Global Li-ion Batteries Recycling Market Overview
The Li-ion Batteries Recycling Market size was valued at USD 5.01 Billion in 2024. The Li-ion Batteries Recycling Market industry is projected to grow from USD 5.98 Billion in 2025 to USD 33.22 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 20.1% during the forecast period (2025-2035).
The growing electric vehicle market and rising demand for recycled materials are driving the growth of the Li-ion Batteries Recycling Market.
As per the Analyst at MRFR, 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.
FIGURE 1: LI-ION BATTERIES RECYCLING MARKET VALUE (2019-2035) USD BILLION
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Li-ion Batteries Recycling Market Opportunity
Technological Advancements in Recycling Processes
Technological advancements in recycling processes present a significant opportunity for the lithium-ion (Li-ion) battery recycling market, enabling more efficient, cost-effective, and environmentally friendly methods for reclaiming valuable materials. As the demand for electric vehicles (EVs) and renewable energy storage systems escalate, innovations in recycling technology can help meet the challenges posed by an increasing volume of spent batteries.
One of the most promising developments is the emergence of hydrometallurgical recycling methods. Unlike traditional pyrometallurgical processes, which involve high-temperature smelting, hydrometallurgy utilizes aqueous solutions to selectively leach out valuable metals from spent batteries. This method not only reduces energy consumption but also minimizes greenhouse gas emissions, aligning with global sustainability goals. For example, companies like Li-Cycle are pioneering hydrometallurgical techniques that can recover up to 95% of lithium, nickel, and cobalt from used batteries. This approach not only enhances material recovery rates but also reduces the overall environmental impact of recycling.
Another area of technological advancement lies in the development of advanced separation technologies. Innovations such as selective dissolution and membrane filtration are improving the efficiency of material recovery from complex battery chemistry. These processes allow recyclers to separate different materials with greater precision, thereby maximizing the yield of valuable components. This is particularly important given the diversity of battery chemistries in circulation today, which can complicate traditional recycling methods. By employing these advanced techniques, companies can ensure higher quality and purity of the recovered materials, making them more suitable for reuse in new battery production.
Automation and artificial intelligence (AI) are also transforming the battery recycling landscape. Automated sorting systems can quickly and accurately identify different battery types and chemistries, streamlining the initial processing stage. AI algorithms can optimize the recycling process by predicting the best methods for material recovery based on the composition of incoming batteries. Such technologies not only enhance operational efficiency but also reduce labor costs and the potential for human error. As these systems become more sophisticated, they can help facilities scale up operations to handle increasing volumes of battery waste more effectively.
Furthermore, the integration of circular economy principles into recycling processes is being facilitated by advancements in technology. By creating closed-loop systems where materials are continuously recycled and reused, businesses can significantly reduce waste and dependence on virgin resources. For example, Tesla has announced plans to implement a battery recycling facility that integrates seamlessly with its manufacturing operations, allowing for the recovery of materials directly from its production lines. This not only enhances sustainability but also strengthens supply chain resilience, providing a reliable source of raw materials for new batteries.
In conclusion, technological advancements in recycling processes offer substantial opportunities for the Li-ion battery recycling market. Innovations in hydrometallurgy, advanced separation techniques, automation, and circular economy integration are all contributing to more efficient, cost-effective, and environmentally sustainable recycling operations. As these technologies continue to evolve, they will play a crucial role in supporting the growth of the recycling market, helping to meet the escalating demand for sustainable energy storage solutions.
Li-ion Batteries Recycling Market Segment Insights
Li-ion Batteries Recycling System by Source Insights
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.
FIGURE 2: LI-ION BATTERIES RECYCLING MARKET SHARE BY SOURCE 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Li-ion Batteries Recycling System by Recycling Process Insights
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.
Li-ion Batteries Recycling System by Battery Chemistry Insights
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.
Li-ion Batteries Recycling System by Battery Component Insights
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.
Li-ion Batteries Recycling System by End-Use Industry Insights
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.
Li-ion Batteries Recycling System Regional Insights
Based on the Region, the global Li-ion Batteries Recycling is segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Asia-Pacific dominated the global market in 2024, while the South America is projected to be the fastest–growing segment during the forecast period. 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.
FIGURE 3: LI-ION BATTERIES RECYCLING MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, France, UK, Spain, Finland, Italy, Netherlands, Poland, Norway, Switzerland, Austria, Hungary, Sweden, China, India, Japan, South Korea, Brazil, Argentina, Saudi Arabia, Oman, Qatar, UAE, South Africa and others.
Global Li-ion Batteries Recycling Key Market Players & Competitive Insights
Many global, regional, and local vendors characterize the Li-ion Batteries Recycling Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major players in the market include Redux GmbH, Umicore, BATREC Industrie AG, Accurec Recycling Gmbh, Duesenfeld, Li-Cycle, Glencore, Fortum, Neometals, AkkuSer are among others. The Li-ion Batteries Recycling Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Li-ion Batteries Recycling Market include
- Redux GmbH
- Umicore
- BATREC Industrie AG
- Accurec Recycling Gmbh
- Duesenfeld
- Li-Cycle
- Glencore
- Fortum
- Neometals
- AkkuSer
Li-ion Batteries Recycling Market Industry Developments
17 August 2023: Umicore has developed a proprietary approach to battery recycling that is more effective, efficient, scalable, and sustainable than other techniques and processes. Pioneered in Belgium by our R&D team, this is the inside story of how we developed this market-leading solution. As the use of electric vehicles (EVs) grows exponentially around the world, the need for solutions to recycle end-of-life EV batteries and production scrap is also rapidly accelerating. With more than 15 years’ experience in battery recycling, Umicore is at the forefront of innovative efforts to create an efficient and sustainable battery recycling process. Increasing production capacity to meet demand, Umicore is gearing up for significant expansion in battery recycling in Europe. It will incorporate proprietary metal extraction technologies, developed by Umicore’s research teams and built by its engineering teams, with the lowest environmental impact and highest yield of recovered critical raw materials and metals.
