Lithium-ion Battery Recycling Market size was over USD 3.64 billion in 2023 and is poised to reach USD 47.26 billion by the end of 2036, witnessing around 21.8% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of lithium-ion battery recycling is assessed at USD 4.27 billion.
The growth of the market can be attributed to the rising use of battery-operated electric vehicles, and the increasing level of air pollution in recent years due to combustion of diesel and gasoline in conventional automobiles. The total number of electric vehicles (EV) sold worldwide grew by approximately 2 million from 2018 to 2019. More than 7 million EVs were sold in 2019. Apart from these, growing concerns regarding battery disposal and decline in the price of lithium-ion batteries are also estimated to drive market growth in the coming years. Furthermore, the properties of lithium-ion batteries such as favorable capacity-to-weight ratio and lower self-discharge rate than other batteries are expected to boost their demand in the near future.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
21.8% |
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Base Year Market Size (2023) |
USD 3.64 billion |
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Forecast Year Market Size (2036) |
USD 47.26 billion |
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Regional Scope |
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The lithium-ion battery recycling market is segmented by chemistry into lithium-manganese oxide (LMO), lithium-titanate oxide (LTO), lithium-nickel cobalt aluminum oxide (NCA), lithium-nickel manganese cobalt (Li-NMC), lithium-iron phosphate (LFP), and lithium-cobalt oxide (LCO), out of which, the lithium-nickel manganese cobalt segment is estimated to hold the leading share over the forecast period on the back of growing adoption of lithium-nickel manganese cobalt batteries for power tools, electric powertrain, and medical devices. Additionally, based on industry, the automotive segment is projected to grab the largest market share by the end of 2029 owing to the staggering adoption of lithium-ion batteries as a result of the ability of these batteries offer high energy and power density to the vehicle. The segment for power industry is also projected to hold a significant market share, which can be credited to the increasing production volumes for the end user of this industry in developing nations.
Our in-depth analysis of the global market includes the following segments:
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By Chemistry |
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By Technology |
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By Industry |
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On the basis of geographical analysis, the lithium-ion battery recycling market is segmented into five major regions, including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The Asia Pacific industry is predicted to account for largest revenue share by 2036, led by rising demand for electric vehicles in major economies of the region such as Japan, China, and India. In addition, China is currently the largest manufacturer of lithium-ion battery for electric vehicles. China manufactured more than 70% of total lithium cells in the world in 2019. Moreover, increasing R&D investment by Indian government for developing efficient hybrid vehicles is also anticipated to fuel the growth of the region. Furthermore, Europe is expected to witness significant market growth in the forecast period owing to huge number of clean energy generation targets in the region and growing willingness of companies to develop technologies to treat different types of battery chemistries.
Author Credits: Rajrani Baghel
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