Battery Materials Recycling Market Expected to Reach $56.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Battery Materials Recycling Market," The battery materials recycling market size was valued at $26.3 billion in 2022, and battery materials recycling industry is estimated to reach $56.9 billion by 2032, growing at a CAGR of 8.1% from 2023 to 2032.

Battery materials recycling refers to the process of recovering valuable components from used batteries to reuse them or extract valuable materials for further manufacturing. The recycling of battery materials has become increasingly important to minimize environmental impact and promote resource conservation as the demand for batteries continues to rise with the proliferation of electric vehicles and renewable energy storage systems. Battery materials recycling, is also known as battery recycling or secondary battery recovery. It is the process of collecting, disassembling, and processing used batteries to recover valuable materials such as metals, plastics, and electrolytes. The recovered materials may be reused in the production of new batteries or utilized in other industrial applications.

Battery materials recycling industry plays a crucial role in achieving a sustainable and circular economy. Batteries contain valuable resources such as lithium, cobalt, nickel, and other metals that are limited in supply and may have significant environmental and social impacts if not properly managed. Recycling these materials reduces the need for new mining operations, conserves natural resources, and minimizes pollution associated with extraction and production processes.

The recycling method involves shredding batteries into small pieces to separate the different components, such as metals, plastics, and electrolytes. Mechanical separation techniques, such as sieving and magnetic separation, are then used to separate the materials for further processing.

Pyrometallurgical process batteries are subjected to high-temperature processes, such as smelting or incineration, to recover metals. The high temperatures melt the metals, allowing them to be separated from other materials. However, this method requires careful control to prevent the release of toxic gases and pollutants.

Recycled battery materials find applications in various industries, including the production of new batteries, electronics, and other consumer goods. The recovered metals, such as lithium, cobalt, and nickel, may be used to manufacture new battery cells, reducing the reliance on new materials. In addition, recycled battery materials may be utilized in the production of stainless steel, alloy manufacturing, and catalysts for chemical processes. Plastic components may be reprocessed and used in the manufacturing of new plastic products or as fuel sources.

The battery materials recycling market forecast is segmented into material type, end-use industry, and regions. On the basis of material type, the market is categorized into lithium, cobalt, iron, manganese, nickel, lead, and others. On the basis of end-use industry, the market is divided into automotive, building and construction, aerospace & defense, textile, and others. Region-wise the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Growth drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights key areas of investment. In addition, it includes Porter’s five forces analysis to understand the competitive scenario of the industry and role of each stakeholder. Value chain analysis for this industry, which includes R&D, components manufacturers, assembly, programming & testing, marketing & sales, customers, and post-sales services, is explained. The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of the key players to increase their market share and sustain intense competition in the industry.

In 2022, the manganese segment emerged as the fastest growing segment in the battery materials recycling market, indicating its rising significance in the industry. Manganese, a key component in lithium-ion batteries, is increasingly being recognized for its potential in energy storage solutions. The demand for manganese-based batteries, known for their high energy density and long lifespan, has been rapidly expanding, driven by the growing adoption of electric vehicles and renewable energy systems.

As a result, the recycling of manganese-based battery materials has gained traction, offering a sustainable solution to address resource scarcity and environmental concerns. The recycling process involves extracting valuable materials like manganese, cobalt, and nickel from used batteries, enabling their reuse in new battery production.

By end-use industry, textile segment is the fastest growing segment of the battery materials recycling market share in 2022. The battery materials recycling market opportunities can be attributed to the rising demand for sustainable and eco-friendly practices in the textile industry. Textile manufacturers are increasingly incorporating recycled battery materials into their products, such as batteries for wearable technology, smart fabrics, and energy storage applications. The recycling of battery materials not only helps reduce environmental impact but also offers cost-saving benefits to the textile industry. Additionally, the advancements in recycling technologies and processes have made it easier to extract valuable materials from used batteries, which can then be utilized in textile production.

In addition, the report covers profiles of key industry participants such as Cirba Solutions, Eco-Bat Technologies, GEM Co., Ltd., Gopher Resource, GRAVITA INDIA LIMITED, Li-Cycle, RecycLiCo Battery Materials Inc., Redux GmbH, Redwood Materials Inc., and Umicore N.V.

Key Findings:

• By materials type, the lead segment was the highest revenue accounting for one-third of the share in the market,  in 2022.
• By end-use industry, the automotive segment was the highest revenue accounting for more than one-third of the share in the battery materials recycling market forecast, in 2022.
• By region, Europe emerged as the leading revenue contributor by region in 2022, demonstrating a CAGR of 7.8%.