The Global Lithium-Ion Battery Recycling Market is expected to grow at a compound annual growth rate (CAGR) of 15.08% from US$1,459.278 million in 2025 to US$2,945.193 million in 2030.
The global lithium-ion (Li-ion) battery recycling market is driven by the growing electric vehicle (EV) and electronics market, adding to the volume of used lithium-ion batteries. The rising regulatory pressure and environmental consciousness for sustainable disposal of used lithium-ion batteries and the demand for efficient recycling solutions to recover valuable materials are driving this market expansion. Advancements in the recycling technology of lithium-ion are also propelling this market’s growth.
The global lithium-ion battery recycling market is witnessing significant growth driven by two major factors:
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 the lithium-ion battery recycling market growth.
The growing electronics industry is driving the lithium-ion battery recycling market. Rising disposable incomes, increasing urbanization, and technological advancements, including the miniaturization of electronics and electrical components, have boosted both sales and production of consumer electronics worldwide in recent years. Technological advancements 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. Countries such as Japan, South Korea, and India have also witnessed a significant increase in production and the sale of consumer electronics.
With all this sales volume of consumer electronics that use Li-ion batteries, the demand for recycling services is also increasing significantly, fueling the lithium-ion battery recycling market expansion.
For instance, the United States Department of Energy (DOE) launched its first lithium-ion battery recycling R&D center, 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 2023, it announced $2 million for rejuvenating, recycling, and reusing Li-ion battery programs. Recently, the U.S. Department of Energy Ames National Laboratory developed a new recycling process that does not require chemicals or heat and allows the recovery of more lithium from spent batteries than other recycling methods. These advancements in lithium-ion battery recycling technology are projected to spur the recycling process, driving the lithium-ion market growth over the next five years.
The North American region is expected to have a considerable share of the global lithium-ion battery recycling market. The government's growing support for sustainable battery disposal and rising investment in recycling infrastructure drive the market.
Europe is also anticipated to hold a considerable share in the global Li-Ion battery recycling due to the significant focus of the governments on developing advanced recycling infrastructure and technology to adopt sustainable use of resources. The European Union is increasingly taking steps to recover valuable metals from used batteries to boost the recycling of valuable resources.
These companies are the major global lithium-ion battery recycling players and are anticipated to continue dominating the market. Their growing focus on technological development with advanced battery recycling technologies makes them key market players.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Lithium-Ion Battery Recycling Market Size in 2025 | US$1,459.278 million |
| Lithium-Ion Battery Recycling Market Size in 2030 | US$2,945.193 million |
| Growth Rate | CAGR of 15.08% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Million |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Lithium-Ion Battery Recycling Market |
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| Customization Scope | Free report customization with purchase |