The electric vehicle battery recycling market is projected to grow from $8.2 billion in 2022 to $20.07 billion by 2028, largely due to growing consumer demand for EVs and technological innovations within the industry, according to a report by ResearchandMarkets.com
In addition to these key findings, the report explored trends within the EV battery market, including the rising prevalence of EV purchases and the volatility of raw materials needed for battery production.
Highly Competitive, Dynamic Market Drives Innovation
The report explains the EV battery market as having a low level of market concentration and strong competition among players. This landscape makes for a highly adaptive market with rapid technological innovations.
Lithium-ion batteries have been widely adopted as a leading technology in EV development. The battery type currently dominates the market, especially as demand for enduring battery life increases, and demand for the lithium-ion battery recycling market has grown accordingly. Many companies have also recognized the potential to lower emissions and costs through lithium-ion battery recycling, especially as critical metals used in the batteries are limited.
According to the report, North America’s technological advancements and numerous well-established industry players make it the leading region in the global market, valued at $1.65 billion as of 2022. The report also named ACCUREC-Recycling, American Manganese, Battery Solutions, and G & P Batteries as major players with a significant global presence in the EV recycling sector.
Rising Gas Prices Contribute to Growth, Obstacles in Raw Materials Pricing
The report also attributes rising gas prices to increased adoption of EVs, which in turn drives battery recycling market growth.
Further, some countries have suggested phasing out fossil fuel subsidies, which would further drive up gas costs. Of vehicle types, the commercial vehicles segment is expected to account for the largest global industry segment for EV battery recycling over passenger cars. The report attributes this to government initiatives for e-mobility and increased investment in developing advanced commercial EVs.
Over half the cost of production in the EV battery recycling market comes from sourcing raw materials such as steel, plastic, and rubber. The report identifies the instability of raw materials prices as a major threat to vendor margins.
Of the processes used to recycle EV batteries, the hydrometallurgical process was found to be the most widely used. The process is found to offer a highly scalable, low-cost option with minimal environmental impact.