April 12, 2024
Electric Vehicle Battery Recycling Market

Electric Vehicle Battery Recycling Market Is Primed by Growing EV Sales

The electric vehicle battery recycling market encompasses products and services required for reusing and reprocessing spent lithium-ion batteries from electric vehicles. These batteries contain valuable and scarce materials like lithium, cobalt, nickel, and manganese which can be recovered and reused, thereby promoting sustainability. The recycling process involves disassembling battery packs, separating materials, and transforming recovered chemicals into battery-grade materials. This facilitates the reduction of waste and dependence on mining activities.

The Global Electric Vehicle Battery Recycling Market is estimated to be valued at US$ 2.77 Billion in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Electric Vehicle Battery Recycling are Synutra Inc., Darling Ingredients Inc., Archer Daniels Midland Company, BASF SE, Koninklijke DSM NV, Foodchem International Corporation, Glanbia PLC, Holista, Colltech Ltd, ESM Technologies LLC, Bergstorm Nutrition Inc., and Gelita AG. The growth in electric vehicle sales is driving higher volumes of spent batteries, thereby boosting the need for effective recycling processes. Global EV battery sales are projected to grow at a CAGR of over 30% until 2030, thus expanding the electric vehicle battery recycling market size. Several governments are implementing regulations to mandate EV battery recycling rates of 50-70% by 2030, encouraging market players to expand their recycling infrastructure internationally.

Market key trends

One of the major trends in the Electric Vehicle Battery Recycling Market Demand  is the preference for closed loop recycling processes. Here, materials recovered from battery recycling are purified and reintroduced into new battery manufacturing with high resource efficiency. This novel trend helps reduce costs as well as dependency on raw material imports. Battery makers are actively partnering with recyclers to facilitate closed loop recycling programs. As the market matures, several advancements in recycling technologies such as hydrometallurgy, pyrometallurgy, and direct recycling are also expected to rise.

Porter’s Analysis

Threat of new entrants: Battery recycling is a complex process requiring large investments in R&D, infrastructure and machinery. This acts as a barrier for new companies.

Bargaining power of buyers: There are only a few large automobile manufacturers who can influence prices of recycled materials. Buyers have moderate bargaining power.

Bargaining power of suppliers: A small number of companies globally control the supply of raw materials like cobalt, lithium and nickel used in batteries. This gives them significant influence over prices.

Threat of new substitutes: There is ongoing R&D to develop new battery technologies however lithium ion batteries will dominate the transportation sector for over a decade providing less threat from substitutes.

Competitive rivalry: With increasing battery waste, companies are entering the recycling business leading to more competition. Established recycling companies are adopting new recycling technologies to gain competitive advantage.

Geographical Regions

Currently, Europe accounts for over 30% of the global electric vehicle battery recycling market value owing to stringent rules mandating battery recycling. Countries like Germany, Norway and Netherlands have well established reverse supply chains for recycling.

The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to rising electric vehicle sales and government initiatives forbattery recycling infrastrucutre in major countries like China and Japan. Rapid establishment of lithium ion battery gigafactories in countries will further drive the regional market.

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