Driven by the rapid implementation of electric vehicles, the need for battery recycling grows with it and the world’s transportation battery recycling market is expected to generate nearly $10.3 billion by 2030, according to a new report.
Some challenges exist in the market, according to the Research Drive report, such as it being a newer field with not much foundation for the process, including technical aspects, design for recycling and an easy disassembly method of the batteries. Still, with the huge growth in electric vehicles and other uses, the battery recycling market is expected to grow year over year by 9% through 2030.
The report says that the lead-acid battery sub-segment will surpass $6.7 billion over that time period. That is due to it being the most common type of large-capacity rechargeable batteries, which are also dependable and inexpensive, Research Drive says.
Lithium-based battery recycling is expected to grow from $716 million in 2020 to nearly $1.8 billion in 2030, the fastest growing segment according to the report.
In the United States, Battery Resourcers is planning to open a 154,000-square-foot recycling facility in August 2022, which is expected to be among the largest in North America. It will have the capacity to recycle 30,000 metric tons of lithium-ion batteries per year.
With that increase in supply, automotive battery recycling is expected to generate nearly $2.2 billion of revenue by 2030. The report says this is due to the growing electric vehicle industry as well as more government policies for battery recycling are put into place. Additionally, the demand for batteries in countries such as China, India and Singapore will drive the market’s growth.
The industrial battery market, used for items like forklifts and heavy machinery, is expected to hit nearly $5.2 billion.
Europe is expected to be the top region for the market, according to the report. It was valued at $1.5 billion in 2020, and with the presence of electric vehicle battery manufactures such was Volkswagen, Tesla and Renault, the recycling market will expand. Asia-Pacific is expected to follow with a growth to $2.4 billion.