Lithium-Ion Battery Recycling Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Lithium-Ion Battery Recycling Market Forecast 2024-2028

The lithium-ion battery recycling market size is forecast to increase by USD 3.00 billion, at a CAGR of 21.81% between 2023 and 2028. Market growth hinges on several key factors, including a surge in demand for electric vehicles (EVs) driven by environmental concerns and technological advancements. Government initiatives supporting lithium-ion battery recycling further bolster market prospects, emphasizing sustainability and resource conservation. Moreover, the trend towards increasing urbanization in emerging markets amplifies the need for cleaner transportation solutions, spurring the adoption of EVs and associated technologies. These factors collectively contribute to a robust outlook for the market, encouraging innovation and investment in EV technology, battery-reusing infrastructure, and sustainable urban mobility solutions. However, challenges such as infrastructure development, regulatory complexities, and market competition remain critical considerations for stakeholders navigating this dynamic landscape.

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Market Segmentation

The market encompasses a range of critical factors driving sustainability and resource management in the electric vehicles (EVs) industry. Subsidies and government incentives propel growth, addressing safety issues and promoting storage and transportation of spent batteries. Challenges like acids, heavy metals (including mercury and lead), and hazardous chemicals underscore the need for responsible recycling to manage residual charge and protect property and people. State or federal governments, through development grant programs and public-private partnerships, foster recycling initiatives despite the high cost of recycling. Prominent companies like Umicore, Toxco, and Glencore lead the charge in innovative battery recycling technologies, addressing environmental concerns and mitigating resource depletion. With a focus on recovering valuable raw materials such as copper and lithium, countries strategically manage their reserves to sustain the Lithium-Ion Battery (LIB) industry while reducing environmental impact.

Furthermore, this market report extensively covers market segmentation by source (non-mobility and mobility), method (hydrometallurgical, physical and mechanical, and pyrometallurgical), and geography (APAC, Europe, North America, South America, and the Middle East and Africa).

By Source

The non-mobility segment is estimated to witness significant growth during the forecast period. The non-mobility segment is experiencing exponential growth due to increased purchasing power and improved living standards of consumers. The segment with the most spectacular growth is consumer electronics. Lithium-ion batteries represent the majority of the consumer electronics market and are proving to be the ideal power source for home appliances.

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The enhanced oil recovery segment was the largest segment and valued at USD 550.47 million in 2018. In terms of charge-holding capacity, lithium-ion and NiMH batteries exhibit almost the same capacities. However, compared with NiMH, lithium-ion cells can be charged and discharged more quickly. Lithium batteries can also provide extremely low self-discharge rates and can be charged quickly. These advantages are expected to elevate the growth of the global market during the forecast period.

By Region

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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Due to the presence of several large lithium-ion battery manufacturers and manufacturing units of lithium-ion battery-powered equipment and automobiles in the region, APAC dominates the market.

Moreover, the region has the highest population in the globe and is the largest secondary battery consumer. The increasing consumption is attributed to rising disposable incomes and improving living standards in the region. In addition, rising environmental concerns due to improper lithium-ion battery disposal drive the growth of the market. Countries such as China, South Korea, India, and Australia are the major revenue contributors in APAC. Thus, such factors drive the market's growth in APAC during the forecast period.

Market Dynamics and Customer Landscape

The market is propelled by the exponential growth of electric vehicles, supported by subsidies and government initiatives. However, challenges such as safety issues in handling spent batteries containing acids, heavy metals like mercury and lead, and other hazardous chemicals persist. Recycling initiatives, public-private partnerships, and development grant programs aim to address the high cost of recycling and manage environmental concerns like resource depletion. Prominent companies like Umicore and Glencore play a pivotal role in advancing battery recycling technologies to sustainably manage raw materials like copper and lithium.

Key Market Driver

Increasing urbanization in emerging markets is the key factor driving market growth. The population has been constantly growing across the globe. Moreover, the world has been undergoing a wave of urbanization. The growing population and the trend of migration from rural to urban areas will drive the consumption of various equipment, such as headphones, handheld power tools, and small and large appliances, which require power sources such as primary batteries. 

Furthermore, lithium-ion batteries are used in smartphones, laptops, automobiles, and other equipment. Moreover, lithium materials used to manufacture batteries are not easily found in abundance in the market in focus. Therefore, recycling used primary batteries facilitates extracting and reusing the same components to manufacture new power sources. Thus, such factors drive the market's growth during the forecast period.

Significant Market Trend

Opening new battery recycling facilities is the primary trend shaping market growth. Due to the rising demand for battery recycling, market players are opening new battery reprocessing facilities. In addition, the governments of different countries are extending reprocessing centers to concentrate on the recycling industry and decrease the dependence on foreign sources of battery materials.

