Lithium-ion Lifepo4 Battery Recycling Market Statistics 2028

The global Lithium-ion Battery Recycling market size is projected to reach US$ 24930 million by 2028, from US$ 2543 million in 2021, at a CAGR of 38.1% during 2022-2028. Key drivers of the lithium-ion battery recycling market include strict government regulations and guidelines for proper recycling of chemical waste found in batteries.

The rising adoption of batteries in various end-user industries and demand-supply constraints will boost the growth of the lithium-ion battery recycling market.

The rising efforts for commercial battery recycling will positively impact the lithium-ion battery recycling market trends during the forecast period.

Lithium ion battery recycling market

Lithium-ion Battery Recycling Market Trends

Need for proper disposal of batteries

The demand for lithium-ion batteries is huge thanks to the rising shift toward electric vehicles and the ubiquitous presence of portable consumer electronics. The favorable government initiatives and gradual electrification of vehicle fleets due to environmental concerns have boosted the demand for these rechargeable batteries. The shift towards clean energy sources is gaining traction. However, batteries come with a host of environmental risk factors. Improper disposal in landfills leads to toxic chemical leaks. Several instances have come forward where excessive extraction from surrounding mine areas has led to polluting water bodies with fish and other livestock found dead. Miners drill holes in the salt flats to pump out salty mineral-rich brine to the surface. The holes are left open for a period of 18 months to scoop out the lithium carbonate. This uses the mixture of hydrochloric acid which again pollutes the local ecosystems, and grasslands leading to massive wastage of water. Hence various government bodies and regulatory agencies are adopting strict norms to treat the toxic materials present in battery chemistry. This will bolster the growth of the lithium-ion battery recycling market in the forthcoming years. Battery specialists and environmentalists are stressing the importance of recycling as it lowers manufacturing costs and the recovered item can be used for making newer batteries.

The growing use of batteries and supply-demand mismatch

Lithium-ion batteries are gaining popularity in several industry verticals. The dependence on oil is decreasing due to high fuel and gasoline prices. Several countries and automobile manufacturers are investing actively in battery technology in order to move rapidly toward their decarbonization goals. Cars that are dependent on Lithium-ion batteries have a high power-to-weight ratio, good energy efficiency, stable temperature performance, and low self-discharge. Marine batteries can last up to ten times longer than conventional ones and are lightweight. The charge-discharge cycle is extremely high with a lifecycle of 3000 to 5000. They require minimal maintenance and offer greater power storage capability. The batteries are cost-effective due to their long shelf life and high-efficiency output. Moreover, batteries are being used to power all electronic gadgets such as mobile phones, laptops, earbuds, tablets, etc. Such large-scale usage is hampering the production capability of batteries thereby fueling the need for recycling. This will surge the growth of the lithium-ion battery recycling market in the subsequent years. The recent geopolitical events and uncertain economic conditions have impacted the manufacturing of critical minerals like cobalt, nickel, copper, and aluminum. These minerals are essential for the production of lithium-ion batteries. Due to supply chain disruptions, the prices of the metals shot up significantly. They have stabilized a bit but the future remains grim. The shortage in the supply of critical minerals necessitates the demand for battery recycling. The recycled batteries can enable reuse of the crucial metals and reduce dependence on foreign production units amid tight supply chain growth.

Commercialization and growing infrastructure

Several public and private players are implementing significant strategies to improve the overall industry landscape. The replacement of long-standing batteries with lower efficiency provides incredible recycling opportunities. This will spur the growth of the lithium-ion battery recycling market in the upcoming years. Various extraction and recycling processes are being followed in the industry. For instance, hydrometallurgy is a promising technology for extensive meta recovery and elimination of harmful heavy metals from industrial sludge and battery chemistry. It is based on three process stages that are metal dissolution, concentration and purification, and metal recovery. The techniques that are involved include ion exchange, solvent extraction, adsorption, precipitation, and electrodeposition. Batteries made from recycled materials last longer and perform better. The cathode powder has high energy cycles. Furthermore, rapid R&D initiatives are underway that will bolster the market trends in a positive way in the future. For example, the method of froth flotation is a cost-effective way to recycle and maintain the purity of the minerals. The used batteries’ oxides are pumped into flotation tanks. Then the air is pumped with the mixers to make the solution frothy. The cathode materials sink to the bottom and the extra addition of chemical additives prevents the absorption of water thereby allowing the metal substance to float. This ensures retaining the high purity levels of the metals.

Huge upfront costs

New recycling facilities require high capital expenses and dedicated collection and supply chain centers. These will deter the growth prospects of the lithium-ion battery recycling market. There is also a lack of proper standards for the extraction of battery materials.

Lithium-ion Battery Recycling Market Share Analysis

Based on type, the LiCo02 battery segment is expected to provide lucrative opportunities for growth in the lithium-ion battery recycling market share with 65%. This is due to the large installed production of the batteries and the widescale presence of recoverable cobalt material.

Based on application, the Electric power segment will witness considerable growth during the forecast period. It is followed by automotive.

Based on region, Asia-Pacific will grow the highest with China occupying 35% of the market share due to the presence of key players, availability of battery manufacturers, favorable policies, and large installed battery capacity. Both North America and Europe come in second with a 30% share.

Lithium-ion Battery Recycling Market By Type

LiCoO2 Battery

NMC Battery

LiFePO4 Battery

Other

Lithium-ion Battery Recycling Market By Application

Mobile Batteries

Electronic Appliances Batteries

Consumer Electronics

Automotive

Marine

Industrial

Lithium-ion Battery Recycling Market 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, 

Competitive Landscape

This segment focuses on the key players operating in the industry. It underlines all the current and future activities by the prominent manufacturers. By understanding various initiatives being taken up by different players, readers will gain the ability to settle on correct business choices. The authors of the report have provided accurate revenue figures of the companies for the period 2017-2022. The clients are sure to gain the upper hand once they get hold of this report.

Lithium-ion Battery Recycling Market By Company

Umicore, GEM, Brunp Recycling, SungEel HiTech, Taisen Recycling, Batrec, Retriev Technologies, Tes-Amm(Recupyl), Duesenfeld, 4R Energy Corp, OnTo Technology, Redwood, Scope of the 

Lithium-ion Battery Recycling Market Report.

The benefits of recycling batteries

1. Conserves natural resources

Recycling batteries conserves natural resources for several reasons. For one, it takes less energy to recycle lead and other metals than mine them from the earth.

2. Creates jobs

Recycling batteries creates jobs in a variety of industries. In the United States alone, there are over 5,000 recycling facilities that employ 36,000 workers. The recycling industry is projected to grow significantly in the coming years.

3. Reduces environmental pollution

Recycling batteries reduces environmental pollution in several ways.

The global battery recycling market

The global battery recycling market is projected to grow from $ 11.8 billion in 2018 to $ 24.5 billion by 2025, at a CAGR of 11.1%. The growth of the battery recycling market is driven by increasing demand for lithium-ion batteries worldwide.

In turn, the demand for lithium-ion batteries is driven by the increasing popularity of electric vehicles. In addition, the expansion of renewable energy storage projects also contributes to the need for these batteries.

Conclusion

In conclusion, recycling batteries helps to conserve natural resources, reduces environmental pollution, and creates jobs in developing nations. As the demand for cleaner energy rises and the need to store it, recycling becomes critical.

It’s one of the few ways to keep carbon in the ground while sustaining livelihoods and protecting the environment.