rising demand for recycled materials are driving the growth of the Li-ion Batteries Recycling Market at a CAGR of 20.1% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Li-ion Batteries Recycling Market” that contains the information from 2019 to 2035.

The Global Li-ion Batteries Recycling Market is estimated to register a CAGR of 20.1% during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Li-ion Batteries Recycling Market — Redux GmbH, Umicore, BATREC Industrie AG, Accurec Recycling Gmbh, Duesenfeld, Li-Cycle, Glencore, Fortum, Neometals, AkkuSer and others.

The Global Li-ion Batteries Recycling Market is accounted for registering a CAGR of 20.1% during the forecast period and is estimated to reach USD 33.22 Billion by 2035.

The growing electric vehicle (EV) market serves as a crucial driver for the Li-ion battery recycling industry, creating a complex interplay of demand and responsibility. As global sales of electric vehicles increase—projected to reach millions in the coming years—the need for batteries, which power these vehicles, expands correspondingly. LIBs are currently the most suitable batteries for EV applications. Consequently, the demand for LIBs has increased dramatically, which jumped from 185 GWh in 2020 to 685 GWh in 2024 and will exceed 2035 GWh by 2030, according to the statistical data from Statista. Each EV typically requires a significant battery pack, and as these vehicles age, the number of batteries reaching their end-of-life stage will surge. This creates an urgent demand for efficient and sustainable recycling solutions that can handle the influx of used batteries. Addressing the end-of-life management of these batteries is vital to ensuring that the environmental benefits of EVs are fully realized, making recycling an integral part of the EV ecosystem.

Government policies and incentives play a pivotal role in shaping the landscape for battery recycling as the EV market grows. Many nations are enacting stricter regulations concerning battery disposal and recycling, motivated by environmental concerns and the need to manage hazardous materials. These regulations often include mandates for manufacturers to take responsibility for their batteries throughout their lifecycle, encouraging the establishment of take-back programs and recycling initiatives. Additionally, financial incentives such as grants, tax credits, and subsidies are being offered to both consumers and businesses to promote recycling practices. Such supportive policy frameworks not only drive the demand for recycling services but also stimulate investments in recycling infrastructure, ensuring that as more EVs are deployed, there are robust systems in place to handle their batteries responsibly. For instance, the European Union has introduced Battery Regulation, which aims to enhance battery sustainability through mandatory recycling targets and extended producer responsibility (EPR) schemes. This regulation will require manufacturers to ensure that used batteries are collected and recycled, thus driving the demand for recycling services as EV adoption rises

Consumer attitudes toward sustainability are also shifting significantly, influencing corporate strategies in the automotive sector. Today’s consumers are increasingly aware of environmental issues and are demanding that manufacturers adopt sustainable practices. This pressure has led many automakers to embrace corporate social responsibility initiatives, focusing on the entire lifecycle of their products, including the management of battery disposal. As a result, companies are investing in recycling programs and forming partnerships with recycling firms to ensure a closed-loop system for battery materials. By doing so, they not only enhance their brand reputation but also align themselves with the values of environmentally conscious consumers, thus driving greater participation in recycling efforts.

Finally, the emergence of second-life applications for EV batteries presents a unique opportunity that ties back to recycling. When EV batteries degrade and no longer meet the stringent performance requirements for vehicle use, they can still serve significant roles in energy storage solutions, such as grid stabilization or renewable energy storage. This potential for secondary use not only extends the lifecycle of the battery but also highlights the importance of effective recycling methods to recover materials when these batteries eventually reach the end of their second life. As the demand for energy storage systems grows alongside the deployment of renewable energy sources, the interconnection between EVs and battery recycling becomes even more apparent, underscoring the critical role recycling plays in supporting a sustainable energy future. Together, these factors create a robust framework for the Li-ion battery recycling market, intricately linked to the expanding electric vehicle sector.

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Segmental Analysis

The Global Li-ion Batteries Recycling Market has been segmented based on by Source, by Recycling Process, by Battery Chemistry, by Battery Component and by End-Use Industry.

Based on Source, this segment includes Electronics, Electric Vehicle, Power Tools, Others. The Electronics segment dominated the global market in 2024, while the Electric Vehicle segment is projected to be the fastest–growing segment during the forecast period. Electronics sources play a crucial role in the lithium-ion batteries recycling market, as a significant portion of these batteries is found in consumer electronics such as smartphones, laptops, tablets, and other portable devices. As the demand for electronics continues to rise, so does the volume of end-of-life lithium-ion batteries that require efficient recycling solutions. Recycling these batteries not only helps recover valuable materials like lithium, cobalt, and nickel, which are essential for new battery production, but it also mitigates the environmental impact associated with improper disposal.

Based on the Recycling Process, this segment includes Hydrometallurgical, Pyrometallurgical, Mechanical, Others. The Hydrometallurgical segment dominated the global market in 2024, while the others segment is projected to be the fastest–growing segment during the forecast period.  The hydrometallurgical recycling process for lithium-ion batteries involves the use of aqueous solutions to selectively extract valuable metals from spent batteries. Initially, the batteries are mechanically processed to reduce their size and liberate the materials. The resulting materials are then treated with specific leaching agents, typically acids or alkaline solutions, which dissolve metals such as lithium, cobalt, nickel, and manganese into a liquid solution. This process allows for the separation of metals based on their chemical properties, enabling efficient recovery and purification. Following leaching, various techniques such as precipitation, solvent extraction, or ion exchange are employed to isolate and concentrate the desired metals from the solution.

