Lithium-Ion Battery Recycling Global Market to Reach $1.9 Billion by 2027 at a CAGR of 24.49%

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Oct 14, 2022, 13:45 ET

DUBLIN, Oct. 14, 2022 /PRNewswire/ -- The "Lithium-Ion Battery Recycling Market - Forecasts from 2022 to 2027" report has been added to ResearchAndMarkets.com's offering.

The global lithium-ion (li-ion) battery recycling market was evaluated at US$410.601 million in 2020 and is projected to reach US$1,902.386 million by the year 2027, growing at a CAGR of 24.49%.

The market is projected to show promising growth over the forecast period, which is primarily attributable to the electric vehicle (EV) sector that is booming at the global level as more and more governments are inclining towards environmental sustainability and are thus implementing necessary policies and regulations to enhance the penetration of electric vehicles in their respective regions.

Moreover, the companies are investing in R&D for the development of new and cost-efficient recycling technologies, further widening the business growth opportunities shortly. Li-ion batteries are highly suitable for their applications in modern consumer electronics products and electric vehicles. Consequently, the growing sales of consumer electronics, particularly in developing regions, will play a significant role in shaping the market growth over the projected period.

Booming EV (Electric Vehicle) Sector

One of the major factors driving the lithium-ion (Li-Ion) battery recycling market growth is the growing focus on electric vehicle (EV) manufacturing coupled with the rising adoption of electric vehicles across the globe. According to the International Energy Agency (IEA) data, the global electric car stock increased from 0.02 million units in 2010 to 4.79 million units in 2019. Growing concerns regarding environmental sustainability and greenhouse gas (GHG) emissions are encouraging governments and global organizations, and agencies to boost the adoption of electric vehicles.

As such, subsidies and incentives provided to consumers have significantly surged the sales of electric cars in countries such as the United States, China, and the European region. Technological progress in the electrification of two and three-wheelers, buses, and trucks, has further driven up the global EV sector.

As the production of EVs has been continuously rising over the past few years, the demand for Li-Ion batteries has also increased. Since these batteries have a short life span of around 2-3 years, this increase in demand for lithium-ion batteries across the booming EV sector is also driving up the demand for lithium-ion battery recycling, thus bolstering the market growth.

High Sale of Consumer Electronics

Rising disposable incomes and increasing urbanization coupled with technological advancements, including miniaturization of electronics and electrical components, have boosted both sales and production of consumer electronics worldwide in the past years. Advancements in technologies such as artificial intelligence (AI) and machine learning (ML), along with the continuously declining prices of consumer electronic products, are further encouraging their continued consumption.

With China being the world's largest producer, exporter, and consumer of consumer electronics, according to the Ministry of Industry and Information Technology (MIIT), the country's expanding production volume of the consumer electronics industry can be associated with the growing demand for lithium-ion batteries globally. In 2018, Chinese shipments of smartphones stood at 27.8% of the global total, followed by personal computers (20%) and televisions (20%). Countries such as Japan, South Korea, and India have also witnessed a significant increase in production as well as the sale of consumer electronics.

With all this sales volume of consumer electronics, which use li-ion batteries, the demand for recycling services is also augmenting significantly, which is fueling the li-ion battery recycling market growth.

Advancements In Recycling Technology

Researchers across the globe are continuously working on productivity improvement and, thus, the basic economics of recycling. Continuous R&D investments, both public and private, are being funnelled to develop and improve the existing li-ion battery recycling technologies. For instance, the United States Department of Energy (DOE) launched its first lithium-ion battery recycling R&D centre, known as ReCel, in January 2019. This US$15 million investment aims to advance the recycling technology to make the recycling process profitable while reducing the country's dependence on other countries/regions for battery materials.

In the United Kingdom, the Reuse and Recycling of Lithium-Ion Batteries (ReLiB) project bring together researchers and industry representatives to improve the efficiency of the lithium-ion battery recycling process. Canadian company Li-cycle claims to have developed a patented technology that can recover between 80% and 100% of the resources from lithium-ion batteries.

Segmentation

By Type

Hydrometallurgy (chemical leaching)
Pyrometallurgy (smelting)

By Chemistry

Lithium-cobalt Oxide (LCO)
Lithium-iron Phosphate (LFP)
Nickel Manganese Cobalt Oxide (NMC)

By Recycling Process

Physical/Mechanical
Hydrometallurgical
Pyrometallurgical

By Industry

Automotive
Consumer Electronics
Communication and Technology
Energy and Power

By Geography

Key Topics Covered:

1. Introduction

2. Research Methodology

3. Executive Summary

4. Market Dynamics

5. Global Lithium-Ion Battery Recycling Market, By Type

6. Global Lithium-Ion Battery Recycling Market, By Chemistry

7. Global Lithium-Ion Battery Recycling Market, By Recycling Process

8. Global Lithium-Ion Battery Recycling Market, By Industry

9. Global Lithium-Ion Battery Recycling Market, By Geography

10. Competitive Environment And Analysis

11. Companies Profiles

Companies Mentioned