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The Electric Vehicle Battery Recycling Market size is estimated to grow at a CAGR of 38.68% between 2022 and 2027 and the size of the market is forecast to increase by USD 1,862.56 million. The growth of the market depends on several factors, the growing adoption of electric vehicles, the rise in demand for zero-emission vehicles, and the active role of government in the electric vehicle industry.
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.
Electric Vehicle Battery Recycling Market Forecast 2023-2027
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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. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The growing adoption of electric vehicles is a major driving factor for the growth of the electric vehicle battery recycling market during the forecast period. Due to 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 vendors, 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 electric vehicle battery recycling market growth during the forecast period.
The widening lithium supply-demand gap is the primary trend in the global electric vehicle battery recycling 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 electric vehicle battery recycling 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 electric vehicle battery recycling 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 recycling 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 electric vehicle battery recycling market growth during the forecast period.
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 recycling 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 recycling plant called Redwood Materials. The plant aims to improve the efficiency of battery production by recycling 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 electric vehicle battery recycling 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 the recycling 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 recycling segment. For instance, American battery recycling and manufacturing company Retriev Technologies are manufacturing an eco-friendly technique for recycling 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 electric vehicle battery recycling 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 electric vehicle battery recycling 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 electric vehicle battery recycling 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 electric vehicle battery recycling market during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global electric vehicle battery recycling market witnessed a significant slowdown due to the disruption in supply chains, and the industrial and commercial sectors during 2020 and early 2021, resulting in a decline in the adoption of electric vehicles. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of the adoption of electric vehicle battery recycling. Such factors are expected to drive the market during the forecast period.
Vendors 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 vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The electric vehicle battery recycling market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Electric Vehicle Battery Recycling 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 1,862.56 million |
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 Vendors, Market Positioning of Vendors, 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 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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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