The global battery recycling market was valued at approximately USD 1.83 billion in 2023 and is projected to experience remarkable growth, with an expected compound annual growth rate (CAGR) of 37.6% from 2024 to 2030. This rapid expansion can be attributed to the increasing popularity of electric vehicles (EVs) and renewable energy storage systems, which are generating a higher demand for batteries. Consequently, this surge in battery demand is driving the urgent need for effective recycling solutions. Additionally, governments worldwide are enacting regulations aimed at promoting battery recycling and minimizing environmental impact, which is anticipated to further enhance industry growth.
In particular, the United States has emerged as a significant market for the recycling of lithium-ion (li-ion) batteries, bolstered by the presence of large-scale recycling facilities within the country. A notable example is Li-Cycle Corp., which recently inaugurated a new li-ion recycling facility featuring 120,000 square feet of warehousing space. This advanced facility is capable of processing 10,000 tons of battery materials annually, specifically tailored for electric vehicles. Moreover, Li-Cycle has the capacity to recycle up to 60,000 electric vehicle batteries each year, underscoring the growing infrastructure dedicated to battery recycling in the US
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Application Segmentation Insights
When examining the market based on application, the transportation segment emerged as the dominant category, capturing over 73.0% of the revenue share in 2023. Within the transportation industry, various battery types, including lithium-ion, lead-acid, and nickel metal hydride batteries, are extensively utilized. Lead-acid batteries, in particular, come in several varieties, such as flooded and valve-regulated types, and are commonly employed as automotive batteries. These batteries are favored for their robustness, low maintenance requirements, cost-effectiveness, corrosion resistance, and overall durability, which solidifies their position as the most widely used battery chemistry in the market.
The recycling process for lithium-ion batteries is crucial, as it enables the recovery of valuable materials such as lithium, cobalt, manganese, and nickel. These recovered materials are essential for the production of new lithium-ion batteries and other battery types. The widespread adoption of lithium-ion batteries in electric vehicles is primarily driven by a growing awareness of their benefits, coupled with rising fuel prices, especially in key markets like North America, Asia Pacific, and Europe. This trend is projected to significantly boost automotive battery recycling, particularly given the concentration of battery manufacturing and recycling companies operating in these regions. As the demand for sustainable solutions continues to grow, the battery recycling market is well-positioned for significant advancements in the coming years.
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