Lithium-Ion (Li-Ion) Battery Recycling Market

Industry Overview

Lithium-ion battery recycling is the process of extracting useful components such as battery metals (Li, Ni, Co, or Mn) or electrolytes from spent lithium-ion batteries to make new products, such as batteries. Batteries are first gathered and arranged according to type and after that, they go through mechanical procedures that crush and separate parts like electrolytes, anodes, and cathodes. Then, metals including manganese, nickel, cobalt, and lithium are extracted using hydrometallurgical or pyrometallurgical techniques. These metals are refined and fit for repurposing in battery manufacturing. Non-metallic materials are also handled differently to dispose of or repurpose them. This recycling helps to create a more sustainable energy storage market by minimizing the negative effects on the environment, conserving resources, and lowering the need for raw material extraction.

Global Li-ion Battery Recycling Market was worth USD 8 billion in 2023 and is expected to reach USD 42 billion by 2030 with a CAGR of 25.64% during the forecast period, i.e., 2025-2030. Li-ion battery recycling is expanding due to rising demand for electric vehicles and renewable energy storage. It conserves resources, reduces waste, and mitigates environmental impact, aligning with global sustainability goals. Additionally, recycling technologies are becoming more efficient and cost-effective.

Geographically, the market is expanding rapidly in North America, Europe, and the Asia Pacific, as a result of the presence of large battery manufacturing companies, huge investments in R&D, and rising demand for electric vehicles; however, the market confronts constraints such as inadequate collection infrastructure, high initial recycling costs, varying battery chemistries, and concerns regarding safety and environmental impacts of certain recycling techniques. 

Overall, the Li-ion battery recycling market offers potential prospects for market participants to develop and fulfill the growing needs of a wide range of industries including transportation, energy storage, consumer electronics, and other industries.

Market Segmentation

Insight by Chemistry

Based on the chemistry, the global Li-ion battery recycling market is segmented into Lithium Cobalt Oxide (LCO), Lithium Manganese Oxide (LMO), Lithium Nickel Manganese Cobalt Oxide (NMC), Lithium Iron Phosphate (LFP), Lithium Nickel Cobalt Aluminum Oxide (NCA), and Lithium Titanate (LTO). In 2022, LCO chemistry dominated the global Li-ion battery recycling market due to the wide adoption of LCO in consumer electronics and electric cars. LCO recycling technologies have become increasingly popular due to the substantial investments made in them by well-known firms like Umicore and Retriev Technologies. Furthermore, collaborations with large battery manufacturers – such as Umicore's cooperation with Samsung SDI – illustrate how dependent the market is on LCO. Glencore's stance is further reinforced by its participation in LCO recycling, which highlights the material's critical role in maintaining the lithium-ion battery market's circular economy. All of these elements work together to give LCO the upper hand in the Li-ion battery recycling market.

Insight by Recycling Process

Based on the recycling process, the global Li-ion battery recycling market is segmented into hydrometallurgical process, pyrometallurgical process, and mechanical process. In 2022, hydrometallurgical processes dominated the global Li-ion battery recycling market due to their high efficiency in extracting precious battery metals. Prominent companies like Umicore use cutting-edge hydrometallurgical processes in their recycling facilities, like the one in Hoboken, Belgium. Moreover, collaborations such as Umicore with BMW Group highlight the importance of this method and Glencore's use of the hydrometallurgical process for extracting metals from Li-ion batteries. These instances highlight hydrometallurgy's critical role in supplying the growing global need for sustainable lithium-ion battery recycling solutions, as well as its environmental friendliness and high metal recovery rates.

Insight by Source

Based on the source, the global Li-ion battery recycling market is segmented into the automotive industry, consumer electronics, and industrial. The automotive industry dominated the global Li-ion battery recycling market in 2022 due to the growing demand for electric vehicles (EVs). Companies that highlight the critical importance of the automobile industry include Tesla, which operates a Gigafactory in Nevada, and its relationships with recycling companies such as Kinsbursky Brothers. Furthermore, well-known companies like Umicore and SungEel HiTech work with major automakers like Hyundai and BMW, which further highlight the dominance of the automotive industry in the global Li-ion battery recycling market.

