Battery Scrap Market Expected to Reach $83.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Battery Scrap Market," The battery scrap market was valued at $35.2 billion in 2022, and is estimated to reach $83.7 billion by 2032, growing at a CAGR of 9.1% from 2023 to 2032.

Battery scrap, often referred to as "battery recycling scrap" or "used battery scrap," specifically refers to discarded or used batteries that are no longer functional and are collected for recycling purposes. Battery recycling helps conserve natural resources, reduces the environmental impact of hazardous materials, and minimizes the need for new mining or extraction. It is important to dispose batteries properly by recycling them at designated collection points or facilities, as improper disposal can lead to pollution and harm the environment.

The global shift toward cleaner and more sustainable energy sources, including electrification and renewable energy, drives the demand for batteries and, consequently, the recycling of used batteries. However, challenges such as handling hazardous materials and recycling costs act as a major restraint for the battery scrap market growth. Moreover, rise in demand for electric vehicles (EVs) and energy storage is anticipated to offer battery scrap market opportunities for the development in the coming years.

The battery scrap market scope is segmented on the basis of product type, source, end use, and region. By product type, the market is categorized into lead acid, lithium-ion, and others. By source, the battery scrap market analysis is classified into electric vehicles, consumer electronics, power tools, and others. By end use, the market is categorized into material extraction, reuse, disposal, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Based on product type, the lithium-ion segment held the highest market share in 2022, accounting for nearly half of the global battery scrap market share in terms of revenue, and is estimated to maintain its leadership status throughout the forecast period.  Lithium-ion batteries are widely used in various applications, including consumer electronics, electric vehicles (EVs), renewable energy storage systems, and portable devices due to their high energy density and rechargeable nature.

Based on source, electric vehicle segment held the highest market share in 2022, accounting for nearly three-fifths of the global battery scrap market size in terms of revenue, and is estimated to maintain its leadership status throughout the forecast period. Electric vehicles (EVs) contribute to the battery scrap market primarily through the replacement of their lithium-ion batteries. Recycling and repurposing these used EV batteries play a crucial role in resource conservation, environmental sustainability, and responsible growth of the electric vehicle sector in battery scrap industry.

Based on the end-use, the material extraction held the highest market share in 2022, accounting for nearly two-fifths of the global battery scrap market revenue, and are estimated to maintain their leadership status throughout the forecast period. Battery scrap can have several potential uses in the field of material extraction, primarily in recycling and repurposing batteries and their components. Battery cells from scrap can be repurposed for energy storage applications. While they do not meet the high-performance demands for their original application, they can still store and release energy effectively, supporting backup power systems and off-grid solutions.  

Based on region, Asia-Pacific held the highest market share in terms of revenue in 2022, accounting for nearly half of the global battery scrap market revenue, and is likely to dominate the market during the forecast period. Furthermore, the Asia-Pacific region is expected to witness the fastest growing from 2023 to 2032. The Asia-Pacific region has been at the forefront of electric vehicle adoption, with China being the largest EV market globally.

Thus, there has been a growing focus on the recycling of EV batteries to recover valuable materials such as lithium, cobalt, and nickel. Also, Asia-Pacific countries are major producers and consumers of consumer electronics. Recycling of used batteries from smartphones, laptops, tablets, and other devices has become important due to environmental regulations and sustainability concerns.

Key players in the battery scrap industry include Li-Cycle, Umicore, HUSKY BATTERY SOLUTIONS, ENGITEC TECHNOLOGIES SPA, Sunlight Group, Aqua Metals.

Key Findings Of The Study:

• On the basis of product type, the lithium-ion segment accounts for nearly half of the market share, in terms of revenue, in 2022.
• On the basis of source, the electric vehicle segments accounts nearly three-fifths of the market size, in terms of revenue, in 2022.
• On the basis of end-use, the material extraction segment accounts for nearly two- fifths of the market share, in terms of revenue, in 2022.
• Region-wise, Asia-Pacific accounts for nearly half of the market share, in terms of revenue, in 2022.