Battery Recycling Market size is set to grow by USD 11.34 billion from 2024-2028, Widening lithium supply-demand gap boost the market, Technavio

NEW YORK, Aug. 13, 2024 /PRNewswire/ -- The global battery recycling market size is estimated to grow by USD 11.34 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 11.53%  during the forecast period. Widening lithium supply-demand gap is driving market growth, with a trend towards rising stewardship collaboration for battery recycling. However, lead contamination in environment  poses a challenge. Key market players include Accurec Recycling GmbH, Aqua Metals Inc., Battery Solutions LLC, Call2Recycle Inc., Contemporary Amperex Technology Co. Ltd., East Penn Manufacturing Co. Inc., Ecobat LLC, EnerSys, ENGITEC TECHNOLOGIES SPA, Exide Industries Ltd., Fortum Oyj, GEM Co. Ltd., Gopher Resource LLC, Gravita India Ltd., Li Cycle Holdings Corp., Onto Technology LLC, Raw Materials Co. Inc., SungEel Hi-Tech Co. Ltd., Terrapure Environmental, and Umicore SA.

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Market Driver

The global battery recycling market is gaining momentum due to the depletion of metal reserves and the environmental impact of discarded batteries. All stakeholders, including governments, battery manufacturers, businesses, public agencies, and consumers, must collaborate to address this issue. One such trend is stewardship collaboration, which brings these entities together to manage the end-of-life batteries. Manufacturers are required to provide convenient collection methods, such as extended producer responsibility (EPR) programs, and maintain producer funding to reduce government costs and increase the collection of recycled batteries. Companies offer prepaid shipping containers and collection boxes to local businesses for consumers to drop off their discarded batteries. Stewardship collaborations are increasingly popular in North America and Australia. For instance, Call2Recycle, a rechargeable battery stewardship organization, partners with the Corporation of Battery Recycling (CBR) for environmentally sustainable primary battery recycling in the US and Canada. The company offers free battery and cell phone recycling through its network of collection locations. In Australia, the Australian Battery Recycling Initiative (ABRI) is establishing a stewardship program for effective battery recycling. The Battery Stewardship Council (BSC) was formed in May 2018 to design the stewardship scheme in the country. These collaborations raise awareness about the importance of recycling both primary and secondary batteries, driving the growth of the global battery recycling market. 

The battery recycling market is experiencing significant growth due to increasing costs in the supply chain for essential minerals like lithium and cobalt in lithium-ion batteries used in automobiles and renewable energy industries. Technological innovations in battery recycling, such as those by Criba and LOHUM Cleantech, are reducing logistics costs and improving yield. Lithium-ion batteries in electric cars, PHEVs, and energy storage systems are driving demand. International Energy Agency forecasts a tripling of electric vehicle battery production by 2030, creating a need for effective recycling solutions. Companies like BEEAH, ACE Green Recycling, and EPA guidelines focus on handling hazardous materials like heavy metals, acids, mercury, and lead in spent batteries. The market for cathode active materials, hydride batteries, and other battery technologies is expanding, requiring infrastructure investments. The energy density, charging capabilities, and maintenance requirements of these batteries necessitate proper recycling to minimize emissions and reduce reliance on hydrocarbons as clean fuel energy. 

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Market Challenges

• The lead-acid battery recycling market holds significant business potential due to the high toxicity and environmental hazards associated with lead. When a lead-acid battery reaches the end of its life, it is crucial to ensure proper collection and eco-friendly recycling to prevent environmental contamination. A single misplaced battery in a municipal solid waste (MSW) collection system can contaminate up to 25 tons of waste, rendering organic resources recovery irrelevant. Lead-acid batteries, composed of lead plates submerged in sulfuric acid with a plastic coating, are rechargeable and have a standard configuration. Their recycling process is essential as it keeps batteries out of landfills, preventing lead leaching into groundwater and reducing energy consumption in producing new lead. However, lead-acid battery recycling, if not carried out correctly, can pose risks to human health and the environment. Improper disposal can lead to soil and water contamination, affecting both the population and ecosystem. The toxic metal lead, present in high quantities in these batteries, can cause severe health issues, including convulsions, comas, mental illness, and even death, especially in children. The recycling process reduces the amount of solid waste generated from disposable batteries, but the presence of lead-oxide toxins necessitates proper handling and disposal. The recycling of lead-acid batteries is often carried out in populated areas with limited pollution controls, increasing the risk of exposure to the population. To mitigate these risks, it is essential to invest in advanced recycling technologies and stringent regulations to ensure the safe and eco-friendly disposal of lead-acid batteries. This approach will not only protect the environment and public health but also contribute to the growth of the global battery recycling market.
• The battery recycling market faces several challenges in the context of evolving battery technologies for electric vehicles and renewable energy storage. EPA guidelines require strict handling of spent batteries due to hazardous materials like acids, heavy metals such as nickel, cobalt, lithium, mercury, and lead. These batteries, including lithium-ion, acid, and sodium-sulfur types, present unique challenges due to energy density, charging capabilities, and maintenance requirements. Industrialization and urbanization increase battery waste disposal, particularly from automotive and industrial sectors. Renewable energy sectors, like solar and wind power, also contribute to the growing battery waste. Regulations are essential to ensure safe and efficient battery recycling. However, a dearth of technologies and the complexity of battery chemistries pose challenges. Companies like Element Resources, Umicore, Redwood Materials, and others are leading the way in recycling technologies for various battery types, including nickel metal hydride, lithium-ion, and lead-acid batteries. Extrusion and nickel metal processes are used to recover valuable materials, while manganese and plastics are handled through different methods. Despite these efforts, addressing chemical leakage and toxic substance risks remains a priority.

