Europe's Electric Vehicle Battery Recycling Market Size was valued at USD 1.9 Billion in 2022. The Electric Vehicle Battery Recycling market is projected to grow from USD 2.2 Billion in 2023 to USD 10.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.00% during the forecast period (2024 - 2032). The expanding need for zero-emission vehicles is one of the major market drivers driving the Electric Vehicle Battery Recycling market in Europe. Reducing natural resource utilization in battery production is receiving more attention and driving market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The European Electric Vehicle Battery Recycling market CAGR is expanding because consumer demand for electric vehicles (EVs) is rising due to growing environmental concerns. Growing EV sales are expected to result in more EVs when they reach the end of their useful lifetimes, raising the requirement for recycling all of the batteries used in electric vehicles. E.V.B. recycling companies are expected to expand their recycling capacity due to the rise in the total quantity of batteries bought and the increasing sales of E.V.s and batteries bought from sources that use used batteries. All of these factors are projected to support the growth of the electric vehicle battery recycling market.
Additionally, recycling automobile electric car batteries increasingly utilizes sustainable, clean fuels. Economists and environmentalists are concerned about the transportation system's heavy reliance on oil as fuel. Both environmental consciousness and the adoption of electric vehicles are rising. Because lithium-ion batteries are required for a steady power supply, the use of E.D.V.s and the need for these batteries is increasing. Energy efficiency, the reduction of pollution, and consumer adoption are some of the reasons expected to drive the growth of the E.V. market. Rising electric vehicle sales will spur the expansion of electric vehicle battery recycling because of improved battery technology and the low maintenance requirements of lithium-ion batteries. Furthermore, due to growing start-ups in the battery recycling sector, the European region has recently seen continued growth in the battery recycling industry. Energy storage initiatives in the area and the expanding market for electric vehicles are the other major forces behind battery recycling. The battery electric vehicle (BEV) market share reached a record 12.1 percent in 2022, up from 9.1 percent in 2021 and 1.9 percent in 2019, according to the European Automobile Manufacturers' Association, or ACEA. The market for battery recycling in Europe is likely to rise shortly due to this increase in market share. Fortum Battery Recycling opened for business at its cutting-edge hydrometallurgical battery material recycling facility in Harjavalta, Finland, in April 2023. Regarding recycling capacity, the recently constructed facility is the biggest in Europe. It is also the first commercial hydrometallurgical recycling factory in Europe. Thus, driving the Electric Vehicle Battery Recycling market revenue.
Based on Type, the Europe Electric Vehicle Battery Recycling market segmentation includes lithium-ion, lead acid, and others. The lithium-ion systems segment dominated the market. These features, including low self-discharge, high power-to-weight ratio, and outstanding high-temperature performance, all have a major positive impact on the environment compared to other fossil fuel alternatives. It is anticipated that the growing popularity of electric vehicles will have an immediate effect on lowering carbon emissions. These crucial factors could majorly impact market growth throughout the projection period. The lithium-ion automobile batteries market is growing for each of these reasons.
The lead-acid segment is expected to grow fastest. Because lead-acid batteries are heavy, inexpensive, and low maintenance, they are considered the ideal power source. This sub-segment is expected to grow due to the growing usage of lead-acid batteries in various applications, such as electric scooters, backup power supplies, and maritime applications, in addition to affordability, simplicity, and energy efficiency. Over 97% of lead-acid batteries in Europe are recycled, and over 75% of the lead used in brand-new lead-acid batteries comes from recycled batteries. The demand for lead-acid batteries is gradually rising for each of these reasons.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on Source, Europe's Electric Vehicle Battery Recycling segmentation includes end-of-life and production scrap. The production scrap category generated the most income because of the increasing shift toward EV manufacturing in countries like the United Kingdom. Cells in consumer electronics devices, such as laptops and other home appliances, and cell production scrap from failed batteries that pass quality control account for the majority of battery material still viable for recycling.
