The electric vehicle battery recycling market involves recycling processes that aim to reduce environmental impact and recover materials from lithium-ion batteries that have reached the end of their first application in electric vehicles. These batteries contain valuable and scarce metals, such as lithium, cobalt, nickel, and manganese, that can be recovered and used to produce new batteries. There is a growing need to establish an efficient and sustainable battery recycling system as sales of electric vehicles continue to rise globally. 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.
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. These companies are focusing on expanding their business operations to different geographies and enhancing their product portfolios through collaborations and partnerships.
There are significant opportunities for players in the market to leverage the increasing demand for recycled materials from electric vehicle batteries and invest in battery recycling facilities across major electric vehicle producing nations. Companies are also exploring opportunities to collaborate with automakers and battery manufacturers to implement closed loop recycling systems.
Globally, manufacturers are shifting towards more sustainable business practices and establishing partnerships to boost collection and recycling of end-of-life batteries. Stringent government regulations regarding the disposal of lithium-ion batteries and initiatives to promote a circular economy are also encouraging global expansion of electric vehicle battery recycling.
Market Drivers
Growing sales of Electric Vehicle Battery Recycling Market Demand worldwide due to policies promoting clean mobility is one of the major drivers of the electric vehicle battery recycling market. As more lithium-ion batteries from electric vehicles reach their end of life, it is imperative to establish efficient recycling systems to ensure the sustainable supply of scarce battery materials.
Market Restraints
High costs associated with battery recycling technologies and collection logistics can restrain the growth of the electric vehicle battery recycling market. Also, the lack of globally harmonized standards for recycling these batteries poses a challenge.
Segment Analysis
The electric vehicle battery recycling market is dominated by the lithium-ion battery segment. Lithium-ion batteries form a major part of electric vehicle batteries and account for around 70% of market share. This is because lithium-ion batteries are rechargeable, have high energy density, and deliver high voltage. They allow electric vehicles to achieve longer driving ranges on a single charge. Lead-acid batteries form another segment but account for a much lower share due to lack of energy density.
Global Analysis
The Asia Pacific region forms the fastest growing as well as the dominating regional market for electric vehicle battery recycling. This is because countries like China, Japan, and South Korea have emerged as the largest producers and consumers of electric vehicles. China especially has promoted large-scale manufacturing of EVs through subsidies and incentives. It accounts for over 40% of the global EV stock. Moreover, the availability of lithium and other battery materials in the region has encouraged battery recycling. Europe is another major regional market driven by stringent regulations around recycling of batteries and adopting circular economy practices.
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