Global Electric Vehicle Battery Recycling Market Insights and Forecast to 2028

Electric Vehicle Battery Recycling Market Statistics 2028

The global Electric Vehicle Battery Recycling market size is projected to reach USD 2426.4 million by 2028, from USD 1176.3 million in 2021, at a CAGR of 10.8% during 2022-2028.

The demand for zero-emission cars is rising, there is a greater need for recycled goods and materials, and there is an increase in employment, all of which contribute to the development of the electric vehicle battery recycling market. However, the stated market growth is constrained by the reuse of EV batteries and the expensive setup costs for recycling facilities. Additionally, there is a market opportunity for recycling batteries used in electric vehicles due to the large recycling gap and subsidies to promote battery recycling.

Electric Vehicle Battery Recycling Market Trends

Because the resources are scarce and expensive, battery manufacturers are having difficulty managing the supply of the raw materials used to create these battery packs. As a consequence, batteries that have reached the end of their useful lives are recycled. Due to the shortage of metal components like nickel, cobalt, and others, the procedure removes the essential components from such batteries so they can be used in other applications. This further supports the growth of the Electric Vehicle Battery Recycling market.

There is now a significant market for electric cars due to rising global worries about the adverse effects of climate change and alarming pollution levels found in major cities. Due to the recent increase in the price of gasoline and diesel, there is a greater demand for fuel-efficient cars. Additionally, this leads to the decline of fossil fuel reserves and an increase in businesses' propensity to maximize profit from these oil reserves. Therefore, these factors create a need for cutting-edge fuel-efficient technology, which in turn causes a surge in demand for travel-related electrically powered cars, which in turn creates demand for the batteries. This factor is expected to drive the growth of the Electric Vehicle Battery Recycling market.  

After examining the potential demand for recycled raw materials like nickel, cobalt, lithium, and others, various businesses are developing efficient methods to recycle lithium-ion batteries in an optimized way. For instance, Kemetco and American Manganese are collaborating to create a low-cost, environmentally friendly recycling system for lithium-ion batteries that is scalable and commercialized. This factor is expected to drive the growth of the Electric Vehicle Battery Recycling market.

Electric Vehicle Battery Recycling Market Share Anaysis

The region with the largest revenue share in 2021 was Europe. The European Union's recycling efficiency standards are expected to lead to a rise in the recycling rate of batteries.

Segment By Type

• Nickel–cadmium Battery
• nickel–metal Hydride Battery
• lithium-ion Battery
• lithium Polymer Battery
• lead-acid Cell

Segment By Application

• Automotive Enterprises
• Battery Enterprises
• Other

Segment By Company

• Umicore
• Tesla
• Nissan
• Toyota
• BMW
• Honda
• Li-Cycle
• BYD
• Ford
• Hyundai/Kia

Segment By Region

• North America
• United States
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Russia
• Nordic Countries
• Rest of Europe
• Asia-Pacific
• China
• Japan
• South Korea
• Southeast Asia
• India
• Australia
• Rest of Asia
• Latin America
• Mexico
• Brazil
• Rest of Latin America
• Middle East & Africa
• Turkey
• Saudi Arabia
• UAE
• Rest of MEA