Electric Vehicles (EV) Battery Recycling Market By Battery Type, By Recycling Process, By Vehicle Type, By Region and By Country: Industry Size, Share, Trends, Growth Analysis and Forecasts, 2025 – 2032

Report Summary

Electric Vehicles (EV) Battery Recycling Market Size Statistics

• The Global Electric Vehicle (EV) Battery Recycling Market was valued at US$ 7 billion in 2024.

• Electric Vehicle (EV) Battery Recycling Market is forecasted to grow significantly, reaching over US$ 50 billion by 2032.

• As per Vertex, Global Electric Vehicle (EV) Battery Recycling Market is projected to grow at a CAGR of 27% from 2025 to 2032.

This growth is driven by the rising demand from EV manufacturers and government policies aimed at minimizing automotive waste. The global EV battery recycling capacity is expected to cross 1.2 million tons by 2030 to meet growing recycling demands.

The market is anticipated to see significant growth, with an estimated 26.4 million EVs expected to be on the road by 2030. Projections suggest that 50% of materials in End of Life (EoL) batteries could potentially be recycled, reducing the annual demand for newly mined resources by up to 28% by 2050. As EV batteries are retired from their initial use, they can be repurposed for secondary applications, such as energy storage systems, before being recycled to extract valuable materials.

Governments worldwide are implementing policies that promote recycling and reduce emissions associated with EV production. For instance, the 2022 Bipartisan Infrastructure Law in the U.S. allocated US$ 2.8 billion towards battery recycling facilities and technology advancement, while the Inflation Reduction Act provides tax incentives for EV purchases contingent on a portion of materials being sourced or processed domestically. Such measures support the development of a circular economy within the battery industry, encouraging EV manufacturers to increase domestic recycling efforts.

Electric Vehicles Battery Recycling Market Current Trends

Most EV batteries currently in use have yet to reach their end of life due to the relatively recent surge in EV manufacturing over the past decade. As a result, the majority of materials currently entering recycling facilities are manufacturing scraps rather than EoL batteries. According to the International Council on Clean Transportation (ICCT), the global recycling infrastructure at the end of 2022 was capable of processing approximately 105,150 tons of battery materials annually, mostly derived from manufacturing waste rather than EoL EV batteries.

EV batteries generally have a lifespan ranging from 5 to 20 years, necessitating replacement once they reach their end-of-life (EoL) stage. With the cost of key raw materials on the rise, manufacturers are increasingly focused on recycling technologies to recover valuable metals such as lithium, nickel, cobalt, and manganese. Recycling has become not only a sustainable option but also a financially competitive alternative due to escalating material costs and the need for a stable supply chain. Lithium-ion batteries, which are the primary type used in EVs, contain several critical components arranged in multiple layers. A typical battery cell consists of a positively charged cathode made of a mixture of lithium, nickel, cobalt, and manganese, a graphite-based anode, and a liquid or gel electrolyte to facilitate ion movement. The cells are encased in protective steel or aluminum, ensuring durability. Each EV battery pack generally includes hundreds of cells, allowing for extensive range and longevity up to 200,000 miles. Due to the anticipated durability, EV manufacturers commonly offer extended warranties.

What are the Electric Vehicles Battery Recycling Market Segmentations and Bifurcations?

Electric Vehicles Battery Recycling Market Segments based on Battery Type

• Lithium-ion (Li-ion) Batteries

• Nickel-Metal Hydride (NiMH) Batteries

• Others

In 2024, Li-ion batteries emerged as the leading segment in the electric vehicles battery recycling market in terms of market value. Lithium-ion (Li-ion) batteries are the most common battery type used in electric vehicles due to their high energy density, longer lifespan, and relatively lighter weight compared to other chemistries.

Li-ion batteries contain valuable materials such as lithium, cobalt, nickel, and graphite, which are highly sought after in the recycling process. With EV adoption growing, the demand for efficient recycling technologies targeting Li-ion batteries is expanding. These materials can be recovered and reused, reducing the need for mining and improving the sustainability of EV production​. Technological advancements in direct recycling and hydrometallurgical processes are improving recovery rates and reducing costs.

Electric Vehicles Battery Recycling Market Segments based on Recycling Process

• Physical Recycling
• Pyrometallurgy
• Hydrometallurgy
• Others

In 2024, the pyrometallurgical process segment is expected to account for the largest share of the EV battery recycling market. The large market share of this segment is attributed to the high recycling efficiency of the pyrometallurgical process, the increasing need to remove organic material from Li-ion batteries, the need for efficient and cost-effective recycling methods, the increasing need to recover valuable materials from used Li-ion batteries to reduce reliance on new mining operations, stringent environmental regulations, and the growing demand for scalable and flexible recycling processes.

