June 18, 2024
Electric Vehicle Battery Recycling Market

The Electric Vehicle Battery Recycling Market Presents High Growth Due to Surging Adoption of Electric Vehicles

The electric vehicle battery recycling market has seen significant growth owing to the rising demand for electric vehicles across the globe. Batteries used in electric vehicles, such as lithium-ion batteries, provide high energy density and require recycling to recover valuable and scarce materials like lithium, cobalt, nickel, and graphite. The recycling of electric vehicle batteries helps reduce the dependency on virgin mined materials and lower the cost of battery production.

The global electric vehicle battery recycling market is estimated to be valued at US$ 2.77 Mn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2030

Lithium-ion batteries used in electric vehicles require proper recycling to recover high-purity materials such as nickel, cobalt, lithium, and graphite. The recycling process can recover around 95% of battery materials which reduces waste generation and lowers the carbon footprint.

Key Takeaways

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, Foodchem International Corporation, Glanbia PLC, Holista, Colltech Ltd, ESM Technologies LLC, Bergstorm Nutrition Inc., and Gelita AG.

The key opportunities in the market include growing investment by automakers in electric vehicle infrastructure, implementation of stringent emission norms that will drive electric vehicle adoption, and government incentives and subsidies for electric vehicle purchases and battery recycling processes.

The global electric vehicle battery recycling market is expected witness robust growth owing to expansion of electric vehicle fleet across regions such as Europe, North America, Asia Pacific. China, Japan, and South Korea are the top electric vehicle markets which will drive the need for large scale battery recycling facilities.

Market drivers

The surging adoption of Electric Vehicle Battery Recycling Market Growth across the world due to green initiatives by governments and rising environmental concerns is a major driver for the electric vehicle battery recycling market. Countries are aggressively promoting electric vehicle usage to meet climate targets which will require recycling a large volume of batteries reaching end-of-life. Battery recycling helps secure a reliable supply of critical EV battery materials and reduces dependence on imports.

PEST Analysis

Political: The growing focus of governments globally on promoting electric vehicles will positively impact the electric vehicle battery recycling market. Regulations pertaining to ensuring safe and environment-friendly recycling of batteries will drive more companies to enter this space and adopt recycling.

Economic: As electric vehicle sales continue rising, the need for recycling spent batteries will also increase over time. Setting up recycling infrastructure requires large investments but ensures steady raw material supply for battery manufacturing as well as creates jobs.

Social: Growing environment awareness among public as well as automakers is increasing demand for sustainable and responsible recycling practices. Customers want their EV batteries to have low carbon footprint throughout the lifecycle including after use.

Technological: Advanced sorting and separating technologies allow for high recovery rates of materials like cobalt, lithium, nickel from battery waste. Companies are innovating processes to recycle larger proportions of batteries and recover rare earth elements to manufacture new batteries.

In terms of value, the electric vehicle battery recycling market in Europe is currently concentrated in countries like Germany, Norway and Netherlands due to the high electric vehicle adoption and supporting government policies for sustainable transport. Stringent regulations regarding battery waste treatment are driving companies to invest in local recycling infrastructure to cater to the increasing flow of spent EV batteries.

Asia Pacific region is envisioned to be the fastest growing regional market for electric vehicle battery recycling attributed to rising EV sales, availability of lithium and cobalt reserves, and focus of China and other countries on developing domestic battery manufacturing supply chains. Countries like China, South Korea and Japan are incentivizing battery second life and recycling projects to strengthen their positions in the global electric vehicle and energy storage industries.

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