9 December 2022: ACCUREC will now expand its processing technology to include a recovery plant for lithium from rechargeable devices and electromobility at its Krefeld site. The plant, with a planned initial throughput of 4,000 tons of spent batteries, will be the first in Europe to reach an industrial scale. For about 8 years, Accurec has been dedicated to the challenges of spent Li-ion batteries and has already invested more than €20 million. Based on several research and implementation projects in cooperation with universities and equipment manufacturers, it will now be possible to recover the resource-critical lithium with about 99% purity as carbonate from the Li-ion batteries in electric vehicles, electronic devices, e-scooters and e-bikes through the in-house developed HydroLiC process.
29 November 2021: Li-Cycle Holdings Corp., an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, announced a collaboration with Arrival, a global company that is on a mission to make air clean by replacing all vehicles with affordable electric solutions produced by local micro factories. Through this newly established collaboration, Li-Cycle and Arrival will work together on thought leadership initiatives and R&D efforts to improve lithium-ion battery recycling, while also working together to improve the efficiency of the EV battery supply chain in the U.S. and Europe.
3 August 2020: Project development company Neometals Ltd, based in West Perth, Australia, and SMS group GmbH in Germany have announced the creation of a 50:50 joint venture. The object of this enterprise is the commercialization of joint recycling technology for lithium-ion batteries (LIBs). In this way, valuable materials can be recovered from vehicle batteries and storage batteries for electronic devices using a particularly sustainable process. To achieve this, SMS group is pooling its comprehensive experience in mechanical engineering and services with the process expertise of Neometals. With Primobius, SMS group is pursuing its consistent strategy of developing new business models as a systems supplier to enable sustainable value chains, among other objectives. Neometals will lend its technical and commercial expertise, including in recycling technology, to the joint venture. SMS group's contribution will be the engineering and construction of commercial recycling facilities. Moreover, SMS group intends to handle the operation and maintenance of the equipment.
Li-ion Batteries Recycling Market Segmentation
Li-ion Batteries Recycling by Source Outlook
- Electronics
- Electric Vehicle
- Power Tools
- Others
Li-ion Batteries Recycling by Recycling Process Outlook
- Hydrometallurgical
- Pyrometallurgical
- Mechanical
- Others
Li-ion Batteries Recycling by Battery Chemistry Outlook
- Lithium Cobalt Oxide
- Lithium Iron Phosphate
- Lithium Manganese Oxide
- Lithium Nickel Cobalt Aluminum Oxide
- Lithium Nickel Manganese Cobalt Oxide
Li-ion Batteries Recycling by Battery Component Outlook
- Active Material
- Non-Active Material
Li-ion Batteries Recycling by End-Use Industry Outlook
- Consumer Electronics
- Automotive
- Energy Storage System
- Others
Li-ion Batteries Recycling Regional Outlook
- North America
- Europe
- Germany
- France
- UK
- Spain
- Finland
- Italy
- Netherlands
- Poland
- Norway
- Switzerland
- Austria
- Hungary
- Sweden
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- Oman
- Qatar
- UAE
- South Africa
- Rest of Middle East & Africa
| Report Attribute/Metric |
Details |
| Market Size 2024 |
USD 5.01 Billion |
| Market Size 2025 |
USD 5.98 Billion |
| Market Size 2035 |
USD 33.22 Billion |
| Compound Annual Growth Rate (CAGR) |
20.1% (2025-2035) |
| Base Year |
2024 |
| Forecast Period |
2025-2035 |
| Historical Data |
2019-2023 |
| Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
By Source, By Recycling Process, By Battery Chemistry, By Battery Component, By End-User Industry |
| Geographies Covered |
North America, Europe, Asia Pacific, South America, Middle East & Africa |
| Countries Covered |
The US, Canada, Mexico, Germany, France, UK, Spain, Finland, Italy, Netherlands, Poland, Norway, Switzerland, Austria, Hungary, Sweden, China, India, Japan, South Korea, Brazil, Argentina, Saudi Arabia, Oman, Qatar, UAE, South Africa. |
| Key Companies Profiled |
Redux GmbH, Umicore, BATREC Industrie AG, Accurec Recycling Gmbh, Duesenfeld, Li-Cycle, Glencore, Fortum, Neometals, AkkuSer  |
| Key Market Opportunities |
·        Technological advancements in recycling processes ·        Partnerships and Collaborations |
| Key Market Dynamics |
·        Growing electric vehicle market ·        Rising demand for recycled materials |
Frequently Asked Questions (FAQ) :
USD 33.22 Billion is the Li-ion Batteries Recycling Market in 2035.
The Hydrometallurgical segment by Recycling Process holds the largest market share and grows at a CAGR of 18.6 % during the forecast period.
Asia-Pacific holds the largest market share in the Global Li-ion Batteries Recycling Market.
Redux GmbH, Umicore, BATREC Industrie AG, Accurec Recycling Gmbh, Duesenfeld, Li-Cycle, Glencore, Fortum, Neometals, AkkuSer are the prominent players in the Global Li-ion Batteries Recycling Market.
The Active Material segment dominated the market in 2024.