For instance, in March 2023, Umicore, a Belgium-based global materials technology and reprocessing group, launched a new business unit, Battery Recycling Solutions. The facility will have the capacity to recycle 150,000 tons of batteries per year and is expected to be ready by 2026. Hence, rising investments in battery reprocessing plants are expected to drive the growth of the market during the forecast period.

Major Market Challenge

Safety issues related to the storage and transportation of spent batteries is a challenge that affects market growth. Global market players are facing serious logistical problems. Monitoring and collecting discarded lithium-ion batteries is the first step in the entire cycle of lithium-ion battery recycling management. One of the key issues lies in transporting collected waste to the appropriate disposal site. National or regional regulations govern these steps in most areas.

Furthermore, some of the key hazards that put the significant onus of efficient waste management on the logistics segment include water pollution, land destruction, noise from transportation, gaseous emissions, and high energy consumption. In addition, the main factor that the transportation system needs to take care of while disposing of lithium-ion batteries is to minimize the risk of contamination during the delivery. This factor plays a key role in the development of the market.

Key Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Lithium-Ion Battery Recycling Market Key Companies

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.

Onto Technology LLC: The company offers lithium-ion battery recycling such as recovery of valuable materials from consumer electronic batteries, and nickel-rich electric vehicle and stationary storage battery chemistries.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Akkuser Oy
• Battery Solutions LLC
• Befesa SA
• Contemporary Amperex Technology Co. Ltd.
• Duesenfeld GmbH
• Ecobat LLC
• Fortum Oyj
• GEM Co. Ltd.
• Glencore Plc
• Gopher Resource LLC
• Li Cycle Holdings Corp.
• Neometals Ltd.
• Onto Technology LLC
• RecycLiCo Battery Materials Inc
• Sistemas de Tubo Ambiental SA de CV
• Tata Chemicals Ltd.
• TES Singapore Pte Ltd.
• Umicore SA
• Veolia Environnement SA
• Lithion Recycling

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Source Outlook 
  • Non-mobility
  • Mobility
• Method Outlook 
  • Hydrometallurgical
  • Physical and mechanical
  • Pyrometallurgical
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by various factors. Subsidies and development grant programs from state or federal governments incentivize recycling initiatives, promoting public-private partnerships for sustainable practices. However, challenges such as dealing with hazardous chemicals and heavy metals like mercury and lead pose restraints due to environmental impact. Companies like Toxco and Li-Cycle are prominent in this sector, leveraging advanced technologies for efficient recycling systems and resource conservation. The market also faces challenges like the high cost of recycling and resource depletion in raw materials like copper and cobalt used in Lithium-Ion Battery (LIB) production. Despite financial incentives and recycling targets set by governments, the high initial investment and lack of stern policies remain concerns. Nonetheless, the demand for renewable energy storage systems and sustainable battery solutions continues to drive innovation and investments in this sector, aiming for a circular economy in battery recycling to reduce waste and promote environmental stewardship.

Moreover, the market is crucial in addressing environmental concerns and sustainable resource management. Restraint in terms of hazardous waste disposal has prompted the development of innovative recycling processes. Acids and residual charge present challenges in safe disposal, driving the need for advanced electrochemical cell technologies. This market involves not just property and people but also regulatory bodies like the Centre for Energy Economics (CEE), shaping guidelines for safe collection of used batteries. Prominent companies like BILITI Electric and Li-cycle Corp lead the way with efficient recycling practices. Government regulations play a pivotal role in enforcing responsible recycling, especially for materials like Lithium Cobalt Oxide (LCO), Lithium Iron Phosphate (LFP), and others used in Li-ion batteries and UPS systems. The market also deals with Lead Acid batteries, nickel metal hydride batteries, and various battery types used in the transportation segment and automotive industry. With a focus on chemistry and plastics extrusion, recycling processes aim to recover valuable materials like lithium, cobalt, manganese, and nickel for the manufacturing of new batteries

Market Scope
Report Coverage	Details
Page number	165
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 21.81%
Market Growth 2024-2028	USD 3.00 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	21.12
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 35%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Akkuser Oy, Battery Solutions LLC, Befesa SA, Contemporary Amperex Technology Co. Ltd., Duesenfeld GmbH, Ecobat LLC, Fortum Oyj, GEM Co. Ltd., Glencore Plc, Gopher Resource LLC, Li Cycle Holdings Corp., Neometals Ltd., Onto Technology LLC, RecycLiCo Battery Materials Inc, Sistemas de Tubo Ambiental SA de CV, Tata Chemicals Ltd., TES Singapore Pte Ltd., Umicore SA, Veolia Environnement SA, and Lithion Recycling
Market dynamics	Parent market 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 trends, Market condition analysis for 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market industry across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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