The end-of-life category is predicted to have the quickest rate due to a low recycling rate in this region. This is caused by various circumstances, such as how batteries are stored or hoarded, how they are disposed of without recycling, or how they are used in different contexts.
Based on Vehicle Type, Europe's Electric Vehicle Battery Recycling segmentation includes passenger cars, buses, vans, and others. The passenger car category has the largest market share. An increasing amount of money is invested in electric passenger cars, and there is a demand for them. It is projected that several government-sponsored programs, such as tax breaks, grants, and other non-financial benefits like access to carpool lanes, will greatly boost demand for electric passenger cars, propelling the EV battery recycling market forward during the forecast period.
The buses category is predicted to have the quickest rate due to the United Kingdom's use of electric vehicle technology in public transportation. Increasing the proportion of electric buses in their fleets for public transportation is a goal for several European economies. Because environmental rules are growing increasingly strict, demand for electric buses is expected to rise dramatically in the coming years. It is projected that the markets for electric buses and battery recycling will expand over the forecast period.
The largest market share is expected to be in Germany. Recycling these batteries can prolong their life cycle, reduce waste, and lessen the ecological impact of electric vehicle technology, all in line with the country's commitment to sustainability and environmental responsibility. Moreover, the need for effective energy storage solutions is rising due to Germany's developing renewable energy sector, typified by sporadic energy output from sources like solar and wind. The adoption of EV battery reuse in Germany is further boosted by the government's encouraging policies, subsidies, and incentives for sustainable practices and clean energy technologies.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Prominent industry participants are making significant R&D investments to broaden their range of products, contributing to the market expansion for Electric Vehicle Battery Recycling. In addition, market players are engaging in various strategic endeavors to broaden their market reach. Significant developments include introducing new products, contractual arrangements, mergers and acquisitions, increased investment levels, and cooperation with other entities. To grow and endure in an increasingly cutthroat and dynamic marketplace, the Electric Vehicle Battery Recycling sector must provide affordable products.
Businesses engaged in research and development are trying to boost demand for Electric Vehicle Battery Recycling from major participants in the market, including Battery Solutions LLC, Gopher Resource LLC, Ecobat Logistics, Terrapure BR Ltd., Retriev Technologies, COM2 Recycling Solutions, Call2Recycle, and Exide Technologies.
August 2021: FORTUM and Valmet Automotive have partnered to assure the safe and sustainable recycling of all non-conforming battery materials from Valmet Automotive's battery factories in Salo and Uusikaupunki. This will support both businesses' efforts to create a value chain based on sustainable development and a circular economy.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1.9Â Billion |
| Market Size 2023 | USD 2.2 Billion |
| Market Size 2032 | USD 10.5 Billion |
| Compound Annual Growth Rate (CAGR) | 21.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Source, Vehicle Type, and Region |
| Region Covered | Europe |
| Countries Covered | Germany, France, United Kingdom, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, and the Rest of Europe |
| Key Companies Profiled | Battery Solutions LLC, Gopher Resource LLC, Ecobat Logistics, Terrapure BR Ltd., Retriev Technologies, COM2 Recycling Solutions, Call2Recycle, and Exide Technologies |
| Key Market Opportunities | The increasing adoption of eco-friendly batteries Increase in the need for renewable energy storage |
| Key Market Dynamics | expanding need for zero-emission vehicles  The reduction of natural resource utilization in battery production is receiving more attention. |
Frequently Asked Questions (FAQ) :
The Europe Electric Vehicle Battery Recycling market size was valued at USD 2.2 Billion in 2023.
The market is projected to grow at a CAGR of 21.00% during the forecast period, 2024-2032.
The key players in the market are Battery Solutions LLC, Gopher Resource LLC, Ecobat Logistics, Terrapure BR Ltd., Retriev Technologies, COM2 Recycling Solutions, Call2Recycle, and Exide Technologies, among others.
The lithium-ion category dominated the market in 2023.
The production scrap category had the largest share of the market.
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