Battery Recycling Market Expected to Reach $77.1 Billion by 2034

According to a new report published by Allied Market Research, titled, “Battery Recycling Market," The battery recycling market size was valued at $26.9 billion in 2024, and is estimated to reach $77.1 billion by 2034, growing at a CAGR of 11.2% from 2025 to 2034.

Introduction

Battery recycling is the process of recovering and reprocessing materials from used or end-of-life batteries to prevent them from being disposed of as waste and to repurpose valuable components. With the ever-growing global demand for portable electronics, electric vehicles (EVs), renewable energy storage, and backup power systems, battery consumption has surged, making sustainable management of spent batteries an urgent necessity. Recycling helps reduce the environmental impact of battery disposal, conserves natural resources by recovering metals such as lithium, cobalt, nickel, and lead, and supports the circular economy by reintegrating these materials into new battery production cycles. The battery recycling market share is expanding rapidly due to increasing environmental regulations and the push for sustainable energy solutions. Growing demand for electric vehicles and energy storage systems is further boosting this market segment. 

Battery recycling technology is advancing rapidly to recover valuable materials like lithium, cobalt, and nickel. Battery recycling involves several stages, such as collection, sorting, disassembling, material recovery, and refining of usable components. Different types of batteries require different recycling methods based on their chemical composition, such as lead-acid, nickel-cadmium (Ni-Cd), nickel-metal hydride (NiMH), lithium-ion (Li-ion), lithium[1]polymer (Li-Po), and alkaline batteries. The battery recycling market analysis reveals a surge in demand driven by rising electric vehicle adoption and stringent environmental regulations. Companies are increasingly investing in advanced recycling technologies to recover valuable materials and reduce dependence on raw mineral extraction.  Automotive battery recycling plays a vital role in reducing environmental pollution and conserving raw materials. It ensures the safe disposal and reuse of valuable metals like lead, lithium, and nickel from used vehicle batteries.

Market Dynamics

Rising electric vehicle (EV) adoption is expected to drive the battery recycling market growth. Lithium-ion batteries have a finite lifespan, typically lasting between 8 to 15 years, depending on usage and technology. As more EVs hit the roads and eventually reach the end of their operational life, the volume of spent batteries requiring proper disposal and recycling is growing rapidly. Efficient recycling systems are therefore essential to manage these end-of-life batteries safely and sustainably. Recycling prevents environmental hazards associated with improper disposal of toxic battery components and enables the recovery of valuable raw materials such as lithium, cobalt, and nickel. PM E-DRIVE Scheme, launched in September 2024 with an allocation of $1,329.27 million (₹10,900 crore), replaced the FAME-II program. It focuses on promoting electric two-wheelers, three-wheelers, e-ambulances, e-trucks, and enhancing public charging infrastructure. It excludes subsidies for electric four-wheelers and hybrid vehicles, impacting certain manufacturers. Moreover, the PM e-Bus Sewa Scheme, introduced in October 2024 with a $418.9 million (₹3,435 crore) outlay, aims to deploy over 38,000 electric buses across India, enhancing public transportation and reducing emissions.

Complex and hazardous recycling processes is expected to restraint the growth of battery recycling market. Battery recycling involves complex and often hazardous processes that present significant challenges for the battery recycling industry. Lithium-ion batteries, which dominate the market, consist of multiple layers of materials, including metals, electrolytes, and plastics, all tightly integrated to maximize performance and safety. Disassembling these batteries safely and efficiently requires specialized technology and expertise, as improper handling can lead to dangerous situations such as chemical leaks, fires, or explosions. Complex and hazardous recycling processes are expected to hamper the growth of the battery recycling market. The recycling process involves multiple expensive and time-consuming stages: collection, sorting, disassembly, and extraction of valuable materials such as lithium, cobalt, and nickel. The need for advanced technologies (e.g., hydrometallurgy, pyrometallurgy) and the safe disposal of hazardous byproducts drive up operational expenses. Battery waste management is essential for reducing environmental pollution and conserving valuable materials. Effective battery recycling ensures safe disposal and resource recovery from used batteries. Sustainable battery solutions are driving innovations in battery recycling processes. These advancements help minimize environmental impact while recovering valuable materials for reuse.

Segments Overview

The battery recycling market is segmented into chemistry, recycling process, material, source, application, and region. On the basis of chemistry, the market is divided into lead-acid based battery, lithium-ion based battery, nickel-based battery, and others. On the basis of recycling process, the battery recycling market is categorized into hydrometallurgy, pyrometallurgy, lead acid battery recycling process, and lithium-ion battery recycling process. On the basis of materials, metals, electrolytes, plastics, and others. On the basis of source, the market is classified into automotive batteries, industrial batteries, and consumer & electronic appliance batteries. On the basis of application, the market is divided into transportation, consumer electronics, industrial, and others. Based on region the market is divided into North America, Europe, Asia-Pacific, and LAMEA.

