Electric Vehicle Battery Recycling Market

Electric Vehicle Battery Recycling Market Highlights

The global electric vehicle battery recycling market is expected to cross a value of USD 3.57 billion by the end of 2032. The market was valued at USD 0.58 billion in 2023 and is expected to expand at a CAGR of 36.5% between 2024-2032.

• Over the mid-term, the growing attention on lowering the dependence on the usage of natural resources for production of EV batteries is the primary factor anticipated to drive the global electric vehicle battery recycling market.
• The unavailability of a standardized process for recycling EV batteries is a major factor to challenge the market growth.
• The Asia Pacific electric vehicle battery recycling market is projected to dominate the global market.

Electric Vehicle Battery Recycling Market Outlook

The process of recovering and reusing materials from end-of-life batteries or used batteries that are used in electric vehicles is commonly referred to as electric vehicle battery recycling process. With this process, valuable materials, such as lithium, cobalt, and nickel among others are recovered and recycled to lower the environmental impact associated with the mining of new raw materials that are used in battery production.

Our experts at KD Market Insights predicts that the growing attention of battery manufacturers on lowering the dependence on the usage of natural resources for production of EV batteries is one of the key drivers expected to contribute to the market growth during the forecast period. The manufacturers of electric vehicles have recently been facing the lithium shortage bubble. According to our think-tank experts, about 8kgs of lithium is contained in a single electric car. While the global production of lithium totaled close to a million ton in 2021, the reserve of lithium, according to the statistics by the United States Geological Survey, stood at around 22 million tons. With this, the availability of lithium may last only for the next two decades, raising a crunch in the availability of lithium. This, as a result, has raised the need for recycling of electric vehicle batteries, so as to limit the use of newly mined lithium. A.C.C.U.R.E.C Recycling GmbH, American Manganese Inc., and Battery Solutions are some of the significant parties in the global market for electric vehicle battery recycling.

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Electric Vehicle Battery Recycling Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global electric vehicle battery recycling market are:

• Surge in Sales of Electric Vehicles: Another key factor expected to drive the growth of the electric vehicle battery recycling market is the growing sales of electric vehicles globally. According to our researchers at KD Market Insights, the electric vehicle ecosystem industry is poised to touch a revenue of USD 910.3 Billion by 2032, registering a CAGR of 15.5% during the forecast period. While, the International Energy Agency (IEA), predicts that over the course of 5 years, i.e., 2017 to 2022, the sales of EVs reached 10 million from 1 million. It is also expected that the sales of EVs would touch 59.25 million by holding a share of 67% of overall vehicle sales in the year 2030, as per the predictions by the IEA. The increasing sales of electric vehicles would create an opportunity for the growing demand for EV batteries, in turn, raising the need or EV battery recycling.
• Growing Focus on Driving Sustainability: The growth in the mining of natural raw materials for use in different products is driving a major concern amongst the regulatory bodies globally. Although, this phenomenon is applicable for almost each and every other industry, and the EV industry is also no more an exception. The rise in concern for the depletion of naturally available raw materials has raised the need to find out alternate ways and drive sustainability. Hence, the government of nations globally, along with the regulatory bodies are implementing measures to address the environmental impact of batteries by promoting sustainable practices that focuses on battery recycling, reduction of wastes, and creating a circular economy for a conducive environment.

Which Probable Factors Could Hamper the Growing Electric Vehicle Battery Recycling Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of electric vehicle battery recycling are:

• Concerns for Proper Handling of Hazardous Materials: The recycling of electric vehicle batteries involves handling potentially hazardous materials, including toxic materials, such as nickel, cobalt, lithium, and manganese, in addition to other toxic gases. The high concentrations of these chemicals causes great harm to the human nervous system and endocrine system. Hence, the safety and environmental concerns related to the extraction, processing, and disposal of materials from batteries is expected to pose a significant challenge to the market growth.
• Unavailability of Standardized Process for Recycling EV Batteries: Several nations worldwide yet do not have a standardized process set by the regulatory bodies for recycling the EV batteries. A standardized approach to recycling procedures, as well as clear regulations and guidelines, facilitates a more streamlined and consistent recycling process. Hence, its unavailability may possess a massive threat to the growth of the market during the forecast period.

How is the Global Electric Vehicle Battery Recycling Market Segmented?

Our experts at KD Market Insights have segmented the global electric vehicle battery recycling market as:

What are the Probable Factors Influencing the Asia Pacific Electric Vehicle Battery Recycling Market Forecast?

The Asia Pacific electric vehicle battery recycling market is majorly driven by the expanding sales of e-vehicles in the region along with the growing focus of the government across the Asia Pacific on implementing policies and regulations that focus on supporting sustainable practices for addressing the growing environmental concerns. Besides this, the market expansion in the region can also be attributed to the ongoing advancements in battery recycling technologies, and the heightened focus on creating sustainable material supply chains. In addition to this, the rise in investments from both the private and public sectors by forming strategic partnerships between recycling companies, automotive manufacturers, and technology firms is also expected to create numerous opportunities for market growth.

As per our analysts at KD Market Insights, the following five players lead the Asia Pacific electric vehicle battery recycling market growth:

• GEM Co., Ltd.
• SungEel HiTech
• Umicore N.V.
• Ecopro BM Co., Ltd.
• Retriev Technologies

Which Key Players Top the Global Electric Vehicle Battery Recycling Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global electric vehicle battery recycling market facilitates our readers in identifying their closest competitors. the manufacturers who are associated with electric vehicle battery recycling market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global electric vehicle battery recycling market share:

• A.C.C.U.R.E.C Recycling GmbH
• American Manganese Inc.
• Battery Solutions
• Li-cycle Corp.
• G & P Batteries
• Recupyl
• Retriev Technologies
• Australian Battery Recycling Initiative
• Snam S.p.A
• Umicore N.VN

What are the Recent Developments Observed in the Electric Vehicle Battery Recycling Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global electric vehicle battery recycling market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, Stellantis N.V. recently stated that it has signed a memorandum of understanding (MoU) with Orano for establishing a joint venture in which the latter would support the sustainable practice of Stellantis for managing and recycling the materials of EV batteries.

Further, Mahindra Last Mile Mobility Limited (MLMML), the electric-3 wheeler manufacturing subsidiary of Mahindra & Mahindra, has announced a collaboration with one of the global leaders of lithium-ion battery recycling and e-waste management agency, Attero. The collaboration is aimed at recycling of EV batteries and to meet its unwavering pursuit of net-zero emissions and sustainable practices.