Based on Battery Chemistry, this segment includes Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Manganese Oxide, Lithium Nickel Cobalt Aluminum Oxide, Lithium Nickel Manganese Cobalt Oxide. The Lithium Cobalt Oxide segment dominated the global market in 2024, while the Lithium Iron Phosphate segment is projected to be the fastest–growing segment during the forecast period. Lithium Cobalt Oxide (LCO) is one of the most used in lithium-ion batteries, particularly for portable electronics such as smartphones and laptops. Its high energy density makes it a favored choice for applications requiring compact and lightweight battery solutions. However, the recycling of LCO batteries poses specific challenges due to the presence of cobalt, which is both valuable and environmentally hazardous when improperly disposed of. Efficient recycling processes are essential to recover cobalt and lithium from these batteries, enabling the reintegration of these materials into the production cycle. As demand for cobalt continues to rise, the recycling of LCO batteries is becoming increasingly important for resource sustainability and mitigating the environmental impact associated with cobalt mining.

Based on the Battery Component, this segment includes Active Material and Non-Active Material. The Active Material segment dominated the global market in 2024, while the Non-Active Material segment is projected to be the fastest–growing segment during the forecast period. Active materials in lithium-ion batteries refer to the key components that directly participate in electrochemical reactions during charging and discharging. These include cathode and anode materials, such as lithium cobalt oxide (LCO), lithium iron phosphate (LFP), graphite, and various nickel-manganese-cobalt combinations. The recycling of active materials is crucial for recovering valuable metals and lithium, thereby reducing reliance on virgin resources. Advanced recycling processes aim to efficiently extract these active materials, allowing them to be reintroduced into the production cycle. As the demand for lithium-ion batteries continues to rise, particularly in electric vehicles and renewable energy storage, the recycling of active materials becomes essential for promoting sustainability and minimizing environmental impacts associated with battery disposal.

Based on the End-Use Industry, this segment includes Consumer Electronics, Automotive, Energy Storage System, Others. The Consumer Electronics segment dominated the global market in 2024, while the Automotive segment is projected to be the fastest–growing segment during the forecast period. The consumer electronics segment is one of the largest end-users of lithium-ion batteries, powering a wide range of devices such as smartphones, laptops, tablets, and wearable technology. As the demand for these devices continues to grow, so does the volume of end-of-life batteries that require recycling. Efficient recycling processes for lithium-ion batteries from consumer electronics are essential for recovering valuable materials like lithium, cobalt, and nickel, which can be reused in new battery production. Furthermore, as consumer awareness of sustainability increases, manufacturers are under pressure to implement responsible recycling practices.

Regional Analysis

Geographically, the Global Li-ion Batteries Recycling Market has been segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa.

Major demand factors driving the Asia-Pacific market are the growing electric vehicle market and rising demand for recycled materials. Countries like China, Japan, and South Korea are key players in both battery manufacturing and recycling, with significant investments being made in advanced recycling technologies to address the rising volume of spent batteries. The region's focus on technological innovation, combined with government support for sustainable practices, is enhancing the efficiency of recycling processes. As the demand for lithium and other critical materials escalates, the Asia Pacific market is positioning itself as a major hub for recycling activities, ensuring a steady supply of materials for future battery production.

In North America, key players in the region are investing in advanced recycling technologies to enhance material recovery rates and reduce environmental impacts. The presence of major automotive manufacturers and tech companies further accelerates demand for efficient recycling solutions. Additionally, growing consumer awareness of sustainability issues is prompting both businesses and individuals to prioritize responsible recycling. Collaborative efforts between industry stakeholders and government initiatives are also playing a crucial role in establishing a robust recycling infrastructure in North America.

Europe is at the forefront of the lithium-ion battery recycling market, largely due to stringent environmental regulations and ambitious sustainability targets set by the European Union. The region's commitment to a circular economy has driven significant investments in recycling technologies and facilities, aimed at recovering valuable materials from spent batteries. With a strong focus on reducing dependence on raw materials, European countries are actively promoting the recycling of lithium-ion batteries, particularly from electric vehicles and consumer electronics. Moreover, public awareness and support for green initiatives are high, encouraging manufacturers to adopt sustainable practices throughout the battery lifecycle. This proactive approach positions Europe as a leader in battery recycling innovation.

The lithium-ion battery recycling market in South America is gradually gaining traction, influenced by the increasing adoption of electric vehicles and renewable energy technologies. While the market is still developing, countries such as Brazil and Argentina are beginning to recognize the importance of establishing recycling infrastructures to manage the growing volume of spent batteries. Local governments and industry stakeholders are exploring collaborative efforts to promote responsible recycling practices, driven by environmental concerns and the need to recover valuable materials. As awareness of sustainability issues rises, the South American market is poised for growth, presenting opportunities for investment in recycling technologies and facilities to support a circular economy.

The lithium-ion battery recycling market in the Middle East and Africa is in its nascent stages, yet it presents significant potential for growth. As the demand for electric vehicles and renewable energy solutions begins to rise in this region, the need for effective recycling practices is becoming increasingly apparent. Countries are starting to explore initiatives aimed at enhancing awareness of recycling benefits and developing infrastructure to manage battery waste. Investment in technology and partnerships with established recycling firms could help accelerate the market's growth. Moreover, as global sustainability trends gain traction, the Middle East and Africa can leverage their unique resources to establish themselves as emerging players in the lithium-ion battery recycling landscape.

Key Findings of the Study

• The Global Li-ion Batteries Recycling Market is expected to reach USD 33.22 Billion by 2035, at a CAGR of 1% during the forecast period.


• The Asia Pacific region accounted for the fastest-growing global market.


• Based on Source, the Electronics segment was attributed to holding the largest market in 2024.


• Redux GmbH, Umicore, BATREC Industrie AG, Accurec Recycling Gmbh, Duesenfeld, Li-Cycle, Glencore, Fortum, Neometals, AkkuSer and others are some of the players in the market.