Battery Recycling Market to Reach $77.1 billion, Globally, by 2034 at 11.2% CAGR: Allied Market Research

WILMINGTON, Del., Oct. 20, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, "Battery Recycling Market by Chemistry (Lead-Acid Based Battery, Lithium-Ion Based Battery, Nickel-Based Battery, and Others), Recycling Process (Hydrometallurgy, Pyrometallurgy, and Others), Material (Metals, Electrolyte, Plastics, and Others), Source (Automotive Batteries, Industrial Batteries, and Consumer and Electronic Appliance Batteries), and Application (Transportation, Consumer Electronics, Industrial, and Others): Global Opportunity Analysis and Industry Forecast, 2025-2034". According to the report, the battery recycling market 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.

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Increase in Government Regulations on Battery Disposal

Government regulations on battery disposal play a critical role in shaping the battery recycling market. As the usage of batteries, particularly lithium-ion batteries, in electric vehicles, consumer electronics, and industrial applications continues to surge, governments across the globe have implemented stringent regulatory frameworks to manage the environmental risks associated with battery waste. In the European Union, the Battery Directive (2006/66/EC) mandates that producers take responsibility for the collection, treatment, and recycling of batteries. The directive sets minimum recycling efficiency targets and obliges member states to implement national systems for battery take-back and proper disposal. A more comprehensive revision of this directive, the EU Batteries Regulation (Regulation (EU) 2023/1542), came into effect in 2023. It strengthens sustainability requirements across the entire battery lifecycle from design and production to end-of-life recycling, thus introducing battery passports and mandatory recycled content thresholds for key materials like cobalt, lithium, and nickel.

Ban on Landfilling Batteries in Several Countries

The ban on landfilling batteries in several countries has emerged as a significant regulatory driver in the global battery recycling market. As the world confronts the environmental hazards posed by improperly discarded batteries lithium-ion and lead-acid types, governments are taking legislative action to restrict or outright prohibit battery disposal in landfills. According to the European Environment Agency (EEA), Europe generated over 1.4 million tons of portable batteries in 2022, with approximately 50% recycled, in part due to these bans and collection schemes. Countries like Germany, Sweden, and the Netherlands have achieved collection rates above 70%, showcasing the efficacy of landfill bans in enhancing recycling performance. Moreover, in November 2023, the California Department of Toxic Substances Control (DTSC) reported that over 15,000 tons of batteries were diverted from landfills through designated collection and recycling channels.

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China's Regulatory Clout on Battery Recycling Mandates

China's battery recycling regulation is the "Interim Measures for the Management of Recycling and Utilization of New Energy Vehicle Power Batteries", introduced by the Ministry of Industry and Information Technology (MIIT) in 2018 and continuously strengthened since. These measures mandate EV manufacturers to establish comprehensive battery recycling systems, including traceability management, centralized collection, and proper treatment facilities. All EV batteries must be tracked via a unified national platform, with serial numbers used to monitor battery health, ownership, and recycling status. By mid-2024, the system had already logged over 10 million batteries, demonstrating its extensive reach. The Ministry of Industry and Information Technology (MIIT) has proposed new standards that increase the minimum lithium recovery rate to 90% (up from 85% in previous proposals), while maintaining high recovery rates for nickel, cobalt, and manganese at 98%. New targets of 98% are also set for copper, aluminum, and rare earth metals.

Export of Recycled Batteries to Countries with Material Shortages

The EU has introduced strict regulations emphasizing a circular economy, mandatory recycling targets, and enhanced traceability for batteries and their materials. Export of recycled batteries or recovered materials is permitted, but only if recycling meets the EU's high environmental standards and traceability requirements, including digital battery passports and mandatory reporting of recycled content and carbon footprint. Countries with advanced recycling infrastructure, such as Belgium (Umicore), Germany, and the U.S., are increasingly positioned to export recycled battery materials to regions with limited access to raw materials or insufficient recycling capacity. For example, Umicore in Belgium has a pilot plant capable of recycling up to 7,000 tons of lithium batteries per year and has established supply agreements with major automakers across Europe.

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Public-Private Collaborations for Battery Take-back Programs

Governments typically provide the regulatory framework, infrastructure support, and policy incentives necessary to guide battery collection and recycling, while private companies such as battery manufacturers, automakers, electronics brands, and recyclers bring in technological expertise, logistics capabilities, and funding. For example, in the European Union, Extended Producer Responsibility (EPR) legislation mandates that producers manage battery waste. In response, many countries have established public-private schemes, such as Germany's GRS Batterien Foundation, which collects and recycles millions of batteries annually through a network of over 200,000 collection points in partnership with retailers and local governments. The Battery Waste Management Rules-2022 mandate producer responsibility for battery collection and recycling, spurring the emergence of new recycling industries and aiming for a 90% recovery rate by 2027 through collaborative models

Key Players: -

• 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
• Element Resources

The report provides a detailed analysis of these key players in the battery recycling industry. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, and agreements to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to highlight the competitive scenario.

Recent Key Developments

• In March 2023, Cirba Solutions announced a $300 million investment to expand lithium-ion battery recycling capabilities across the U.S., supported by the U.S. Department of Energy (DOE).
• In April 2025, Contemporary Amperex Technology Co., Limited (CATL) partnered with Chinese automakers and battery recyclers to build a closed-loop recycling system.

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