Battery Recycling Industry's Revenue Projected to Exceed USD 69.4 Billion by 2034, Fueled by a Compound Annual Growth Rate of 13.6%
In the rapidly expanding global battery recycling market, Umicore has taken a significant step forward by inaugurating phase two of its Li-Refinery in Hobart, Tasmania. This expansion will increase the recycling capacity of battery-grade nickel and cobalt to 14,000 tonnes per year by 2026.
The growth of the global battery recycling market is driven by the increasing adoption of electric vehicles, renewable energy storage, and consumer electronics. The recovery of essential raw materials like lithium, cobalt, nickel, and manganese is crucial for mitigating supply chain risks and environmental impacts.
The market is dominated by lithium-ion batteries, given their widespread use in EVs and consumer electronics. Recycling lithium-ion batteries is particularly important due to the value of recovered materials. Technologies used in recycling include hydrometallurgical, pyrometallurgical, mechanical, and direct recycling processes, with hydrometallurgical and direct recycling gaining prominence for their better material recovery and reduced energy footprint.
The end-use segments include the automotive, consumer electronics, and other sectors. While consumer electronics currently lead in terms of battery usage, the automotive sector, driven by EV growth, is becoming increasingly important for battery recycling.
Asia-Pacific is a dominant region in the global battery recycling market, with countries like China, Japan, and South Korea playing significant roles. The region benefits from robust manufacturing capacities and government support for new energy technologies. It is also a major hub for battery recycling and supply chain development, reducing reliance on global services.
The global battery recycling market is projected to grow at a Compound Annual Growth Rate (CAGR) of 37.62%, reaching USD 62.7 billion by 2034 from USD 3.44 billion in 2025. In the Asia-Pacific region, growth is fueled by strong manufacturing capabilities, EV production, and consumer electronics demand. Governments in this region are also implementing policies to enhance recycling capabilities and reduce environmental impact.
Future trends in Asia-Pacific include policy support, technological advancements, and market expansion. Governments in the region are enforcing stricter regulations to ensure sustainable battery waste management, promoting a circular economy and reducing reliance on imported materials. Continued advancements in recycling technologies will improve material recovery rates and reduce the environmental footprint of recycling processes. The establishment of more recycling facilities in countries like China and Japan will further strengthen regional recycling capabilities and supply chains.
Key players in the battery recycling sector include BASF SE, Accurec Recycling GmbH, Fortum, Glencore, Umicore, Exide Industries Ltd, Gravita India Ltd, Li-Cycle, RecycLiCo Battery Materials, Tata Chemicals Ltd, American Battery Technology Company, Cirba Solutions, Gopher Resource LLC, East Penn Manufacturing, Aqua Metals, Eco-Bat Technologies, Ganfeng Lithium Group Co., Ltd, Lithion Recycling Inc, EnerSys, Redwood Materials, Inc, Element Resources LLC, Contemporary Amperex Technology Co. Limited, Stena Recycling, REDUX Recycling GmbH, and other key players.
Notable developments include Li-Cycle securing a US $475 million Department of Energy loan to fund its Rochester (NY) "Hub" recycling plant, but facing financial challenges and undergoing executive restructuring. In 2024, the Asia Pacific region led the global battery recycling market, accounting for 39.4% of the market share, driven by stringent environmental regulations and the growing adoption of electric vehicles (EVs). Exide Industries launched a pilot lithium-ion battery recycling unit in Kamalganj, India, capable of processing 1,200 tonnes/year of end-of-life batteries.
The U.S. tariffs on Chinese-made batteries, which are expected to rise to 82% by January 2026, will significantly increase the cost of imported batteries, potentially doubling their price. The battery recycling sector is poised to contribute significantly to resource security, environmental protection, and the sustainability of global battery supply chains.
In conclusion, Umicore's expansion in Tasmania is a significant step forward in the global battery recycling market, which is experiencing robust growth due to the increasing adoption of electric vehicles, renewable energy storage, and consumer electronics. The recovery of essential raw materials like lithium, cobalt, nickel, and manganese is crucial for mitigating supply chain risks and environmental impacts, and the Asia-Pacific region, led by countries like China, Japan, and South Korea, is at the forefront of this global effort.
- To meet the growing demand for renewable energy and electric vehicles, the global battery recycling market is witnessing considerable investment from businesses and finance sectors.
- As the housing market and real estate industries recognize the potential of sustainable technologies, commercial buildings are being retrofitted with renewable energy solutions, further increasing the need for battery recycling.
- Given the environmental and economic importance of recycling essential materials like lithium, cobalt, nickel, and manganese, it's essential for the industry to adopt advanced recycling technologies like hydrometallurgical and direct recycling processes.
- Technological innovations and policy reforms in the Asia-Pacific region will open up new opportunities for investing in the battery recycling sector, benefiting both local economies and the global fight against climate change.
- The exponential growth of the global battery recycling market is attracting key players, such as Umicore, BASF SE, and Li-Cycle, to expand their operations and contribute to a more sustainable and secure energy future.