Insight by Recovered Metal

Based on recovered metal, the global Li-ion battery recycling market is segmented into lithium, cobalt, nickel, and other metals. Cobalt dominated the global Li-ion battery recycling market in 2022 due to its economic value and environmental benefits. It is a valuable and relatively scarce metal, prompting efficient recycling efforts. Additionally, cobalt recycling helps reduce dependence on mining, making it a priority in the Li-ion battery recycling market.

Global Lithium-Ion (Li-Ion) Battery Recycling Market Report Coverage

Industry Dynamics

Growth Drivers

Growing sales of electric vehicles

An important factor propelling the worldwide Li-ion battery recycling market is the increase in the use of electric vehicles (EVs). Automakers, battery manufacturers, and governments are making significant investments to create a sustainable EV environment. For instance, in October 2023, Stellantis partnered with Orano Electric to set up a joint venture for recycling Li-ion batteries. This ensures an additional supply of Li-ion battery metals to Stellantis. These programs highlight the growing tendency in the industry toward circular economies, which promote sustainability and lessen dependency on raw materials by reintegrating recycled materials into the production cycle.

High cost of battery metal mining

A major factor supporting the demand for Li-ion battery recycling is the high cost of mining them. The transition towards recycling and sustainable sourcing is becoming increasingly important as the cost of traditional mining increases as a result of exhausted reserves and environmental regulations. This drives the growth of Li-ion battery recycling recycles end-of-life batteries and extracts precious metals. Moreover, the high cost of mining these metals leads to surging prices of battery metals. For instance, prices of lithium carbonate, one of the refined forms of lithium that’s used in batteries, surged from around $6,500 at the beginning of 2021 to more than $80,000 in December 2022. Furthermore, the necessity for supply chain diversification is further highlighted by the geopolitical unpredictability surrounding metal-rich countries. This dynamic forces the industry to allocate resources to other sources, such as recycling, to guarantee a steady and affordable supply of essential metals for the expanding Li-ion battery market.

Challenge

Inadequate Collection and Transportation Process

Creating effective collecting and transportation methods is a major difficulty for the Li-ion battery recycling market. It is important to establish a sturdy infrastructure for the collection and transportation of spent batteries from several sources. Coordination between producers, customers, and recycling facilities is necessary for this process, which the industry is lacking at this moment. Inefficient logistics, is resulting in inefficiencies, higher expenses, and possible environmental risks from inappropriate disposal. The expansion of the global Li-ion battery recycling market depends on overcoming this obstacle, which will also guarantee a consistent supply of spent batteries for recycling and, in the end, help create a more circular and sustainable battery ecosystem. 

Geographic Overview

• North America

• Europe

• Asia Pacific (APAC)

• Rest of the world

The global Li-ion battery recycling market is segmented into North America, Europe, the Asia-Pacific, and the rest of the world region. The global Li-ion battery recycling market was dominated by the Asia-Pacific in 2022 because of its strong industrial infrastructure and rising demand for electric vehicles (EVs). China is expected to cross 30 million EV ownership by 2035 with India's registered EVs tripled in 2021-2022, triggering plans to establish thousands of EV charging facilities.

Moreover, companies are setting up battery recycling plants to meet growing demand from EV manufacturers. For instance, GEM Co. in China has built one of the biggest battery recycling facilities in the world, with the capacity to process 140,000 tons a year. Additionally, SungEel HiTech in South Korea runs a state-of-the-art recycling facility. Furthermore, Sumitomo Metal Mining Co. of Japan has made large investments in battery recycling technologies. These initiatives represent a coordinated regional effort to take advantage of the expanding electric vehicle (EV) market and establish Asia-Pacific as a leader in Li-ion battery recycling.

