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Battery Recycling Market

The market for Battery Recycling was estimated at $22.7 billion in 2025; it is anticipated to increase to $38.3 billion by 2030, with projections indicating growth to around $64.5 billion by 2035.

Report ID:DS2405002
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Battery
Battery Recycling
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Global Battery Recycling Market Outlook

Revenue, 2025

$22.7B

Forecast, 2035

$64.5B

CAGR, 2026 - 2035

11.0%

The Battery Recycling industry revenue is expected to be around $22.7 billion in 2026 and expected to showcase growth with 11.0% CAGR between 2026 and 2035. This robust outlook underscores the strategic importance of Battery Recycling as governments and manufacturers seek to reduce dependence on virgin critical minerals, lower lifecycle emissions, and comply with tightening environmental regulations across the energy and mobility sectors. Rising adoption of electric vehicles, hybrid vehicles, and industrial batteries is expanding the volume of end-of-life cells entering the waste stream, thereby driving demand for efficient lithium-ion battery recycling and industrial battery recycling solutions. At the same time, corporate sustainability targets and circular economy frameworks are positioning Battery Recycling as a core enabler of sustainable energy storage and responsible e-waste management. By converting end-of-life batteries into high-quality recycled materials, the industry supports supply security, cost optimization, and risk mitigation for global battery and automotive manufacturers.

Battery Recycling involves the systematic collection, disassembly, and processing of spent batteries to maximize material recovery through advanced resource recovery technologies and strict environmental controls. Key features of the market include specialized processes for lithium-ion battery recycling, dedicated EV battery recycling and industrial battery recycling facilities, and integrated logistics networks that function as urban mining hubs within a regulated, closed-loop supply chain. Major applications encompass EVs and hybrid vehicles, together with industrial batteries deployed in backup power, manufacturing, and grid-scale energy storage, with these segments collectively accounting for 61.7% of overall Battery Recycling demand. Within battery types, lithium-ion batteries dominate industry revenue, generating approximately $12.33 billion in sales in 2025 as manufacturers prioritize high-performance chemistries and long-term circular strategies that reinforce Battery Recycling as a critical pillar of a resilient, low-carbon economy

Battery Recycling market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Battery Recycling Market Outlook

Market Key Insights

  • The Battery Recycling market is projected to grow from $22.7 billion in 2025 to $64.5 billion in 2035. This represents a CAGR of 11%, reflecting rising demand across Automotive Industry, Consumer Electronics, and Industrial Sector.

  • Li-Cycle, Umicore, Retriev Technologies are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Battery Recycling market and are expected to observe the growth CAGR of 7.9% to 11.3% between 2025 and 2030.

  • Emerging markets including India, Brazil and Mexico are expected to observe highest growth with CAGR ranging between 10.4% to 13.5%.

  • Transition like Global energy transition is expected to add $4 billion to the Battery Recycling market growth by 2030.

  • The Battery Recycling market is set to add $40.6 billion between 2025 and 2035, with manufacturer targeting Industrial batteries & Energy storage systems and grid storage Application projected to gain a larger market share.

  • With

    electric vehicle growth, and

    Environmental Regulations, Battery Recycling market to expand 179% between 2025 and 2035.

battery recycling market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Battery Recycling - Country Share Analysis

Opportunities in the Battery Recycling

Battery Recycling for end-of-life EV packs in Europe is also poised for rapid expansion as automakers face stricter extended producer responsibility rules and rising demand for localized critical minerals recovery. Lithium-ion battery recycling will capture the largest value, with global revenues projected to rise from $12.33 billion in 2025 to $17.61 billion by 2030, supported by 7.4% CAGR. Advanced hydrometallurgical and direct-recycling technologies, combined with circular economy mandates, create untapped partnerships between recyclers, OEMs, and gigafactories.

