US Lithium-ion Battery Recycling Market Size 2025-2029
The us lithium-ion battery recycling market size is valued to increase by USD 2.66 billion, at a CAGR of 19.4% from 2024 to 2029. Increasing demand for electric vehicles will drive the us lithium-ion battery recycling market.
Major Market Trends & Insights
- By Source - Non-mobility segment was valued at USD 1.13 billion in 2023
- By Type - Hydrometallurgical segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 3.57 billion
- Market Future Opportunities: USD 2.66 billion
- CAGR from 2024 to 2029 : 19.4%
Market Summary
- The lithium-ion battery recycling market in US is undergoing rapid expansion, driven by the convergence of environmental mandates and the exponential growth of electric vehicles and energy storage systems. This sector is critical for establishing a domestic supply chain security and mitigating resource dependency on foreign nations for critical mineral recovery.
- Key trends include the industrial-scale deployment of advanced hydrometallurgical recovery and pyrometallurgical processing techniques, which are increasingly optimized for higher yields of cathode active material. However, the industry grapples with challenges related to spent battery logistics and ensuring the safety of end-of-life battery management to prevent hazards like thermal runaway prevention.
- For instance, a logistics firm specializing in hazardous materials might leverage AI-powered routing systems to optimize collection from battery collection networks, reducing transit times and fuel costs by 15% while ensuring full compliance with transportation regulations, thereby improving both operational efficiency and safety. This strategic approach is essential for building a resilient circular economy for batteries.
What will be the Size of the US Lithium-ion Battery Recycling Market during the forecast period?
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How is the US Lithium-ion Battery Recycling Market Segmented?
The us lithium-ion battery recycling industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Source
- Non-mobility
- Mobility
- Type
- Hydrometallurgical
- Pyrometallurgical
- Mechanical separation
- Others
- Product type
- LiCoO2 battery
- NMC battery
- LiFePO4 battery
- Others
- Geography
- North America
- US
- North America
By Source Insights
The non-mobility segment is estimated to witness significant growth during the forecast period.
The non-mobility segment is shaped by a diverse feedstock, including consumer electronics and stationary energy storage systems.
Managing this stream requires adherence to strict regulations, including universal waste rule compliance and evolving extended producer responsibility (EPR) laws, which are critical for developing a robust e-waste recycling infrastructure.
As first-generation grid-scale projects approach energy storage system decommissioning, recyclers face challenges in feedstock consistency management. Advances in battery dismantling automation are improving the efficiency of electrolyte recovery and separator material recycling through methods like pyrolysis for plastics recovery.
A comprehensive lifecycle assessment shows that optimized non-mobility recycling can reduce resource dependency significantly, with some facilities improving material separation efficiency by over 15% through automated sorting.
The Non-mobility segment was valued at USD 1.13 billion in 2023 and showed a gradual increase during the forecast period.
Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
- Strategic decisions within the lithium-ion battery recycling market in US are increasingly shaped by detailed analysis of the cost of hydrometallurgical vs pyrometallurgical recycling. While pyrometallurgy offers scalability for handling diverse feedstocks, hydrometallurgy is favored for improving cobalt recovery rates from spent batteries and achieving battery-grade purity from recycled materials.
- A major operational focus is on optimizing black mass processing for nickel recovery, a critical component for EV battery cathodes. However, regulatory challenges in lithium-ion battery transport remain a significant hurdle, complicating efforts in scaling battery collection and logistics networks. Many companies are exploring second-life applications for EV batteries to create value before undertaking final resource recovery.
- The industry is also closely watching advancements in direct recycling methods, which promise lower energy consumption and higher material preservation. The economic viability of electrolyte recovery is still under evaluation, as is the effective managing of mixed chemistry battery streams.
- Companies that have vertically integrated collection and processing have reported a supply chain efficiency gain that is twice that of firms relying on third-party logistics. Finally, safety protocols for industrial battery dismantling and the impact of EPR on recycling business models are central to sustainable operations.
What are the key market drivers leading to the rise in the adoption of US Lithium-ion Battery Recycling Industry?
- The rising adoption of electric vehicles is the primary driver fueling the demand for lithium-ion battery recycling services in the US.
- The exponential growth of electric vehicles is the principal driver, necessitating scalable end-of-life battery management to ensure domestic supply chain security for critical metals. This creates a strong demand for an efficient closed-loop recycling process and sophisticated spent battery logistics.
- As part of urban mining for metals, recyclers are enhancing smelting and refining techniques and leaching agent optimization to maximize yields. Establishing expansive battery collection networks is crucial for feedstock acquisition.
- Furthermore, electric vehicle battery repurposing for secondary applications is gaining traction. Enhanced supply chain transparency has enabled some operators to reduce material loss by 10% during collection and transport, improving overall resource utilization.
What are the market trends shaping the US Lithium-ion Battery Recycling Industry?
- The increasing availability of government subsidies is a significant trend encouraging investment in battery recycling infrastructure. These financial incentives are designed to accelerate the development of a domestic circular economy for critical battery materials.
- A primary trend is the push toward creating sustainable battery materials through advanced recycling technologies, including emerging direct recycling methods. These processes aim to preserve the integrity of cathode active material, reducing the energy intensity compared to producing virgin materials. The industry is also preparing for the influx of next-generation power sources, developing protocols for solid-state battery technology recycling.
- Achieving high material purity standards is essential for creating battery-grade material production loops, with government support through recycled content mandates accelerating this shift. Implementation of battery passport integration is enhancing traceability, improving supply chain validation by up to 40%.
- The adoption of low-carbon technology adoption for these processes supports critical mineral recovery while reducing the operational carbon footprint by nearly 25%.
