The lithium-ion battery recycling market will advance at a growth rate of 20.45% during 2022–2030, to reach USD 21,184 million by 2030, as stated by a market research institution, P&S Intelligence.

The key factors driving the industry are the inadequate supply of lithium metal and the expanding acceptance of EVs globally, as a result of the subsidies offered by diverse nations. Fundamentally, the decreasing cost of EVs as a result of road tax relaxations and subsidies of the government is driving their acceptance.

The LCO battery category had the largest share in 2022, and it will continue dominating in the years to come. The discharge voltage of LCO batteries and high energy density, making them more appropriate for power tools, mobiles, tablets, and laptops and hybrid/full EVs, is the main driver in this category.

The automotive category will also grow at the highest CAGR, of 20.9%, in the years to come. This can mainly be accredited to the booming uptake of e-motorcycles, buses, scooters, trucks, and cars globally.

Furthermore, the limited obtainability of lithium drives the reprocessing of these batteries. With the growing requirement for e-vehicles, used Li-ion batteries will see an expansion in requirement in the automotive industry. The decreasing price of these power storing devices, accompanied by the increasing efficiency of EVs, is also a growth factor.

The lithium-ion battery recycling market of North America will grow significantly in the years to come. This can majorly be credited to the U.S. being one of the largest markets globally for these energy storage systems.

 The growth in EV use, with the incentives of the government and other policies, will drive this domain in the years to come. Furthermore, the increasing investment by major players in the EV industry, accompanied by the setup of the charging infra, will improve recycling demand.

APAC will grow at a significant rate, of 20.8% in the years to come, because of the increasing acceptance of EVs. Essentially, the growing consciousness among customers of the environmental advantages of EVs in the emerging nations of the region will boost the expansion of the industry. To cope with the need for Li-ion batteries in vehicles, manufacturers are concentrating on the recycling of the used ones.

The increasing use of lithium-ion batteries in numerous applications has brought about in the increasing concerns pertaining to the limited obtainability of the base metal. The mining of This metal has a negative impact on the environment, including water pollution as a result of chemical leakage. As a result of this fact, Li-ion battery recycling has picked up of late.

Furthermore, since no material presently has characteristics similar to lithium, manufacturers are focusing on the reuse of lithium batteries, for providing an acceptable metal for batteries for diverse uses.

Because of the limited availability of lithium, the demand for lithium-ion battery recycling will continue to grow in the years to come.

Source: P&S Intelligence