by The electric vehicle battery recycling market has gained significance recently, owing to the large-scale deployment of lithium-ion batteries in various industries. Lithium-ion batteries are considered one of the most viable options for powering electric vehicles due to their high energy density and lower self-discharge rate when compared to lead-acid and nickel-metal hydride batteries. However, the disposal and recycling of spent lithium-ion batteries from electric vehicles pose technological and economic challenges. Improper disposal of lithium-ion batteries from electric vehicles can have adverse effects on the environment as these batteries contain valuable and scarce materials like cobalt, lithium, nickel, and manganese along with hazardous materials.
The global electric vehicle battery recycling market is estimated to be valued at US$ 2.4 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the key trends gaining significance in the electric vehicle battery recycling market is regulatory support for waste management reforms by governments across the globe to ensure environmentally-safe recycling and disposal of spent lithium-ion batteries from electric vehicles. Various countries and regions have established guidelines and policies mandating electric vehicle manufacturers to set up collection and recycling infrastructure for spent lithium-ion batteries. For instance, the European Union’s Battery Directive aims to minimize the environmental impact of batteries and encourages their reuse and recycling. Similarly, governments in the U.S., China, and Japan are promoting research and development activities for sustainable battery recycling technologies to extract valuable materials from spent lithium-ion batteries and promote a circular economy. This growing regulatory emphasis on battery recycling is expected to drive the electric vehicle battery recycling market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the electric vehicle battery recycling market is moderate as battery recycling requires significant capital expenditure for setting up the recycling facilities and developing technological capabilities.
Bargaining power of buyers: The bargaining power of buyers in the electric vehicle battery recycling market is high as buyers can demand lower prices and put pressure on margins due to increasing competition among recycling players.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as electric vehicle battery recycling market depends on a select few suppliers of lithium-ion batteries from OEMs for recycling.
Threat of new substitutes: The threat of new substitutes is low as electric vehicle battery recycling is the most viable option currently available with no direct substitute.
Competitive rivalry: The competitive rivalry in the electric vehicle battery recycling market is high owing to the presence of a fair number of players focusing on expanding their geographic presence and developing innovative recycling processes.
Key Takeaways
The Global Electric Vehicle Battery Recycling Market Growth is expected to witness high supported by increasing sales of electric vehicles worldwide along with stringent regulations pertaining to reuse and recycling of lithium-ion batteries.
Regional analysis: North America region dominates the global electric vehicle battery recycling market currently owing to supportive regulatory framework and presence of major automakers in the US and Canada. However, Asia Pacific region is expected to witness fastest growth in recycling due to rapidly growing electric vehicle sales in China.
Key players: Key players operating in the electric vehicle battery recycling market are ICF International, Inc., A.T. Kearney, Inc., McKinsey & Company, Inc., PricewaterhouseCoopers LLP (PwC), ERM Group, Inc., KPMG International, Coastal Risk Consulting, LLC, CH2M HILL Companies, Ltd. (Jacobs Engineering Group), Deloitte LLP, Ramboll Environ, Inc. These players are focusing on capacity expansion and partnerships with automakers to gain higher recyclable volumes.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
