EV Battery Recycling Market

Market Definition

The market encompasses the collection, disassembly, material recovery, and repurposing of end-of-life electric vehicle batteries. It includes processes for extracting valuable components such as lithium, cobalt, and nickel. It covers services and technologies in recycling infrastructure, battery logistics, and secondary applications. 

The market spans the automotive, energy storage, and industrial sectors, addressing sustainability mandates, resource circularity, and regulatory compliance across global electric mobility and battery supply chains. This report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping the industry’s growth.

EV Battery Recycling Market Overview

The global EV battery recycling market size was valued at USD 930.4 million in 2024 and is projected to grow from USD 1264.9 million in 2025 to USD 11134.0 million by 2032, exhibiting a CAGR of 36.30% during the forecast period. 

Risiing electric vehicle adoption and advanced battery technologies are creating a strong demand for specialized recycling methods that efficiently recover valuable materials and support global sustainability goals.

Major companies operating in the EV battery recycling industry are LOHUM., Umicore, Hosokawa Micron Group, SUNY GROUP., Attero, ReBAT., BATX Energies., zhengzhou Guanma Machinery Equipment Co., Redwood Materials Inc., Li-Cycle Corp., Glencore, Ganfeng Lithium Group Co., Ltd, Fortum, GEM Co., Ltd., and Primobius GmbH.

Surging investments and escalating funding across sustainable technologies are propelling the growth of the market. Capital inflow from venture firms, government grants, and corporate stakeholders accelerates infrastructure development, process innovation, and scalability. 

Financial backing enhances supply chain efficiency and ensures technological advancements, supporting market expansion. Strategic funding is fostering the commercialization of recycling solutions, aligning with circular economy goals and ensuring regulatory compliance.

• In November 2024, the Society of Chemical Industry (SCI) reported that the U.S. government is providing USD 44.8 million in funding for eight research projects aimed at reducing the cost of recycling electric vehicle (EV) batteries and components. 

Key Highlights:

1. The EV battery recycling market size was valued at USD 930.4 million in 2024.
2. The market is projected to grow at a CAGR of 36.30% from 2025 to 2032.
3. Asia Pacific held a market share of 35.05% in 2024, with a valuation of USD 326.1 million.
4. The lithium-ion segment garnered USD 336.9 million in revenue in 2024.
5. The pyrometallurgical segment is expected to reach USD 4645.6 million by 2032.
6. The commercial vehicles segment is set to grow at a robust CAGR of 36.43% through the forecast period.
7. North America is anticipated to grow at a CAGR of 36.87% during the forecast period.

Market Driver

Surging Electric Vehicle Adoption

The growth of the market is primarily fueled by the accelerating adoption of electric vehicles, which significantly increases the volume of end-of-life batteries. This rise highlights the need for advanced recycling solutions and ensures a steady supply of recyclable materials. 

Growing EV deployment compelling industry players to enhance recycling capabilities, support resource optimization, and ensure alignment with global sustainability regulations.

• In May 2025, the International Energy Agency (IEA) reported that global electric car sales continued to reach new highs as electric vehicles became more cost-effective. In 2024, over 17 million electric cars were sold worldwide, pushing their share of the global car market above 20%. During the first quarter of 2025, electric car sales increased by 35% compared to the same period last year.

Market Challenge

Limited Infrastructure and Capacity Constraints

The expansion of the EV battery recycling market is constrained by limited infrastructure and insufficient capacity to handle the rapidly increasing end-of-life batteries. This creates delays and raises costs, hindering efficient resource recovery and circular economy goals. To address this, manufacturers are expanding recycling facilities and adopting modular, scalable processing systems to increase throughput. 

Additionally, they are collaborating with governments and stakeholders to develop standardized collection networks and policies that incentivize recycling. These efforts aim to build a robust, cost-effective, and sustainable recycling ecosystem capable of meeting future market demands.

Market Trend

Adoption of Graphene-Enhanced LMFP Materials

The integration of graphene enhanced lithium manganese iron phosphate (LMFP) materials in lithium-ion batteries is emerging as a key trend in the market. This improves battery efficiency and lifespan, leading to a shift in recycling processes tailored to recover novel materials. 

The market is evolving to accommodate specialized recycling techniques that address these high-performance battery chemistries, reflecting technological progress in battery design.

• In July 2024, Fu'an Qingmei Energy Materials Co., Ltd. and Wuhan Power Battery Recycling Technology Co., Ltd. signed the "Strategic Cooperation Agreement on the Joint Development and Market Expansion of Graphene Lithium (Manganese) Iron Phosphate Material Industrialization Technology" with Shenzhen Eigen Equation Graphene Technology Co., Ltd. The three parties combined their technological, industrial, and market strengths to develop the industrialization technology for graphene-enhanced lithium (manganese) iron phosphate (LMFP) materials beginning with the recycling and use of lithium iron phosphate batteries and waste.

