Lithium Ion Battery Recycling Market CAGR at 18.9% by 2034

Overview

New York, NY – April 15, 2025 – The global Lithium-Ion Battery Recycling Market is set for massive growth, driven by rising demand for sustainable energy solutions and the rapid adoption of electric vehicles (EVs). The market, valued at USD 10.8 billion in 2024, is projected to reach USD 61.0 billion by 2034, expanding at a strong 18.9% CAGR from 2025 to 2034.

In 2024, Active Material led the lithium-ion battery recycling market with a 63.2% share, driven by recovering valuable metals like lithium and cobalt, supporting sustainable battery production and a circular economy. Lithium Cobalt Oxide dominated in 2024 with a 32.2% share, fueled by cobalt’s value and recycling focus for consumer electronics, reducing environmental impact. Electric vehicles held a 67.2% share in 2024, driven by global EV growth and regulations, making EVs the primary source for recyclable lithium-ion batteries.

The Asia-Pacific (APAC) region dominated the lithium-ion battery recycling market, holding a 43.2% share valued at approximately USD 4.6 billion. This leadership is driven by high battery production and consumption in China, South Korea, and Japan, which have established advanced recycling systems to manage increasing end-of-life battery volumes. Strong government policies, including China’s strict disposal regulations and South Korea and Japan’s cutting-edge metal recovery technologies, bolster APAC’s position while advancing circular economy objectives.

Key Takeaways

• Lithium Ion Battery Recycling Market size is expected to be worth around USD 61.0 billion by 2033, from USD 10.8 billion in 2024, growing at a CAGR of 18.9%.
• Active Material in the lithium-ion battery recycling market held a commanding position, accounting for more than 63.20% of the market share.
• Lithium Cobalt Oxide secured a leading position in the lithium-ion battery recycling market, capturing a significant 32.20% market share.
• Electric vehicles (EVs) maintained a dominant market position in the lithium-ion battery recycling sector, capturing more than a 67.20% share.
• The hydrometallurgical process held a dominant market position in the lithium-ion battery recycling market, capturing more than a 47.20% share.
• The automotive sector held a commanding position in the lithium-ion battery recycling market, capturing more than a 76.30% share.
• Asia-Pacific (APAC) region dominated the lithium-ion battery recycling market, holding a significant 43.20% market share and valued at approximately USD 4.6 billion.

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Analyst Viewpoint

Investment Landscape in Lithium-Ion Battery Recycling

The Lithium-Ion Battery Recycling sector is rapidly gaining traction, fueled by the surge in electric vehicle (EV) adoption and the escalating demand for critical minerals like lithium, cobalt, and nickel. From an investment perspective, opportunities abound in developing advanced recycling technologies, such as hydrometallurgical and direct recycling methods, which promise higher recovery rates and environmental benefits.

Companies like Redwood Materials exemplify this potential, having secured substantial investments and partnerships to scale their operations. However, investors must also navigate risks, including high initial capital expenditures, evolving regulatory frameworks, and the need for standardized battery designs to streamline recycling processes.

The industry’s success hinges on consumer participation in recycling programs and the establishment of efficient collection infrastructures. As technological advancements continue and regulatory support strengthens, the lithium-ion battery recycling market presents a compelling opportunity for investors committed to sustainable and circular economic models.

Report Scope

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Key Market Segments

By Components

• In 2024, Active Material dominated the lithium-ion battery recycling market, holding a 63.2% share. This segment’s prominence is driven by its crucial role in recovering valuable materials like lithium, cobalt, nickel, and manganese, essential for new battery production. With the rising demand for sustainable battery solutions, recycling active materials has become vital, reinforcing their market leadership. This process supports a circular economy and minimizes the environmental impact of extracting new raw materials.

By Chemistry

• In 2024, Lithium Cobalt Oxide led the lithium-ion battery recycling market with a 32.2% share. Its dominance is fueled by cobalt’s high value and growing emphasis on recycling due to environmental and supply chain concerns. Widely used in consumer electronics like smartphones and laptops, these batteries generate significant volumes. As efforts to reduce ecological impact intensify, recovering valuable materials from Lithium Cobalt Oxide batteries underscores this segment’s strong market position.

By Source

• In 2024, electric vehicles (EVs) commanded a 67.2% share of the lithium-ion battery recycling market. This dominance reflects the global surge in EV adoption and strict regulations promoting responsible battery disposal and recycling. As more EVs reach end-of-life, the volume of recyclable batteries grows, highlighting EVs as the primary source for lithium-ion battery recycling. This trend supports material sustainability and the shift toward green energy.

By Process

• In 2024, the Hydrometallurgical process held a 47.2% share of the lithium-ion battery recycling market. Its leadership stems from its efficiency in extracting metals like lithium, cobalt, nickel, and manganese from spent batteries. Known for being more environmentally friendly than other methods, this process uses aqueous solutions to recover metals, reducing the ecological footprint. As demand for sustainable recycling grows, the hydrometallurgical process remains central to the battery industry’s circular economy.