Growth Opportunities in Asia-Pacific and Europe

Battery Recycling in Asia-Pacific is primarily driven by large-scale EVs and hybrid vehicles deployment, supported by dense cell manufacturing clusters that create steady feedstock for lithium ion battery recycling and EV battery recycling projects. Top opportunities include integrated facilities co-located with gigafactories to secure closed-loop supply of sustainable battery materials, targeted solutions for industrial battery recycling in manufacturing hubs, and specialized recovery lines for fast-growing energy storage systems and grid storage used in renewable integration. Competitive dynamics are shaped by strong domestic conglomerates and state-backed players, pushing new entrants to differentiate through higher metal recovery yields, flexible processing of diverse chemistries, and robust collection networks for consumer electronics and e-waste management. Regulatory drivers such as expanding producer-responsibility frameworks and localization policies favor investors that can offer scalable, compliant Battery Recycling capacity while tailoring service models to national industrial policies across China, India, Japan, and South Korea.
Battery Recycling in Europe is anchored by stringent environmental regulations and ambitious climate targets, making EVs and hybrid vehicles the most critical application, with energy storage systems and smart grid storage emerging as a strategic second pillar as renewable capacity accelerates. Key opportunities lie in premium, low-carbon processing for lithium-ion battery recycling, traceable secondary metals supply to European OEMs, and high-value recovery from complex packs used in industrial batteries and stationary storage. Competition is intense, with technologically advanced recyclers, metal refiners, utilities, and automotive groups pursuing vertical integration, which raises the bar for process efficiency, safety standards, and cross-border logistics capabilities. Policy-driven collection targets, recycled-content requirements, and strong circular economy commitments from automakers and energy players collectively drive demand for differentiated Battery Recycling offerings that combine advanced hydrometallurgical and pyrometallurgical technologies with digital tracking and pan-European take-back systems for consumer electronics and mobility applications.

Market Dynamics and Supply Chain

01

Driver: Electric vehicle expansion and tightening environmental regulations accelerating global battery recycling demand

Rapid growth in electric vehicle adoption is also significantly increasing the volume of end of life lithium ion batteries entering the market. Automakers are also launching large EV fleets, creating predictable future recycling streams that support long term investments in recycling infrastructure. At the same time, stricter environmental regulations are also mandating responsible battery disposal and material recovery. Policies such as extended producer responsibility, recycling quotas, and carbon reduction targets are also compelling OEMs and battery manufacturers to integrate recycling into supply chains. Together, EV scale and regulation are also driving innovation in hydrometallurgical and direct recycling technologies, improving recovery efficiency and economic viability across global markets.
Volatile prices for lithium, cobalt, and nickel are also pushing manufacturers to secure recycled materials as a stable alternative to mined supply. Battery recycling provides cost predictability and reduces exposure to geopolitical risks tied to mining regions. also advances in high purity material recovery allow recycled metals to meet battery grade specifications, making secondary sourcing increasingly viable. This trend is also strengthening long term offtake agreements between recyclers and battery producers, reinforcing market growth.
02

Restraint: High capital investment and long payback periods limiting rapid expansion of recycling capacity

Battery recycling facilities require substantial upfront investment in specialized equipment, safety systems, and regulatory compliance. Advanced hydrometallurgical plants often face long payback timelines, discouraging smaller players from entering the market. This slows capacity expansion, especially in emerging regions, limiting recycling volumes and constraining revenue growth despite rising battery waste generation.
03

Opportunity: Consumer electronics proliferation enabling organized collection of portable batteries in Asia and Industrial and telecom backup systems expanding lead-acid battery recycling demand

Battery Recycling targeting portable batteries from smartphones, power tools, and household electronics in Asia remains underdeveloped despite soaring device penetration and rising concerns over e-waste management. Organized collection programs for nickel cadmium, nickel metal hydride, and other batteries can unlock profitable urban mining while reducing landfill leakage. These segments together grow more modestly, with global revenues rising from around $2.77 billion in 2025 to almost $3.27 billion by 2030, but offer strong margin potential through high-density urban collection and sorting networks.
Battery Recycling for industrial UPS, telecom towers, and data-center backup systems will increasingly focus on high-volume lead-acid streams, where recycling economics are already proven yet geographically fragmented. Lead-acid battery recycling is expected to record the fastest growth, with global revenues expanding from $7.60 billion in 2025 to $17.03 billion by 2030 at 17.5% CAGR. Consolidation and cross-border joint ventures can optimize logistics, build closed-loop supply chains, and support sustainable manufacturing for infrastructure growth in rapidly urbanizing regions.
04

Challenge: Inefficient collection systems and inconsistent battery chemistries increasing operational complexity

Fragmented collection networks and diverse battery chemistries complicate sorting, transportation, and processing. Inconsistent feedstock quality reduces recovery efficiency and raises operating costs. For example, mixed lithium ion chemistries require additional preprocessing steps, impacting margins. These challenges reduce recycling scalability and can delay revenue realization for new facilities.