On the basis of chemistry, the lithium-ion based battery segment was the fastest growing segment in the market in 2024, and is expected to grow with a CAGR of 11.7% during the forecast period. Lithium-ion (Li-ion) battery recycling is gaining significant traction globally due to the rapid expansion of electric vehicles (EVs), portable electronics, and renewable energy storage systems. As the demand for Li-ion batteries increases, so does the volume of spent batteries, driving the need for sustainable disposal and resource recovery practices. U.S. Department of Energy (DoE) awarded a $2million grant in June 2023 to the ReCell Center at Argonne National Laboratory, funding research in rejuvenation, recycling, and reuse of Li-ion batteries.

On the basis of the recycling process, the pyrometallurgy segment was the fastest growing segment in the market in 2024, and is projected to represent a CAGR of 11.0% during the forecast period. Pyrometallurgy is one of the oldest and most established methods used for recycling batteries, particularly suitable for lithium-ion and lead-acid batteries. The process involves high-temperature thermal treatment to extract valuable metals from spent battery materials.  The battery recycling market trend is gaining momentum due to rising environmental concerns and stringent government regulations on battery disposal. Increasing adoption of electric vehicles is further accelerating growth in the battery recycling industry.

On the basis of material, the electrolyte segment was the fastest growing segment in the market, and is expected to maintain its dominance during the forecast period. For lithium-ion batteries, the electrolyte typically consists of organic solvents (such as ethylene carbonate or dimethyl carbonate) and lithium salts such as LiPF₆. These components can be toxic and flammable, presenting challenges for handling and disposal. Modern recycling methods employ thermal treatment, solvent extraction, and supercritical CO₂ processes to extract and purify useful solvents and lithium salts from spent electrolytes.

On the basis of source, the automotive batteries segment was the fastest growing segment in the market in 2024, and is anticipated to represent a CAGR of 11.4% during the forecast period. Battery recycling plays a pivotal role in the automotive sector, especially with the growing adoption of electric vehicles (EVs) and hybrid vehicles. Traditional internal combustion engine (ICE) vehicles typically use lead-acid batteries, while EVs and plug-in hybrids use lithium[1]ion (Li-ion) or nickel-metal hydride (NiMH) batteries. Li-Cycle (Canada) expanded "spoke and hub" recycling plants in North America; new hub in Rochester, NY expected to process 225,000 EV batteries annually by 2025.

On the basis of application, the transportation segment was the fastest growing segment, and and is expected to grow at a CAGR of 11.5% during the forecast period. In the public and commercial transportation sectors, the widespread adoption of electric buses and delivery vehicles results in the accumulation of significant volumes of end-of-life batteries. This growing stock of used batteries highlights the urgent need for efficient battery recycling solutions to recover valuable materials, reduce environmental impact, and support the circular economy within the electric vehicle ecosystem. In September 2023, Ascend Elements and SK ecoplant announced plans for a $65 million electric vehicle (EV) battery recycling facility in Kentucky, USA. Designed with an annual processing capacity of 24,000 tons, the plant is expected to support the region’s battery supply chain by recycling end-of-life EV batteries and production scrap. This facility is projected to complement and supply recovered materials to Ascend’s nearby $1 billion Apex-1 cathode materials manufacturing plant.

Regional Analysis

By region, Asia-Pacific is expected to be the fastest growing segment growing with the CAGR of 11.7% during the forecast period. Battery recycling in the Asia-Pacific region has been gaining significant traction due to the growing demand for electric vehicles (EVs), consumer electronics, and renewable energy storage systems. China leads the battery recycling efforts in the region, driven by its massive EV industry and government policies promoting sustainability. The Chinese government has introduced strict regulations requiring EV manufacturers to take responsibility for battery recycling. Companies such as CATL and GEM Co., Ltd. have invested in advanced recycling technologies, focusing on the recovery of valuable materials such as lithium, cobalt, and nickel.

Competitive Analysis

The major prominent players operating in the battery recycling market include Cirba Solutions, Contemporary Amperex Technology Co., Limited, Aqua Metals, Inc., ACCUREC Recycling GmbH, EnerSys, American Battery Technology Company, Teck Resources Limited, East Penn Manufacturing Company, Ecobat, and Element Resources.

Battery recycling companies play a crucial role in minimizing environmental impact by recovering valuable materials from used batteries. These companies help promote sustainability and reduce the dependence on raw material extraction.

Key Market Insights

• On the basis of chemistry, lithium-ion based battery is the fastest growing segment in the battery recycling market, growing with the CAGR of 11.7% during the forecast period.
• On the basis of recycling process, the hydrometallurgy segment was the most lucrative segment in the 2024, representing the CAGR of 11.4% during the forecast period.
• On the basis of source, the automotive batteries segment dominated the battery recycling market in 2024.
• Region wise, Asia-Pacific dominated the battery recycling market in 2024, representing the CAGR of 11.7% during the forecast period.