Competitive Insight

Umicore is one of the industry's most well-known leaders in Li-ion battery recycling. The company is headquartered in Belgium and has positioned itself as a major player in the Li-ion battery recycling market with a strong commitment to sustainability. Its Hoboken plant, one of the biggest recycling facilities in the world, is a prime example of its abilities and it processes a variety of battery types, such as lead acid, nickel-cadmium, and lithium-ion, demonstrating Umicore's extensive capabilities. Partnerships with electric vehicle manufacturers such as Tesla, where battery materials are recycled for closed-loop production, demonstrate the company's creative approach. This cooperative approach not only highlights Umicore's impact but also highlights its crucial role in determining the Li-ion battery recycling market’s sustainable future.

Fortum, a Finnish company, is a well-known player in the global Li-ion battery recycling market with a cutting-edge recycling facility in Ikaalinen, Finland, that can handle thousands of tons of batteries a year. In addition, Fortum has developed cutting-edge recycling solutions in partnership with major industry players like Northvolt and BASF. Their inventive techniques facilitate the retrieval of precious metals, adding to a battery production supply chain that is sustainable. Through calculated bets and alliances, Fortum has established itself as a major player in the global movement to make the Li-ion battery recycling market more resource- and environmentally-aware

Recent Development by Key Players

Recycle Group – a UK-based battery recycling company – announced that it has received full regulatory approval to process 22,000 tonnes of lithium-ion batteries each year at its LiBatt facility in Wolverhampton. The company says it is the UK’s first industrial-scale lithium-ion battery recycling center and it is looking to process 8,300 tonnes in its first year. The plan is to scale up to the permitted 22,000 tonnes by 2025.

Li-Cycle, a global lithium-ion battery resource recovery company, opened its first Spoke recycling facility in Europe in Sülzetal, Germany. The plant will use Li-Cycle’s patented and environmentally friendly “Generation 3” Spoke technology to process all forms of lithium-ion battery waste including full electric vehicle battery packs that won’t need to be discharged, dismantled, or go through thermal processing.

Key Players Covered in the Report

Umicore, Retriev Technologies, Glencore International, Raw Materials Company, Li-Cycle, American Manganese Inc., Battery Solutions LLC, Neometals, OnTo Technology, SungEel HiTech, Recupyl, AkkuSer Ltd., Tes-Amm India Pvt. Ltd., Eco-Bat Technologies, and Gopher Resource LLC.

The Li-ion battery recycling market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

• Source

• Automotive batteries

• Industrial batteries

• Consumer electronics batteries

• Recycling Process

• Hydrometallurgical process

• Pyrometallurgical process

• Mechanical process

• Chemistry

• Lithium Cobalt Oxide (LCO)

• Lithium Manganese Oxide (LMO)

• Lithium Nickel Manganese Cobalt Oxide (NMC)

• Lithium Iron Phosphate (LFP)

• Lithium Nickel Cobalt Aluminum Oxide (NCA)

• Lithium Titanate (LTO)

• Recovered Metals

• Lithium

• Cobalt

• Nickel

• Manganese

• Other metals

Region Covered in the Report

• North America

• U.S.

• Canada

• Mexico

• Europe

• Germany

• U.K.

• France

• Italy

• Spain

• Russia

• Rest of Europe

• Asia-Pacific (APAC)

• China

• Japan

• India

• South Korea

• Rest of Asia-Pacific

• Rest of the World

• Middle East and Africa (MEA)

• South America

Primary Research Interviews Breakdown

1.    Research Overview
        1.1. The Report Offers
        1.2. Market Coverage
            1.2.1.    By Chemistry
            1.2.2.    By Recycling Process
            1.2.3.    By Source
            1.2.4.    By Recovered Metal
            1.2.4.    By Recovered Metal
            1.2.5.    By Region
        1.3. Research Phases
            1.4. Limitations
            1.5. Market Methodology
            1.5.1.    Data Sources
                1.5.1.1. Primary Research
                1.5.1.2. Secondary Research
            1.5.2.  Methodology
                1.5.2.1. Data Exploration