Supply Chain Landscape

1

Battery Collection Network

Call2RecycleRetriev TechnologiesLi-Cycle
2

Lithium-ion Sorting

Retriev TechnologiesLi-CycleRedwood Materials
3

Battery Recycling Recovery

Li-CycleRedwood MaterialsUmicore
4

End-use Applications

Electric VehiclesConsumer ElectronicsEnergy Storage Systems
Battery Recycling - Supply Chain

Use Cases of Battery Recycling in Automotive Industry & Industrial Sector

Automotive Industry : Battery recycling within the automotive industry is largely driven by lithium ion and lead acid battery recycling, supporting electric vehicles and conventional automotive batteries. Recycling recovers lithium, nickel, cobalt, and lead, reducing raw material dependence and stabilizing supply chains for automakers. Closed loop recycling helps OEMs meet sustainability targets and regulatory mandates. Key players such as Umicore, Redwood Materials, and Li-Cycle hold strong positions due to advanced hydrometallurgical processes, high recovery rates, and long term partnerships with global automotive manufacturers.
Consumer Electronics : Battery recycling for consumer electronics primarily focuses on lithium ion battery recycling from smartphones, laptops, wearables, and portable devices. These batteries contain valuable metals such as cobalt, lithium, and copper, making recycling economically attractive at scale. Efficient collection and processing help electronics brands lower environmental impact and comply with extended producer responsibility rules. Companies like Umicore, GEM, and Ecobat lead this segment through established recycling networks, high purity material recovery, and strong relationships with global electronics and device manufacturers.
Industrial Sector : In the industrial sector, battery recycling mainly involves lead acid and industrial lithium ion batteries used in forklifts, backup power systems, and heavy equipment. Recycling supports cost control, safe disposal, and material reuse in large volume applications with predictable battery replacement cycles. Lead acid recycling is particularly mature, achieving high recovery efficiency and circularity. Firms such as Exide Industries, Johnson Controls, and Ecobat dominate this space, benefiting from established collection systems, regulatory compliance expertise, and large scale processing capacity.
Energy Storage Systems : Battery recycling for energy storage systems centers on lithium ion battery recycling from grid scale and renewable energy storage installations. As large stationary batteries reach end of life, recycling recovers lithium, nickel, and manganese to support new storage deployments. This reduces lifecycle costs and mitigates resource constraints linked to renewable expansion. Market leaders including Redwood Materials, Li-Cycle, and Umicore leverage advanced hydrometallurgical technologies, enabling high recovery yields and positioning them as critical partners for utilities and advanced energy storage developers.

Recent Developments

Recent developments in battery recycling highlight rapid growth in lithium-ion battery recovery, driven by rising electric vehicle battery waste and stricter environmental regulations. Companies are scaling hydrometallurgical recycling and direct recycling technologies to boost material recovery and reduce reliance on raw mining. A key market trend is expanded circular economy integration, where recycled cobalt, nickel, and lithium feed back into battery manufacturing, improving supply chain resilience and lowering costs while supporting sustainability goals.

October 2025 : Redwood Materials secured $350 million in Series E funding led by Eclipse Ventures, with participation from Nvidia’s NVentures, to expand its critical materials recycling and energy storage operations in the United States.
August 2025 : Li-Cycle was acquired by Glencore plc, integrating Li-Cycle’s hydrometallurgical ‘spoke & hub’ battery recycling technology into Glencore’s global refining network, significantly expanding its processing capacity and market reach.
May 2025 : Umicore joined Call2Recycle’s battery processing network in the U.S., enabling the company to process lithium-ion batteries from Call2Recycle collection sites and increasing North American recycling capacity.

Impact of Industry Transitions on the Battery Recycling Market

As a core segment of the Battery industry, the Battery Recycling market develops in line with broader industry shifts. Over recent years, transitions such as Global energy transition and Technology driven process evolution have redefined priorities across the Battery sector, influencing how the Battery Recycling market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Global energy transition

Driven by the global energy transition and rapid deployment of clean energy and e-mobility, the Battery Recycling industry is shifting from a regulatory obligation to a strategic growth engine. As utilities and OEMs scale lithium-ion batteries for energy storage and electric vehicles, end-of-life volumes will surge, unlocking an estimated additional $4 billion in Battery Recycling market growth by 2030. This expansion will accelerate investment in advanced hydrometallurgical and pyrometallurgical technologies, strengthen circular economy business models, and secure critical materials such as lithium, cobalt, and nickel for closed-loop supply chains. Players that rapidly build capabilities in collection, sorting, and high-yield resource recovery will be best positioned to capture rising demand from grid-scale storage, EV batteries and other high-value battery applications.
02

Technology driven process evolution

The industry is moving from traditional pyrometallurgical methods toward advanced hydrometallurgical and direct recycling technologies. These processes deliver higher recovery rates, lower energy consumption, and improved material purity. This transition is impacting associated industries such as mining, chemicals, and battery manufacturing by altering raw material demand patterns. As recycling output increasingly meets battery grade standards, it is reshaping long term material sourcing strategies across the global battery ecosystem.