EV Battery Recycling Market Report Snapshot

Segmentation	Details
By Battery	Lithium-ion, Lead-acid, Nickel-based
By Process	Pyrometallurgical, Hydrometallurgical, Direct Recycling
By Vehicle	Passenger cars, Commercial vehicles, Two-wheeler
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Battery (Lithium-ion, Lead-acid and Nickel-based): The lithium-ion segment earned USD 336.9 million in 2024, on account of its widespread use in electric vehicles, high demand for valuable recyclable materials such as cobalt and lithium, and established recycling technologies that make recovery economically viable.
• By Process (Pyrometallurgical, Hydrometallurgical and Direct Recycling): The pyrometallurgical segment held a share of 42.13% in 2024, due to its efficient processing of large volumes of batteries for high-value metal recovery, making it economically advantageous for industrial-scale recycling.
• By Vehicle (Passenger cars, Commercial vehicles, and Two-wheeler): The passenger cars segment is projected to reach USD 4458.9 million by 2032, owing to the high volume of electric passenger vehicles , leading to a larger supply of end-of-life batteries for recycling.

EV Battery Recycling Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia Pacific EV battery recycling market share stood at around 35.05% in 2024 in the global market, with a valuation of USD 326.1 million. This dominance is attributed to the widespread adoption of electric vehicle across the region. 

Strong government support, expanding manufacturing infrastructure, and strict environmental regulations have accelerated the need for efficient battery recycling solutions. The presence of key industry players and continued investments in advanced recycling technologies are further strengthening regional market. This strategic alignment with sustainability goals positions it as a leading region for EV battery recycling.

• According to the International Council on Clean Transportation, India’s electric mobility revolution saw EV sales rise to 1.9 million units in 2024, a 19% increase over 2023, along with the addition of 25,202 public charging stations. These developments reflect India’s commitment to sustainable transport, driven by the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

The North America EV battery recycling industry is set to grow at a robust CAGR of 36.87% over the forecast period. The growth is propelled by the increase in demand for critical raw materials such as lithium, cobalt, and nickel. Supply chain disruptions and high import costs have intensified the need for domestic recycling solutions. 

Furthermore, increasing electric vehicle sales and the growing focus on resource efficiency is compelling manufacturers to invest heavily in recycling technologies, fostering regional market expansion.

Regulatory Frameworks

• In the U.S., the Resource Conservation and Recovery Act (RCRA) by the Environmental Protection Agency (EPA) regulates the management of hazardous waste, including spent lithium-ion batteries that display hazardous traits such as ignitability. The act mandates the proper handling, storage, transportation, and disposal of used EV batteries to prevent environmental harm. Depending on state-specific regulations, these batteries may be classified as either hazardous waste or universal waste.  RCRA ensures that used EV batteries are managed safely to protect both public health and the environment.
• In India, the Battery Waste Management Rules, issued by the Ministry of Environment, Forest and Climate Change, place the responsibility on battery manufacturers, importers, and assemblers to manage end-of-life batteries through Extended Producer Responsibility (EPR). These rules mandate the collection, recycling, and environmentally sound disposal of used batteries. They set progressively increasing targets for collection and recycling, require producers to register with the Central Pollution Control Board (CPCB), and mandate regular reporting on their collection and recycling efforts. Additionally, the rules establish standards for environmentally responsible recycling to ensure the safe recovery of valuable materials and to prevent environmental pollution.

Competitive Landscape

The EV battery recycling market’s competitive landscape is shaped by strategic alliances with leading companies aimed at strengthening technological expertise and broadening market presence. These collaborations prioritize improving supply chain management, advancing recycling technologies, and maximizing sustainable resource recovery. 

By fostering innovation, lowering operational costs, and ensuring adherence to regulatory standards such partnerships enable participants to maintain a competitive edge. These joint efforts are essential for scaling infrastructure and addressing the increasing demand for circular economy solutions within the electric vehicle industry.

• In December 2023, LOHUM Cleantech announced its expansion into the UAE and planned to build the first EV battery recycling plant. In a partnership with the UAE Ministry of Energy & Infrastructure and BEEAH, the facility covered 80,000 sq ft, recycled 3,000 tons of lithium-ion batteries annually, and repurposed 15 MWh of battery capacity into sustainable energy storage, meeting over 80% of EV battery demand.

List of Key Companies in EV Battery Recycling Market:

• LOHUM.
• Umicore
• Hosokawa Micron Group
• SUNY GROUP. 
• Attero
• ReBAT.
• BATX Energies.
• zhengzhou Guanma Machinery Equipment Co.
• Redwood Materials Inc.
• Li-Cycle Corp.
• Glencore
• Ganfeng Lithium Group Co., Ltd 
• Fortum
• GEM Co., Ltd.
• Primobius GmbH

Recent Developments (Partnerships/Agreements)

• In June 2024, Fortum Battery Recycling and Marubeni Corporation signed a preliminary agreement and a memorandum of understanding to jointly develop a sustainable lithium-ion battery recycling chain, focusing on graphite recycling. Marubeni actively supported Fortum by supplying in-process waste materials and process chemicals and explored opportunities to recycle graphite and lithium, with the goal of meeting market demand through building a strong recycling value chain.
• In December 2024, Li-Cycle Holdings Corp. a lithium-ion battery resource recovery company, resumed its partnership with Glencore International AG, a wholly-owned subsidiary of Glencore plc, a producer, recycler, and marketer of nickel and cobalt for lithium-ion battery production. They evaluated the technical and economic feasibility of establishing a new Hub facility in Portovesme Italy to produce critical battery materials such as lithium nickel and cobalt from recycled battery content including a concept and pre-feasibility study.
• In June 2024, GM and Lithion Recycling partnered, backed by GM Ventures, to advance battery recycling. They aim to validate recycled materials for new batteries, enhance recycling technology, and improve future battery recyclability through joint research and development.