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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 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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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).
The non-mobility segment is estimated to witness significant growth during the forecast period. The market is gaining significant attention due to the increasing production and usage of LIBs in various sectors, particularly electric vehicles (EVs). Subsidies and development grant programs are driving the market, with prominent companies such as Tosco, Umicore, Glencore, Li-Cycle, and BILITI Electric leading the way.
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The non-mobility segment was the largest segment and valued at USD 550.47 million in 2018. However, safety issues and the presence of hazardous chemicals, including acids, heavy metals like mercury and lead, and residual charge, pose a restraint. Recycling initiatives, public-private partnerships, and government regulations are addressing these concerns. Spent batteries are collected for recycling, which involves extracting lithium, cathodes, and anodes for use in storage systems and transportation sectors. The circular economy is promoting the reuse of raw materials, such as copper and lithium reserves, to mitigate environmental concerns and resource depletion. These advantages are expected to elevate the growth of the global market during the forecast period.
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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.
The Market in APAC is driven by the region's dominance in battery manufacturing and high consumption. With increasing population and disposable income, the demand for Li-ion batteries in consumer electronics, automotive, and energy storage segments is surging. However, the environmental impact of improper disposal necessitates recycling. Governments and battery retailers are implementing targets and offering financial incentives to encourage this process. Companies like Li-cycle Corp are leading the way with innovative solutions. The high initial investment required for setting up facilities is a challenge, but the long-term benefits outweigh the costs. The chemistry of Li-ion batteries and the presence of valuable materials like cobalt make them worth recycling. The transportation segment, particularly automotive batteries, is a significant contributor to the market. This involves processes like extrusion and plastics separation, and the recovered materials can be used in UPS systems, power supply, and even Lead Acid batteries. Regulations are being put in place to ensure responsible recycling and minimize environmental impact. Thus, such factors drive the market's growth in APAC during the forecast period.
The market is gaining significant attention due to the increasing adoption of electric vehicles (EVs) and the need to address the environmental concerns associated with spent batteries. Developing countries with large reserves of raw materials like Lithium, Copper, and other heavy metals are at the forefront of this market. Government development grant programs and recycling initiatives are being implemented to promote battery recycling. Public-private partnerships between prominent companies such as Toxco, Umicore, Glencore, and Lithium suppliers are driving innovation in this field. Safety issues related to the handling of spent batteries, which contain hazardous chemicals like acids and heavy metals such as Mercury, Lead, and other hazardous substances, necessitate the need for proper processes. They not only addresses environmental concerns but also mitigates resource depletion by recovering valuable materials for use in new batteries. Storage systems for spent batteries are crucial to ensure residual charge safety and prevent potential property damage or harm to people. This is a complex process that requires advanced technology and expertise. Companies like Umicore and Glencore are leading the way in this area, ensuring a sustainable and responsible approach to LIB recycling. The cycling industry is exploring renewable energy storage systems, including nickel metal hydride batteries, which are used in flooded and valve-regulated types, and are essential for the manufacturing of new batteries sold by battery retailers.
Government support for lithium-ion battery recycling is the key factor driving market growth. In response to growing environmental concerns and the depletion of fossil fuel resources, various countries are incentivizing the transition from traditional vehicles to Electric Vehicles (EVs). This shift is being facilitated through subsidies and regulations, such as France, the UK, and the Netherlands' plans to ban the sale of diesel vehicles by 2030-2040. China is also taking significant steps to promote EV adoption, offering subsidies and imposing restrictions on new diesel and petrol car ownership.
However, the widespread use of EVs raises concerns regarding the disposal of spent Lithium-Ion Batteries (LIBs), which contain hazardous chemicals like acids, heavy metals, mercury, and lead. Recycling initiatives, public-private partnerships, and development grant programs are being implemented by prominent companies like Toxco, Umicore, Glencore, Li-Cycle, Rochester, New York-based BILITI Electric, and others to address these challenges. The process involves extracting valuable materials like lithium, copper, and cathodes and anodes from the spent batteries. Safety issues and residual charge management are crucial considerations in the recycling process to ensure the safety of people and property. Government regulations play a vital role in promoting LIB recycling and ensuring a circular economy for EVs. Thus, such factors drive the market's growth during the forecast period.
Opening new battery recycling facilities is the primary trend shaping market growth. The Lithium-Ion Battery (LIB) recycling market is experiencing significant growth due to the increasing demand for battery recycling in the electric vehicles (EVs) sector. This trend is driven by subsidies for EVs and the need to reduce reliance on foreign sources of battery materials. Safety issues, storage, and transportation of spent batteries pose challenges in the recycling process. These batteries contain acids, heavy metals such as mercury, lead, and hazardous chemicals, which require careful handling.
Companies like Toxco, Lithium, Umicore, Glencore, and BILITI Electric are at the forefront of LIB recycling, utilizing property and people to develop innovative recycling initiatives through development grant programs and public-private partnerships. Government regulations are also playing a crucial role in the circular economy by addressing environmental concerns and resource depletion through the recycling of raw materials like copper and lithium. Despite these efforts, the recycling industry faces restraints due to the residual charge and complex electrochemical cell structure of the cathode and anode. Hence, rising investments in battery reprocessing plants are expected to drive the growth of the market during the forecast period.
Safety issues related to the storage and transportation of spent batteries is a challenge that affects market growth. The market faces logistical challenges in managing the collection and transportation of spent batteries from electric vehicles and other sources. Key issues include minimizing risks of contamination during delivery, addressing safety concerns, and complying with regulations regarding the transport of hazardous materials, such as acids, heavy metals, mercury, and lead. Two primary transportation methods are trucking and rail. Efficient waste management is crucial due to environmental concerns and resource depletion.
Prominent companies in battery recycling include Toxco, Umicore, Glencore, Li-Cycle, and BILITI Electric. Government development grant programs and public-private partnerships support recycling initiatives. Lithium, a key raw material, is in high demand due to the growing use of LIBs in electrochemical cells for EVs. The circular economy emphasizes the importance of recycling and reusing batteries to reduce the need for new raw materials and reserves. However, the transportation sector's high energy consumption and potential hazards, such as gaseous emissions and noise, pose restraints. Safety issues, property damage, and risks to people are also concerns. Companies invest in storage systems to ensure the safe handling of spent batteries before recycling. This factor plays a key role in the development of the market.
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
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:
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.
The market is experiencing significant growth due to the increasing demand for electric and hybrid vehicles, as well as portable electronic devices. According to recent studies, the recycling market is also gaining momentum as the world focuses on sustainable energy solutions and reducing e-waste. The recycling process involves the extraction of Lithium, Cobalt, Nickel, and other valuable metals from used batteries. Companies like Li-Cycle, Redwood Materials, and Retriev Technologies are leading the charge in this sector, using innovative technologies such as hydrometallurgical and pyrometallurgical processes. The European Union and other governments are also implementing regulations to encourage battery recycling, creating a favorable business environment. The market is projected to reach new heights in the coming years, driven by the growing demand for sustainable energy solutions and the need to reduce reliance on primary resources. The market is an essential component of the circular economy, contributing to the reduction of greenhouse gas emissions and the preservation of natural resources.
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 market 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 Method
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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