However, the hydrometallurgical process segment is projected to witness the highest growth rate during the forecast period 2025–2032. The growth of this segment is driven by the increasing need to extract a wide range of materials, including copper, lithium, silver, nickel, and zinc, from EV batteries, the increasing need to address the shortage of critical raw materials, and the growing need to lower energy consumption, reduce waste, and minimize the environmental impact of recycling processes.

Electric Vehicles Battery Recycling Market Segments based on Vehicle Type

• Electric Passenger Cars
• Electric Buses & Commercial Vehicles
• Electric Two-Wheelers
• Others

The electric passenger cars segment held significant revenue share in 2024. With the rapid growth in electric vehicle adoption, fueled by environmental concerns and government incentives, the need for battery recycling within this segment is escalating. Moreover, consumer awareness regarding environmental impact and regulatory pressures further contribute to the segment's dominance in the electric vehicles battery recycling market analysis.

E-Bikes by source contributes to have highest CAGR during the forecast period as electric vehicle (EV) batteries in e-bikes is driven by several key advantages. EV batteries, particularly lithium-ion and lithium-iron-phosphate (LFP) types, offer higher energy density, ensuring longer range and improved e-bike performance. Safety is improved, with lithium-ion batteries being less vulnerable to thermal runaway and oxygen release in case of fire compared to lead-acid batteries.

What are the Growth Drivers, Restraints, and Opportunities in Electric Vehicles Battery Recycling Market?

Rising EV Adoption Boosts EV Battery Recycling Market

The rapid expansion of the electric vehicle (EV) market is fueling demand for efficient battery recycling solutions. As EV adoption accelerates worldwide, a growing number of lithium-ion batteries are reaching the end of their lifecycle, creating an urgent need for sustainable disposal and material recovery processes. Governments across key regions, including North America, Europe, and China, are implementing aggressive policies, tax incentives, and subsidies to promote EV adoption, further intensifying the demand for recycling infrastructure.

With global EV sales surpassing 14 million units in 2023 and around 17 million units in 2024 and projected to exceed 40 million annually by 2030, the volume of end-of-life (EoL) batteries requiring recycling is expected to rise dramatically. Regulatory frameworks, such as the European Union’s Battery Regulation mandating increased recycling efficiency and the U.S. Inflation Reduction Act allocating billions toward battery circular economy initiatives, are accelerating investment in battery recycling. Some of the leading industry players, including Redwood Materials, Li-Cycle, and Ascend Elements, are scaling operations with innovative recycling methods to enhance material recovery rates and reduce reliance on virgin raw materials.

Regulatory Pressures and Sustainability Drive Growth in EV Battery Recycling Market

The improper disposal of electric vehicle (EV) batteries poses significant environmental risks, making efficient recycling essential for minimizing waste and conserving critical raw materials. As the demand for EVs grows, so does the urgency to develop sustainable recycling solutions that align with global climate initiatives and circular economy principles.

Governments worldwide are enforcing stricter regulations to ensure responsible battery disposal and material recovery. Regulatory frameworks such as the European Union’s Battery Directive mandate specific recycling targets, requiring a higher percentage of lithium, cobalt, and nickel to be reclaimed and reused. In the United States, federal and state initiatives, including incentives under the Inflation Reduction Act, are accelerating the expansion of battery recycling infrastructure. China has also implemented Extended Producer Responsibility (EPR) policies, compelling manufacturers to oversee the collection and recycling of spent EV batteries. To support compliance and innovation, governments are offering grants and subsidies to companies developing advanced recycling technologies, such as hydrometallurgical and direct recycling methods.

Second-Life Applications for EV Batteries

Before batteries are fully recycled, EV batteries can be repurposed for secondary uses, particularly in stationary energy storage systems. This approach not only extends the life of EV batteries but also helps reduce waste and conserves valuable materials. Many EV batteries that no longer meet the performance standards for vehicles still retain a significant capacity, making them suitable for second-life applications such as grid storage and commercial energy solutions.

These repurposed batteries can store excess renewable energy, such as solar or wind power, and release it when demand peaks, improving grid stability and efficiency. As the demand for renewable energy storage grows, the market for second-life batteries is expanding. This expanding market not only supports the sustainability of battery usage but also complements the overall EV battery recycling ecosystem by delaying the need for full recycling and creating new revenue streams.

Limited Recycling Infrastructure Challenges EV Battery Recycling Growth

Despite the rising demand for EV battery recycling, global battery recycling infrastructure remains a significant challenge. The current number of specialized facilities capable of processing lithium-ion batteries is insufficient to manage the projected influx of end-of-life (EoL) batteries. As the electric vehicle market expands and more batteries reach their end of life, the strain on existing recycling infrastructure is becoming evident.