By End User

• In 2024, the automotive sector led the lithium-ion battery recycling market with a 76.3% share. This reflects the industry’s focus on sustainability, driven by stricter environmental regulations and circular economy principles. With rising electric vehicle adoption, the need to recycle spent lithium-ion batteries grows, enabling the recovery of valuable metals and reducing the environmental impact. The automotive sector’s pivotal role continues to advance battery recycling technologies and practices.

Regional Analysis

• The Asia-Pacific (APAC) region led the lithium-ion battery recycling market, capturing a 43.2% share valued at around USD 4.6 billion. This dominance stems from extensive battery manufacturing and consumption in China, South Korea, and Japan, which are also pioneers in establishing robust recycling frameworks to handle growing volumes of end-of-life batteries. APAC’s lead is reinforced by strong government policies promoting sustainability.
• China enforces strict battery disposal and recycling regulations, while South Korea and Japan leverage advanced technologies to recover valuable metals, supporting circular economy goals. The rise of electric vehicles (EVs) and renewable energy in the region further drives demand for recycling services. As these sectors grow, so does battery waste, underscoring the need for efficient recycling to ensure environmental and supply chain sustainability.

Top Use Cases

• Electric Vehicle (EV) Battery Recycling: Recycling batteries from electric vehicles helps recover valuable materials like lithium, cobalt, and nickel. This reduces the need for new mining, lowers production costs, and supports sustainable EV growth. As EV adoption increases, efficient recycling becomes essential to manage battery waste and supply chain stability.​
• Consumer Electronics Waste Management: Old smartphones, laptops, and tablets contain lithium-ion batteries that can be recycled to extract critical metals. Proper recycling prevents environmental pollution, reduces landfill waste, and recovers resources for new battery production, contributing to a circular economy in the electronics sector.​
• Industrial Energy Storage Systems: Large-scale energy storage systems, such as those used in renewable energy projects, utilize lithium-ion batteries. Recycling these batteries at end-of-life ensures the recovery of essential materials, supports the sustainability of energy infrastructure, and mitigates the environmental impact of industrial battery disposal.​
• Second-Life Applications for Batteries: Batteries that no longer meet the performance standards for their original use can be repurposed for less demanding applications like stationary energy storage. This extends the battery’s life, delays recycling, and maximizes resource utilization before final material recovery processes are applied.​
• Supply Chain Resilience and Resource Security: Recycling lithium-ion batteries reduces dependence on imported raw materials by recovering critical elements domestically. This enhances supply chain resilience, stabilizes material costs, and supports national strategies for resource security, especially important amid global supply disruptions.

Recent Developments

1. Umicore

• Umicore has expanded its battery recycling capabilities with a new facility in Hoboken, Belgium, focusing on closed-loop recycling for EV batteries. The plant recovers lithium, cobalt, nickel. Umicore also partnered with Auto Manufacturers to ensure a sustainable supply chain. Their hydrometallurgical process is energy-efficient and minimizes waste.

2. ACCUREC Recycling GmbH

• ACCUREC specializes in mechanical and hydrometallurgical recycling, recovering cobalt, lithium, and graphite. Recently, they scaled operations to handle lithium-ion batteries. They also introduced AI-based sorting for higher purity in recovered materials. Their Germany-based facility serves European EV and electronics markets.

3. AkkuSer

• AkkuSer, a Fortum-owned company, focuses on sustainable battery recycling in Finland. Their low-CO₂ hydrometallurgical process recovers battery materials. They recently partnered with Northvolt to supply recycled materials for new batteries, supporting Europe’s green battery ecosystem.

4. American Zinc Recycling Corp

• AZR recycles lithium-ion and alkaline batteries in the U.S., extracting zinc, manganese, and lithium. They recently invested in new separation tech to improve metal recovery rates. Their Pennsylvania facility processes aid the North American battery supply chain.

5. AQUA METALS, INC.

• Aqua Metals uses AquaRefining, a water-based, emission-free recycling method, to recover lithium, nickel, and cobalt. They opened a Nevada-based facility and partnered with Energy to supply sustainable materials for U.S. battery production. Their process cuts carbon emissions.

Conclusion

Lithium-ion Battery Recycling is becoming increasingly important as the demand for electric vehicles and renewable energy storage grows. Recycling these batteries helps recover valuable materials like lithium, cobalt, and nickel, reducing the need for new mining activities. This not only conserves natural resources but also minimizes environmental pollution. Moreover, advancements in recycling technologies are making the process more efficient and cost-effective. As a result, the global lithium-ion battery recycling market is expected to experience significant growth in the coming years.

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