuel efficiency, and lower operating costs are significantly contributing to the growth of this segment. However, there is a growing concern regarding of electric car batteries as they reach their end of life. Recycling these electric vehicle batteries is very crucial as they contain several hazardous materials and valuable metals, including cobalt, nickel, and lithium. Several companies are competing to gain market share in the electrical battery segment. For instance, American battery recycling and manufacturing company Retriev Technologies are manufacturing an eco-friendly technique for electric vehicle batteries, which includes shredding and heating the batteries and separating the metals to make them ready for reuse in new batteries. Such factors are expected to drive the growth of this segment which in turn will drive the growth of the global market during the forecast period.
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APAC is estimated to contribute 47% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the key reasons for the increase in growth of the global market in the APAC is the rapidly growing demand for electric mobility solutions, resulting in the need for efficient and sustainable battery recycling solutions has become crucial to ensure the long-term sustainability of the electric vehicle industry. Factors such as increasing environmental awareness and regulations are also driving the growth of the market in the region. Also, governments in these countries are undertaking several initiatives to encourage the adoption of electric mobility solutions and ensure the sustainability of these technologies. Therefore, such factors are expected to drive the global market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accurec Recycling GmbH: The company offers electric vehicle battery recycling for NiCd, NiMH, and Lithium batteries.
Aqua Metals Inc: The company offers electric vehicle battery recycling such as aqua refining, pyro, and standard hydro process.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The market research and growth analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The Market is witnessing rapid growth, driven by factors such as the increasing adoption of electric vehicles, rising environmental awareness, and the need for sustainable waste management practices. As the automotive sector transitions towards eco-friendly alternatives, the demand for efficient battery recycling processes has surged. Recycling companies are focusing on valuable resources like lithium, aiming to reduce material costs and minimize environmental impact. The rising popularity of EVs, particularly in emerging economies, has led to a surge in demand for battery recycling solutions. However, the market faces hurdles such as the lack of advanced recycling technologies, high costs associated with recycling, and the risk of unexpected discharges during the recycling process.
However, challenges persist, including dealing with hazardous chemicals and managing fire risks during recycling processes. Additionally, high recycling costs and the lack of advanced technologies pose obstacles to the market's growth. Companies like Retriev Technologies, Aqua Metals, and Enersys are actively involved in battery recycling solutions, utilizing processes such as pyrometallurgical and hydrometallurgical methods.The shift towards lithium-ion batteries highlights safety concerns, emphasizing the need for environmentally sustainable and non-toxic recycling practices. Innovations in battery chemistry, such as Lithium Iron Phosphate, offer safer alternatives, addressing overheating risks and expanding the operating temperature range. With the emergence of gigafactories and advancements in EVB recycling technologies, the Market is poised for significant expansion, contributing to global efforts in reducing pollution levels and greenhouse gas emissions associated with traditional gasoline-powered vehicles.
Furthermore, the Market is a crucial component of the automotive and environmental sectors, driven by factors such as the increasing adoption of electric vehicles (EVs), rising concerns about greenhouse gases and pollution levels from gasoline-powered vehicles, and the demand for sustainable battery technology. Key elements in this market include the recycling of lithium-based batteries, lead-acid batteries, and other battery technologies. Companies like Li-Cycle, Recupyl, Ascend Elements, and Koura are actively involved in developing innovative recycling processes to address challenges such as high recycling costs, the presence of hazardous materials like heavy metals and acids, and the need for efficient technologies.
Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 38.68% |
Market growth 2023-2027 |
USD 1.86 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
35.17 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, Norway, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accurec Recycling GmbH, Amaron Batteries, Andritz AG, Aqua Metals Inc., Battery Solutions LLC, Call2Recycle Inc., Camel Group Co. Ltd., Contemporary Amperex Technology Co. Ltd., Duesenfeld GmbH, Eco-Bat Technologies Ltd., EnerSys, Exxon Mobil Corp., Ganfeng Lithium Co. Ltd., GEM Co. Ltd., Li Cycle Holdings Corp., Nikkei Inc., RecycLiCo Battery Materials Inc, Saubermacher Dienstleistungs AG, Umicore NV, and Snam S.p.A |
Market dynamics |
Parent market analysis, market growth analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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