Electric Vehicles (EV) Battery Recycling Market Report Scope & Snapshot

What are the Regional and Country Trends in Electric Vehicles Battery Recycling Market?

Electric Vehicles Battery Recycling Market - Regional Landscape and Trends

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

In 2024, the Asia Pacific region dominated the global electric vehicle (EV) battery recycling market, holding around 50% of the market share. This leading position is driven by the region’s rapid adoption of electric vehicles, particularly in countries such as China, Japan, and South Korea, which are seeing substantial demand for battery recycling solutions. As a major manufacturing hub for both electric vehicles and batteries, the region produces a large volume of end-of-life (EoL) batteries, further emphasizing the need for efficient recycling infrastructure. Additionally, APAC benefits from strong government support and favorable policies aimed at promoting sustainability. Incentives and regulatory frameworks are fueling the growth of battery recycling, with investments in recycling technologies and infrastructure being a key focus. For instance, India’s FAME and FAME II policies have provided significant support for consumers and investors, boosting EV adoption and encouraging manufacturers to establish EV production plants. Moreover, Indian automakers are actively investing in research and development to create affordable electric vehicles, further driving demand for recycling services.

The Europe EV battery recycling market has been propelled by stringent government regulations that mandate responsible disposal and recycling of EV batteries. As the adoption of electric vehicles continues to surge, the need for advanced recycling infrastructure has become even more critical. The European Union’s circular economy initiatives emphasize resource efficiency, waste reduction, and the creation of a robust recycling ecosystem. Collaboration between automotive manufacturers, battery producers, and recycling companies is fostering innovation in recycling technologies, supported by increased green investments and government incentives.

How is the Competition Scenario in Electric Vehicles Battery Recycling Market?

Electric Vehicles Battery Recycling Market Competitive Landscape

The electric vehicle (EV) battery recycling market is highly competitive, with a wide range of key players and new entrants expected to further intensify the competition. Established industry leaders are continuously innovating to strengthen their positions, focusing on enhancing technology, increasing capacity, improving efficiency, and ensuring reliability and safety in their operations. As advancements in battery technology accelerate, companies are increasingly investing in cutting-edge solutions to meet the evolving demands of consumers and regulatory standards.

Some of the key companies operating in electric vehicles battery recycling market include:

• Accurec Recycling
• Contemporary Amperex Technology
• Ecobat
• Eramet
• Fortum
• GEM Co. Ltd.
• Glencore 
• Li-Cycle
• Neometals
• RecycLiCo Battery Materials
• Redwood Materials
• Retriev Technologies
• SITRASA
• SK TES
• Umicore
• Others

Electric Vehicles Battery Recycling Industry Developments

• In November 2024, Mercedes-Benz made a significant move by opening Europe’s first EV battery recycling plant, incorporating an innovative mechanical-hydrometallurgical process. This development marks a key milestone in the company’s commitment to sustainable automotive production.
• In January 2024, BASF and Stena Recycling formed a partnership to create a comprehensive battery recycling value chain for Europe's electric vehicle (EV) battery sector. This collaboration aims to improve recycling efficiency and strengthen the supply chain for EV battery materials in the region.
• In December 2023, LOHUM Cleantech expanded its operations into the UAE, announcing plans to establish the country’s first EV battery recycling plant. This initiative is part of a partnership with the UAE's Ministry of Energy & Infrastructure and BEEAH, a leader in sustainability and digitalization in the Middle East.
• In November 2022, Li-Cycle Corp. further expanded its reach through a strategic partnership with Vines Energy Solutions, a leading battery and cell pack manufacturer. This collaboration aims to provide Li-Cycle’s recycling solutions to Vines Energy Solutions, strengthening their position in the EV battery recycling market.
• In September 2022, Umicore and PowerCo announced a joint venture to produce precursor and cathode materials in Europe, set to supply PowerCo’s battery cell factories starting in 2025. This venture is also expected to integrate refining and battery recycling using Umicore’s advanced technology.
• In March 2022, Neometals and Mercedes-Benz revealed plans to build a joint venture, focusing on establishing a 2,500-ton-per-year lithium-ion battery recycling plant in Germany.
• In March 2022, Retriev Technologies, a U.S.-based lithium battery recycling and management company, acquired Battery Solutions, expanding its capabilities in battery logistics, cross-chemistry collection, and end-of-life battery sorting services. This acquisition positions Retriev Technologies to enhance its role in the growing battery recycling market.