Electric Vehicle Battery Recycling Market - Global Outlook & Forecast 2023-2028
The electric vehicle battery recycling market is expected to grow at a CAGR of 16.08% from 2022-2028.
MARKET TRENDS & DRIVERS
Exponential Growth of Battery Technology
Since 2000, batteries have undergone massive growth under technological innovations, resulting in lithium-ion battery development. Li-ion batteries are increasingly gaining prominence worldwide as rechargeable batteries. The expanding adoption of this battery is leading to the growth of its dominance year-over-year. Due to the rising demand for enduring battery life, several advances were made in EV batteries for extra backup capacity. This has considerably improved the performance and efficiency of electric vehicle Li-ion batteries. It has also improved energy density, charging rate, cyclability, safety, and stability. These batteries take less than an hour for a full charge and last longer. Hence, the demand for these electric vehicles (EV) batteries recycling market is growing significantly.
Rising Gasoline Prices
Gasoline prices are increasing continuously worldwide, resulting in a massive challenge for consumers and businesses. Most advanced countries have higher gasoline prices than developing economies as they major export gasoline vehicles and products. The price variation is due to diverse subsidies and taxes offered and charged by governments. Hence, the constant increase in gasoline prices in various countries drives consumers toward electric vehicles, thereby supporting electric vehicle battery recycling market growth. The U.S., Germany, the U.K., and several other European countries are among the key markets for electric vehicles. However, rising gasoline prices in these countries promote electric vehicle adoption in the industry.
Instabilities in Raw Material Pricing
Raw material costs account for approximately 50%–60% of the overall cost of production in the global electric vehicle battery recycling market. The prices of major raw materials for producing and manufacturing electric vehicle batteries and their accessories—steel, plastic, and rubber—have been volatile over the last few years. The instability of raw material prices poses a serious threat to vendor margins. Chinese manufacturers that offer cheap and high-quality EV batteries have added to the worries of prominent vendors to comply with the growing demand and changing industry standards cost-efficiently.
INSIGHTS BY PROCESS TYPE
The hydrometallurgical process segment accounted for the largest electric vehicle battery recycling market share in 2022. The large share of this segment is mainly attributed to the growing need to remove organic materials from Li-ion batteries and extract metals from ores with low metal content, increasing demand for a less expensive, scalable, flexible, low-cost, and low-environment-impacting recycling process. The growing need to extract a wide range of materials, including copper, silver, nickel, lithium, and zinc, the increasing need for selective separation of materials through chemicals, rising demand for low energy consumption, less waste, and low impact on the atmosphere are responsible for the growing demand for hydrometallurgical process segment.
Segmentation by Process Type
- Other Process
INSIGHTS BY CHEMISTRY TYPE
The global electric vehicle battery recycling market by chemistry type segments as lithium-ion batteries (Li-ion), lead-acid batteries, nickel, and other batteries. In 2022, the lithium-ion batteries segment is expected to account for the dominant segment in the global market. Lithium-ion batteries used in electric vehicles contain many valuable materials worth recovering, which are disassembled and shredded for recycling. Once shredded, the materials are sifted and categorized based on their nature and size.
Segmentation by Chemistry Type
INSIGHTS BY END USERS
The global electric vehicle battery recycling market by end-user segments into commercial vehicles and passenger cars. The commercial vehicles segment is anticipated to account for the largest global industry segment. Factors such as the rising government subsidies & tax rebates for using low-emission commuting vehicles, increasing government initiatives for the promotion of e-mobility, increasing investments to develop advanced commercial EVs, limited lifespan of batteries, and charging infrastructure are contributing to the large industry share of this segment.
Segmentation by End User
- Commercial Vehicle
- Passenger Vehicle
North America dominated the global electric vehicle battery recycling market in 2022, valued at USD 1.65 billion in 2022. The region has many established players and a high technological advancement. With advances in Li-ion battery technology, the North American EV battery recycling industry is expected to witness high growth with a substantial surge in demand for accessories for battery-related tools. The industry is driven by consumer demand for innovative products and services, and there is a significant investment in research and development to support this demand.
Segmentation by Geography
- North America
- The U.S.
- The U.K.
- South Korea
- Rest of APAC
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
The global electric vehicle battery recycling market is characterized by low market concentration and high competition among players. The present scenario drives vendors to alter and refine their unique value propositions to achieve a strong industry presence. The global electric vehicle battery recycling market is fragmented and dominated by vendors such as ACCUREC-Recycling GmbH, American Manganese Inc., Battery Solutions, and G & P Batteries Limited. These major vendors have a global presence in three major regions, namely North America, APAC, and Europe.
Key Company Profiles
- ACCUREC-Recycling GmbH
- Li-Cycle Corp.
Other Prominent Vendors
- Battery Solution
- G & P Batteries Limited
- Retriev Technologies
- SNAM Groupe
- FORTUM CORPORATION
- MTB RECYCLING
- Tata Chemicals Limited
KEY QUESTIONS ANSWERED:
1. How big is the electric vehicle battery recycling market?
2. What is the growth rate of the global electric vehicle battery recycling market?
3. Which region dominates the global electric vehicle battery recycling market share?
4. What are the significant electric vehicle battery recycling trends?
5. Who are the key players in the global electric vehicle battery recycling market?