The market for electric vehicle battery recycling is expected to grow at a CAGR of around 27.1% from 2021 to 2028 and likely to reach the market value of around US$ 49.8 Bn by 2028.
With the introduction of the first vehicle, batteries are used as a secondary power source. The acceleration of electric vehicles on the market is driven by electric vehicles battery or traction battery. A secondary (rechargeable) battery is used for electric vehicles, which utilizes chemical energy stored in rechargeable power battery packs and therefore requires no propulsion combustion engine. These batteries are replaced by a new one when reaching the end of life. In order to maximize the use of limited metal resources, the useful products inside each battery can be recovered and recycled which stops working or reach the end of their life. The recoverable metals from the used batteries include aluminum, cobalt, nickel, lithium, and other metal types.
The growth of the market is driven by factors such as increasing demand for e-vehicles, strict regulation of fuel economy with decreased greenhouse emissions, and increased disposable earnings. Additionally, increasing demand is expected to provide market players with promising opportunities for eco-friendly batteries and improving high yield processes for recycling next-generation battery cells. The lack of infrastructure for battery recycling in the emerging market and the cost of construction recycling plants are the main factors hindering the growth of this market. However, increasing environmental adoption of batteries, the development of high-performance battery recovery technologies, the development of the supply chain for batteries along with the recycling network, and the improvement of the economies of developing countries provide global players with growth opportunities to increase the recycling market size of electric car batteries.
Covid-19 Impact on the Global Electric Vehicle Battery Recycling Market
The worldwide spread of coronavirus has disrupted the usual working of almost every industry verticals due to restrictions imposed by the respective governments, particularly to restrict the increasing number of Covid-19 patients, as well as to deal with the occurred medical emergencies. These new rules and regulations have put a halt on the production process of factories for electric vehicles and batteries used on them, which have impacted the growth of the market. The decisions have been taken to follow the social distancing norms and to stop the spread of the virus from one working person to another.
Regional Instance of Global Electric Vehicle Battery Recycling Market
Asia-Pacific, followed by Europe, dominated the market in 2020. Due to increased production and sales of electric-vehicle and electric-vehicle battery refrigeration systems, the Asia-Pacific market is projected to have the largest part of the market. Moreover, increased investment of public and private players and increased demand for safety features in vehicles are contributing to the market development in Japan, Australia, China, Vietnam, and India. China is projected to grab the largest portion of Asia-Pacific due to the existence of a large customer base recognizing the benefits of vehicle battery disposal. The growth of North America represents factors such as research and technology spending, growing government support for automobile manufacturing and manufacturing of EV battery systems, and having a broad potential consumer base of battery purchases in the USA and Canada to the ecologically friendly vehicles market. The European Union (EU) has adopted legislation in the UK, France, and in other countries concerning vehicle emission standards and has already set its timelines for the establishment of zero-emission areas, which increase electric vehicle requirements and stimulate the demand for batteries for electric vehicle recycling. This implies that battery recycling facilities are designed to satisfy market demand and to reduce pollution from the dumping of electric batteries by vehicle in the region.
Key Market Players
The players profiled in the research report include American Manganese Inc., ACCUREC Recycling GmbH, Battery Solutions, LI-CYCLE CORP., Recupyl, Retriev Technologies, G & P Service, SITRASA, SNAM S.A.S., Umicore, and others. After evaluating the future market for recycled materials such as nickel, cobalt, lithium and many companies are working on effective strategies for the reuse of lithium-ion batteries in an integrated way. For example, Kemetco is cooperating with American Manganese to develop an efficient and environmentally friendly scalable, and marketable recycling system for lithium-ion batteries. Moreover, 9% of the global requirement for lithium in many applications is expected to exceed the amount of recycled lithium.
Electric Vehicle Battery Recycling Market By Application
Energy Storage Systems
Electric Vehicle Battery Recycling Market By Geography
Environmental concerns led us to set up a few zero-emission goals, and this certainly is expected to drive the growth of the electric vehicle battery recycling market.
High recycling gap is a major factor expected to restraint the growth of the market.
The market for electric vehicle battery recycling is expected to reach a market value of around US$ 49.8 Bn by 2028.
The key players operating in electric vehicle battery recycling markets are American Manganese Inc., ACCUREC Recycling GmbH, Battery Solutions, LI-CYCLE CORP., Recupyl, Retriev Technologies, G & P Service, SITRASA, SNAM S.A.S., Umicore, and others.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020-2027.
Asia Pacific held the maximum share in the electric vehicle battery recycling market of 2020.
The report provides insights on global electric vehicle battery recycling market segment by application, and major geographic regions.