Battery Recycling Market is driven by Increasing adoption of Electric Vehicles
The battery recycling market comprises recycling of various spent batteries including lead-acid batteries, lithium-ion batteries, and nickel-cadmium batteries. Battery recycling helps recover lead, lithium, cobalt, and other materials from spent batteries to produce new batteries. Lead-acid batteries find widespread application in automotive industries for automobiles and other vehicles. Lithium-ion batteries are majorly used in consumer electronics such as smartphones, laptops, power tools and electric vehicles. Moreover, rising demand for sustainable energy storage has propelled the production and sales of EVs and energy storage devices, thus driving the generation of spent batteries requiring recycling.
The Global Battery Recycling Market is estimated to be valued at US$ 24.22 Bn in 2024 and is expected to exhibit a CAGR of 8.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Battery Recycling market are Call2Recycle, Exide Technologies, Gravita India Ltd., Glencore, Cirba Solutions, American Battery Technology Company, Gopher Resource, East Penn Manufacturing Co., and Aqua Metals.
Key players operating in the battery recycling market are Amperex Technology Co., Limited, Mercedes-Benz, and GEM Co., Ltd. signed a memorandum of understanding for the recycling of cobalt, nickel, manganese, and lithium metals from spent EV batteries of Mercedes-Benz and remanufacture them into battery cathode materials
Globally, Asia Pacific region dominated the Battery Recycling Market size owing to presence of large consumer electronics and automotive industries in countries like China and India. However, North America and Europe are also projected to witness significant growth in coming years attributed to rising environmental concerns. Various battery recycling plants and facilities are being established across major economies to cater to the growing need of lithium-ion battery recycling.
Market Drivers
The major market driver is the increasing demand for electric vehicles. With growing sales of EVs worldwide, the need for spent lithium-ion battery recycling is also rising in order to recover precious and scarce materials like lithium, cobalt, nickel etc. Reusing materials extracted from recycled batteries helps reduce mining requirements and promotes sustainable electric mobility.
PEST Analysis
Political: The battery recycling market is positively impacted by supportive government policies and regulations regarding the adoption of green technologies and recycling programs implemented in several countries. Many governments provide subsidies and tax benefits to recycling firms.
Economic: Global demand for batteries is increasing rapidly due to growth in automotive, electronics and power industries. Rising battery waste poses economic and environmental challenges, making recycling a lucrative business opportunity. Recycling reduces dependence on raw material imports.
Social: Large recyclers compete on collection infrastructure and recycling efficiency. Battery Recycling Market challenges and opportunities balancing the advancement of battery technology with the need for efficient recycling solutions, while addressing the competitive pressures within the industry.
The battery recycling market sees a large concentration of value in developed regions like Europe and North America owing to stringent regulations and well-established recycling infrastructure in these markets. Countries like Germany, the UK, France, the US and Canada have implemented extensive battery recycling programs at consumer levels as well as for industrial and automobile batteries. They account for over 60% of the global battery recycling market value.
The Asia Pacific region has emerged as the fastest growing market for battery recycling. Rapid growth of electronics and EV industries in China, Japan, South Korea and India has led to a steep rise in battery waste generation. Underdeveloped recycling infrastructure initially posed challenges but investments are now being made to develop formal collection and recycling systems. The region's market value is expected to double between 2024-2031.
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