According to the recent Meticulous Research Report, the electric vehicles (EVs) battery recycling market is expected to reach $10.1 billion by 2031, at a CAGR of 40.9% from 2024 to 2031.
The global EV battery recycling market is broadly segmented into lithium-ion batteries (Li-ion), sealed lead acid batteries (SLA), nickel-metal hydride batteries (Ni-MH), and other batteries. In 2024, the lithium-ion batteries segment is expected to account for the largest share of 78.3% of the EV battery recycling market. The large market share of this segment is mainly attributed to the rising need to recover valuable materials from Li-ion batteries to reduce the need for new mining and processing of raw materials, the increasing adoption of electric vehicles, and the growing demand for high energy density and low self-discharge rate batteries for EVs. This segment is also projected to register the highest CAGR during the forecast period.
Based on battery source, the global EV battery recycling market is broadly segmented into commercial vehicles, passenger cars, e-scooters & motorcycles, and E-bikes. In 2024, the E-bikes segment is expected to account for the largest share of 64.8% of the EV battery recycling market. The large market share of this segment is attributed to the rising adoption of e-bikes worldwide. However, the commercial vehicles segment is expected to record the highest CAGR during the forecast period.
Based on recycling process, the global EV battery recycling market is broadly segmented into direct physical recycling process, pyrometallurgical process, hydro-metallurgical process, and other recycling processes. In 2024, the pyrometallurgical process segment is expected to account for the largest share of the global EV battery recycling market. The large market share of this segment is mainly attributed to the increasing need to extract raw materials from battery waste, the rising need for efficient and effective recycling processes, growing demand for a scalable, flexible, and low environmental impact recycling process. However, the hydro-metallurgical process segment is projected to register the highest CAGR during the forecast period.
The global EV battery recycling market is broadly segmented into contractual recycling services and direct-to-market. In 2024, the contractual recycling services segment is expected to account for the larger share of 86% of the EV battery recycling market. The large market share of this segment is mainly attributed to the increasing government incentives for battery recycling, stringent laws for the recycling of EV batteries, the increasing revenue streams for companies involved in the EV battery recycling market, and the growing need to reduce the cost of raw materials for new Electric Vehicle batteries. This segment is also projected to register the higher CAGR during the forecast period.
The global EV battery recycling market is broadly segmented into graphite, nickel, cobalt, copper, manganese, lithium, aluminum, iron, plastics, and other materials. In 2024, the graphite segment is expected to account for the largest share of the global EV battery recycling market. The large market share of this segment is mainly attributed to the increasing use of graphite in the anodes of batteries for electric vehicles, the high recycling rate of sealed lead acid batteries (SLA), and the increasing need to recover valuable materials from used EV batteries to reduce the need for mining new raw materials. However, the lithium segment is projected to register the highest CAGR during the forecast period.
The global EV battery recycling market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of the 69% of the EV battery recycling market, followed by Europe and North America. Asia-Pacific’s significant market share is mainly attributed to the growing implementation of policies and initiatives to reduce the amount of EV battery waste and toxic substances in the environment, the rising concerns regarding the depletion of precious and rare earth metals, the growing demand for lithium-ion batteries, the increasing, and the high adoption of electric mobility in the region.