What challenges does the US Lithium-ion Battery Recycling Industry face during its growth?
- Significant safety concerns associated with the storage and transportation of spent lithium-ion batteries present a key challenge to the market's growth.
- A significant challenge involves mitigating safety risks such as thermal runaway prevention during storage and transport, which requires strict hazardous waste handling protocols. Effective battery management systems are crucial for monitoring battery health before decommissioning. The process of safe battery discharging and subsequent shredding and sorting technology must be optimized to prevent accidents and ensure environmental impact reduction.
- In pyrometallurgical processing, managing emissions through advanced off-gas treatment systems is a key regulatory hurdle. Furthermore, variability in feedstock complicates black mass refining and anode material recovery. Implementing AI-driven monitoring has been shown to decrease safety incidents by 20% in automated dismantling lines.
Exclusive Technavio Analysis on Customer Landscape
The us lithium-ion battery recycling market forecasting 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 us lithium-ion battery recycling market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of US Lithium-ion Battery Recycling Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, us lithium-ion battery recycling market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
American Battery Technology Co. - Key offerings center on end-to-end recycling solutions, including logistics, dismantling, and recovery of battery-grade materials like lithium and cobalt through advanced processing methods.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- American Battery Technology Co.
- Aqua Metals Inc.
- Battery Recyclers of America
- Battery Resourcers Inc.
- Call2Recycle Inc.
- Heritage Environmental Services LLC
- Li Cycle Holdings Corp.
- Lohum Cleantech Pvt. Ltd.
- Onto Technology LLC
- Raw Materials Co. Inc.
- Redwood Materials Inc.
- SMS group GmbH
- TES Singapore Pte Ltd.
- Total Reclaim
- Umicore SA
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 industry 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.
Recent Development and News in Us lithium-ion battery recycling market
- In September 2024, Element Recovery Corp. announced it secured $150 million in Series C financing to expand its hydrometallurgical recycling capacity for processing EV batteries in the Midwest.
- In November 2024, Redwood Materials Inc. finalized a multi-year partnership with a leading automotive OEM to establish a closed-loop supply chain for cathode materials recovered from end-of-life electric vehicle batteries.
- In February 2025, Aqua Metals Inc. demonstrated its proprietary AquaRefining technology at a pilot scale, achieving 99.9% purity for lithium recovered from black mass, a significant step toward commercialization.
- In April 2025, Li-Cycle Holdings Corp. received the final environmental permits to commence construction of its new integrated battery recycling 'Spoke' facility in the southeastern US, designed to process up to 20,000 metric tons annually.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled US Lithium-ion Battery Recycling Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 180 |
| Base year | 2024 |
| Historic period | 2019-2023 |
| Forecast period | 2025-2029 |
| Growth momentum & CAGR | Accelerate at a CAGR of 19.4% |
| Market growth 2025-2029 | USD 2663.8 million |
| Market structure | Fragmented |
| YoY growth 2024-2025(%) | 18.3% |
| Key countries | US |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The lithium-ion battery recycling market in US is advancing beyond nascent stages into a critical industrial sector, essential for national domestic supply chain security. The focus has shifted to scaling technologies like hydrometallurgical recovery and pyrometallurgical processing to handle increasing volumes of spent batteries.
- Innovations in black mass refining and selective precipitation are enabling higher material purity standards for battery-grade material production, particularly for cobalt recovery and lithium carbonate production. Boardroom decisions are increasingly influenced by the need to secure stable feedstock through robust spent battery logistics and end-of-life battery management strategies.
- For example, direct partnerships with automotive OEMs for end-of-life battery management have improved feedstock predictability by 40% for some recyclers. This strategic shift is vital for building a resilient circular economy for batteries and requires significant capital investment in battery dismantling automation and solvent extraction infrastructure, addressing both economic and environmental objectives.
What are the Key Data Covered in this US Lithium-ion Battery Recycling Market Research and Growth Report?
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What is the expected growth of the US Lithium-ion Battery Recycling Market between 2025 and 2029?
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USD 2.66 billion, at a CAGR of 19.4%
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What segmentation does the market report cover?
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The report is segmented by Source (Non-mobility, and Mobility), Type (Hydrometallurgical, Pyrometallurgical, Mechanical separation, and Others), Product Type (LiCoO2 battery, NMC battery, LiFePO4 battery, and Others) and Geography (North America)
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Which regions are analyzed in the report?
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North America
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What are the key growth drivers and market challenges?
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Increasing demand for electric vehicles, Safety issues related to storage and transportation of lithium-ion batteries
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Who are the major players in the US Lithium-ion Battery Recycling Market?
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American Battery Technology Co., Aqua Metals Inc., Battery Recyclers of America, Battery Resourcers Inc., Call2Recycle Inc., Heritage Environmental Services LLC, Li Cycle Holdings Corp., Lohum Cleantech Pvt. Ltd., Onto Technology LLC, Raw Materials Co. Inc., Redwood Materials Inc., SMS group GmbH, TES Singapore Pte Ltd., Total Reclaim and Umicore SA
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Market Research Insights
- The market is defined by a dynamic interplay between technological innovation and regulatory pressures. The push for sustainable battery materials is compelling firms to invest in closed-loop recycling process technologies that enhance resource efficiency in manufacturing. This shift is supported by increasing recycled content mandates, which are creating a stable demand for secondary raw materials.
- The growth of electric vehicle battery repurposing and urban mining for metals presents new revenue streams and sourcing opportunities. Companies adopting advanced shredding and sorting technology have reported a 20% improvement in material separation purity, directly impacting the quality of recovered metals. Furthermore, investments in optimized hazardous waste handling protocols have reduced compliance-related incidents by over 30%, strengthening operational resilience.
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