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Segment Overview 

This battery recycling market report extensively covers market segmentation by  

1. Source 
• 1.1 Automotive
• 1.2 Electronic appliance
• 1.3 Others
2. Battery Type
• 2.1 Lead-acid
• 2.2 Lithium
• 2.3 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Automotive-  The battery recycling market is growing significantly due to increasing environmental concerns and the value of recovered materials. Companies are investing in advanced technologies to extract metals like lithium, cobalt, and nickel from used batteries. This not only reduces the need for raw material extraction but also lowers the carbon footprint. The recycled batteries are then sold back into the market for reuse or repurposing, creating a circular economy. This trend is expected to continue as governments and businesses prioritize sustainability and resource efficiency.

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Learn and explore more about Technavio's in-depth research reports

The Global Automotive Lead-Acid Battery Market remains vital due to its cost-effectiveness and widespread use in traditional vehicles, with steady growth driven by increasing vehicle production and demand for start-stop systems. Meanwhile, the Global Electric Vehicle (EV) Battery Market is rapidly expanding, fueled by the surge in EV adoption, advancements in battery technology, and government incentives for clean energy. Lithium-ion batteries dominate the EV market, but innovations are also emerging in solid-state batteries, promising longer range and faster charging times.

Research Analysis

The Battery Recycling Market is witnessing significant growth due to increasing environmental concerns and the need to extract valuable resources from spent batteries. EPA guidelines are driving the adoption of battery recycling to minimize the environmental impact of battery waste disposal. Electric vehicles and various battery technologies, such as Li-ion batteries used in UPS systems, are major contributors to the market. Energy density and charging capabilities are crucial factors influencing the recycling process. Spent batteries contain hazardous materials like acids, heavy metals, mercury, lead, and toxic substances, making their safe disposal a challenge. Technological innovations, including chemistry, plastics extrusion, and the recovery of nickel metal and manganese, are key to maximizing yield and reducing costs in the battery recycling supply chain. Federal regulations and the rising costs of raw materials are further boosting the market.

Market Research Overview

The battery recycling market is experiencing significant growth due to the increasing demand for electric vehicles (EVs) and renewable energy storage. EPA guidelines are in place to ensure the proper disposal of spent batteries, which contain hazardous materials such as acids, heavy metals like nickel, cobalt, and lithium, and toxic substances like mercury and lead. These batteries, including lithium-ion, acid, sodium-sulfur, and hydride batteries, require careful handling to prevent chemical leakage and minimize environmental impact. The renewable energy sector, particularly solar and wind power, is driving the market, as energy storage solutions become essential for grid stability. However, the lack of technologies for recycling certain battery chemistries, such as lithium-ion batteries, presents a challenge. Battery recycling is crucial for reducing the environmental impact of battery waste disposal and minimizing the costs associated with supply chain logistics and the yield of technological innovations. Companies are investing in research and development to create closed-loop recycling systems for essential minerals like nickel, manganese, and cobalt, used in batteries and other electronic gadgets. Regulations and infrastructure are key factors in the battery recycling market. Governments and organizations are implementing policies to encourage battery recycling, and companies are investing in infrastructure to collect and process battery waste. For instance, Criba, LOHUM Cleantech, BEEAH, ACE Green Recycling, and others are leading the way in this field. The battery recycling market is expected to grow as the demand for energy storage and renewable energy industries continues to rise. However, challenges remain, including the high costs of battery recycling and the need for technological innovations to improve yield and reduce emissions. In conclusion, the battery recycling market is an essential component of the circular economy, and its growth is driven by the increasing demand for renewable energy storage and electric vehicles. Proper handling and recycling of spent batteries are crucial for minimizing environmental impact and reducing the costs associated with supply chain logistics and the production of new batteries. Companies and governments are investing in research and development and infrastructure to address these challenges and create a closed-loop recycling system for essential minerals and battery chemistries.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Source
• Automotive
• Electronic Appliance
• Others
• Battery Type
• Lead-acid
• Lithium
• Others
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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