The electric vehicle battery recycling market has been gaining significant traction over the past few years owing to growing environmental concerns regarding battery waste disposal and stringent regulations aimed at promoting recycling practices. Lithium-ion batteries used in electric vehicles need to be recycled as they contain valuable and limited resources like cobalt, nickel, lithium, and graphite as well as hazardous materials like lithium, cobalt, and electrolytes. With rising EV adoption worldwide, EV battery waste volumes are projected to increase substantially over the next decade, propelling the need for large-scale battery recycling facilities and infrastructure. The global electric vehicle battery recycling market involves the collection, transportation and processing of retired lithium-ion batteries to recover materials such as cobalt, nickel, lithium, and manganese. The market also consists of battery dismantling and segregation of battery components, metals and plastic recovery as well as rebuilding processes to produce new batteries. Electric vehicles reduce emissions and depend on recyclable batteries for power.

The global Electric Vehicle Battery Recycling Market is estimated to be valued at Us$ 2.04 Bn In 2024 and is expected to exhibit a CAGR Of 6.3% over the forecast period 2024 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessed in the electric vehicle battery recycling market is the increasing focus on developing closed loop recycling processes to recover a higher percentage of materials from spent lithium-ion batteries. This involves employing hydrometallurgical or pyrometallurgical techniques to effectively extract various metals from the batteries while ensuring minimum environmental pollution. Battery recycling companies are investing in R&D activities to improve recovery rates of valuable battery materials, especially cobalt which accounts for over 50% of the total cost of an EV battery. Adoption of closed loop recycling will help reduce costs associated with material extraction from primary sources and provide a sustainable solution for battery waste management over the long run.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the electric vehicle battery recycling market is moderate. Setting up recycling facilities requires significant investments. However, as environmental regulations become more stringent around the recycling of EV batteries and as the EV market continues to grow, there will be more opportunities for new players.

Bargaining power of buyers: The bargaining power of buyers in the electric vehicle battery recycling market is high. As awareness around sustainability grows, OEMs and component manufacturers may prefer sourcing materials from recycled batteries and put pressure on prices.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While metals and materials suppliers have some pricing power, the recycling industry is consolidating and large recyclers are in a better position to negotiate prices.

Threat of new substitutes: The threat of substitutes is low. Currently, there are no good alternatives to recycling spent lithium-ion batteries. As EV adoption increases, recycling will play a key role in ensuring sustainable supply of critical materials.

Competitive rivalry: The competitive rivalry in the electric vehicle battery recycling market is high. Major players like Synutra, Darling Ingredients, Archer Daniels Midland etc. are focusing on expanding collection and recycling capabilities to capture more value from the recycling chain.

Key Takeaways

The Global Electric Vehicle Battery Recycling Market Demand is expected to witness high growth. Driven by stringent environmental norms and imminent EV battery waste, recycling is gaining prominence as a means to ensure security of supply for battery materials and create a circular economy.

Regional analysis:

Asia Pacific currently dominates the global market due to high adoption of EVs and efforts by governments like China to build local recycling infrastructure. Europe is also expanding its recycling capacity on back of ambitious climate targets to phase out ICE vehicles.

Key players:

Key players operating in the electric vehicle battery recycling market are Synutra Inc., Darling Ingredients Inc., Archer Daniels Midland Company, BASF SE, Koninklijke DSM NV. Major players are investing in collection programs, developing hydrometallurgical and pyrometallurgical processes to recover critical battery materials like nickel, cobalt, lithium with high purity and resource efficiency.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it