by Market Overview:
Electric Vehicle Battery Recycling involves collecting and processing end-of-life or damaged batteries from electric vehicles to recover materials such as lithium, cobalt, nickel, and manganese. These materials are then reused in the manufacturing of new batteries. Recycling helps conserve natural resources and reduces dependency on mining activities. The growing demand and sales of EVs is generating a steady stream of end-of-life batteries that require efficient recycling solutions.
Market Dynamics:
Increasing sales of electric vehicles driven by stringent emission norms and favorable government policies is a major driver for the electric vehicle battery recycling market. For instance, according to International Energy Agency (IEA), the global EV stock reached 10 million in 2020, with over 3 million electric cars added globally. Another driver is the rising materials costs and supply risks. Recycling helps address these issues by recovering precious and scarce materials like cobalt, lithium, and nickel from spent batteries. The two main drivers of the market are rising adoption of EVs worldwide and scarcity of raw materials used in EV batteries. Recycling helps ensure steady supply of these materials and reduces battery production costs.
The global Electric Vehicle Battery Recycling Market Demand is estimated to be valued at US$ 2.4 Bn in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The electric vehicle battery recycling market can be segmented based on battery type into lithium-ion battery and lead-acid battery. The lithium-ion battery segment dominates the market currently due to the rising adoption of lithium-ion batteries in electric vehicles. Lithium-ion batteries offer higher energy density and longer lifespan as compared to lead-acid batteries, making them a preferred choice for electric vehicles.
PEST Analysis
Political: Stringent government regulations regarding recycling of lead and disposal of used batteries is boosting the electric vehicle battery recycling market. Many countries have formulated policies to promote recycling of batteries used in electric vehicles.
Economic: High cost of production and procurement of raw materials for manufacturing new batteries is making battery recycling an economically viable option. Recycled materials help reduce production costs.
Social: Growing environmental concerns regarding proper disposal of used electric vehicle batteries is positively impacting the market. People are more aware and willing to adopt battery recycling practices.
Technological: Advanced sorting and separation technologies enable higher resource recovery from spent batteries. Technologies like hydrometallurgy and pyrometallurgy facilitate efficient recycling of battery materials.
Key Takeaways
The global electric vehicle battery recycling market is expected to witness high growth, exhibiting 28% CAGR over the forecast period, due to increasing environmental concerns regarding proper disposal of spent electric vehicle batteries.
The Asia Pacific region dominates the market currently owing to the presence of major automobile markets like China and Japan in the region. Rising electric vehicles sales and absence of developed recycling infrastructure in the region drives the need for battery recycling.
Key players operating in the electric vehicle battery recycling market are Accurec Recycling GmbH, American Manganese Inc. Battery Solutions, Li-Cycle Corp., G & P Batteries, Recupyl, Retriev Technologies, Sitrasa, Floridienne, and Umicore. Players are investing in expanding recycling facilities and adopting innovative recycling technologies to recover more materials from spent batteries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
