According to Inkwood Research, the global battery recycling market is set to project an anticipated CAGR of 8.52% during the forecast period, reaching a revenue of $16.31 billion by 2028. The base year considered for the market study is 2019. The forecasted period is between 2020 – 2028.

The global battery recycling market growth is propelled by:

• Stringent government policies and rising battery waste disposal
• Declining prices of lithium-ion battery
• Increasing adoption of electric vehicles

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Lithium is one of the most important components of electric vehicle batteries. It is the basic material required for the production of lithium-ion batteries. The recycling cost of lithium is less than the cost of mining. Moreover, recycling is less hazardous to the environment and human health than producing new lithium from mine. Therefore, the demand for battery recycling is expected to increase with the growth of electric vehicles.

Lead acid is the dominating segment in terms of revenue in the global battery recycling market, with around 61.32% market share in 2019. Spent lead-acid batteries are widely scrapped from electric bicycles and automobiles in urban areas. Lead acid batteries are the most commonly used batteries in the world on account of their reliability, cost-efficiency, safety, high capacity, and wide application. 90% of the lead acid batteries are recyclable, which was used in battery and can be reused in the production of new batteries. The recycling market also depends upon the average life cycle of the lead-acid batteries when used in various applications. The advantageous properties of these battery recycling are anticipated to drive its demand in the future.

Lithium-ion is anticipated to grow with the highest CAGR of around 9.30% during the forecast period. The availability of the lithium-ion battery in different sizes for various applications, like the small cylindrical battery for consumer electronics appliances and the large cylindrical battery for electric vehicles, is expected to drive demand for recycled lithium-ion battery. It is mainly used in electric vehicles. The growing demand for electric vehicles is further expected to fuel demand for lithium-ion batteries over the forecast period. Moreover, there are no strict regulations regarding the recycling of lithium-ion batteries. This might be in favor of recyclers as they won’t face any strict regulations in process designing.

On the other hand, the global battery recycling market growth is restricted by higher cost, lack of supply chain, and low yield in battery recycling, along with advancements in battery technologies. Although battery recycling has gained pace in western countries, the developing Asian, African, and Middle Eastern countries are yet to exploit its full battery recycling potential. The market in these regions is constrained due to several reasons, making the battery recycling market unattractive for investments. Currently, the recycling of lead-acid batteries is economical and widely undertaken. However, for other chemistries, the higher capital cost remains a matter of concern. For instance, most of the lithium-ion batteries that get recycled undergo a high-temperature melting-and extraction, or smelting, and are energy-intensive. Factors like inefficient collection infrastructure, transparency issues, technological and safety concerns, regarding the processes are also likely to act as barriers to the increased recycling of cobalt and lithium.

The report on the global battery recycling market includes the segmentation analysis of chemistry and application.

Market by Chemistry:

• Lithium-ion
• Lead acid
• Nickel
• Others

Market by Application:

• Transportation
• Consumer Electronics
• Industrial

On the basis of geography, the global battery recycling market has been segmented into four major regions:

• North America: the United States and Canada
• Europe: the United Kingdom, Germany, France, Italy, Russia, Belgium, Poland, and Rest of Europe
• Asia Pacific: China, Japan, India, South Korea, Indonesia, Thailand, Vietnam, Australia & New Zealand, and Rest of Asia Pacific
• Rest of World: Latin America, the Middle East & Africa

In terms of geography, Europe was the largest market with a market share of 36.15% in terms of revenue in 2019. The dominance of Europe is attributed to the presence of key players and stringent government regulations regarding battery recycling. The extensive manufacturing base of the automotive industry, coupled with the growing demand for industrial battery business in several countries, is expected to augment the market growth over the forecast period. Mergers & acquisitions and numerous government investments in the domestic automotive industry fuel the European battery recycling market. Regulatory inclination aimed for promoting domestic automobile production is anticipated to augment recycled battery demand.

At the same time, Asia Pacific is anticipated to be the fastest-growing region with a CAGR of xx% during the forecast period. The growth is attributed to the substantial demand from the automotive industry, which is one of the largest end users of lead acid battery across several countries. Shenzhen BAK Battery Co. Ltd. had announced its plans to set up a new lithium-ion battery recycling unit in China in November 2015. This is anticipated to boost the company’s presence in the country as a sustainable market player in the future. These trends are likely to have a positive impact on market growth over the coming years. The increased demands for lead acid battery due to the high consumption of power & electricity, and various amenities that include UPS and telecom in countries such as India, Japan, and China, is one of the major growth factors for the lead acid battery recycling market.

The market key players engaged in the global battery recycling market are:

• GS Yuasa Corporation
• Call2Recycle Inc
• Recyclex SA
• Accurec Recycling GmbH
• Aqua metals Inc
• Exide Technologies
• Others

In December 2019, Umicore and Audi successfully completed the test phase of their strategic research cooperation on sustainable battery recycling. It resulted in more than 90% of the Audi e-tron* battery nickel and cobalt that can be recovered.

Key findings of the global battery recycling market:

• Europe dominates the global battery recycling market by capturing the largest market share of around 36.15% in 2019.
• The Asia Pacific battery recycling market is anticipated to grow at the highest CAGR of xx% during the forecast period, 2020-2028.
• The growing demand for zero-emission vehicles is up surging the market.
• The growing demand for UPS systems in industries, corporate offices, hospitals, and houses, owing to rapid urbanization and industrialization in developing economies, is likely to drive the recycled battery growth in the near future.