Automotive Metal Recycling Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 63.54 Billion
CAGR (2026-2031)	7.87%
Fastest Growing Segment	Shredders
Largest Market	Europe
Market Size (2031)	USD 100.11 Billion

Market Overview

The Global Automotive Metal Recycling Market will grow from USD 63.54 Billion in 2025 to USD 100.11 Billion by 2031 at a 7.87% CAGR. The Global Automotive Metal Recycling Market encompasses the systematic recovery and processing of ferrous and non-ferrous metals from end-of-life vehicles to produce secondary raw materials for industrial reuse. The primary drivers supporting market growth include stringent government regulations mandating higher material recovery rates and the economic imperative to adopt circular economy models that reduce dependence on virgin ore. According to the Bureau of International Recycling, in 2024, the verified usage of recycled steel across key global regions totaled approximately 460.6 million tonnes. This significant volume underscores the critical role of scrap recovery in stabilizing supply chains and minimizing the environmental footprint of heavy manufacturing.

However, the industry faces a significant challenge regarding the evolving material complexity of modern automobiles. The increasing prevalence of electric vehicles introduces safety risks associated with dismantling high-voltage lithium-ion batteries, while the integration of lightweight carbon fiber composites complicates traditional separation processes, potentially creating bottlenecks in existing recycling infrastructure.

Key Market Drivers

The surging demand for critical mineral recovery from electric vehicle batteries is fundamentally reshaping the market structure, compelling recyclers to transition from traditional shredding to advanced hydrometallurgical separation techniques. As automakers strive to secure domestic supply chains for lithium, cobalt, and nickel, the recycling sector is scaling rapidly to process the growing influx of spent battery packs and manufacturing scrap. This strategic capacity expansion is critical for mitigating geopolitical supply risks and ensuring compliance with regional sustainability mandates. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global battery recycling capacity reached over 300 gigawatt-hours in 2023, positioning the industry to reclaim substantial volumes of high-value battery metals for reintegration into the supply chain.

Simultaneously, the rising utilization of recycled aluminum for automotive lightweighting initiatives is driving significant demand for high-grade secondary alloys. OEMs are increasingly prioritizing closed-loop recycling systems to lower vehicle weight and manufacturing emissions without compromising structural integrity, creating a robust market for sorted aluminum scrap. According to Novelis Inc., October 2024, in the 'Fiscal Year 2024 Sustainability Report', the company achieved an average of 63% recycled content across its aluminum rolled product portfolio, highlighting the industrial momentum behind this transition. This focus on material circularity is further bolstered by the deepening pool of available feedstock from aging fleets. According to the European Automobile Manufacturers’ Association (ACEA), in September 2024, the average age of passenger cars in the European Union reached 12.3 years, ensuring a steady, long-term supply of ferrous and non-ferrous scrap for the recycling stream.

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Key Market Challenges

The evolving material complexity of modern automobiles presents a formidable barrier to the expansion of the Global Automotive Metal Recycling Market. Traditional recycling infrastructure utilizes shredding and magnetic separation technologies designed primarily for ferrous metals; however, the integration of carbon fiber reinforced polymers and other lightweight composites in newer vehicle designs fundamentally disrupts these established workflows. These advanced materials are often bonded to metals in ways that make clean separation difficult and costly, resulting in contaminated scrap streams with reduced market value. Furthermore, the safety protocols required for dismantling high-voltage lithium-ion batteries in electric vehicles force facilities to slow down processing speeds, creating operational bottlenecks that directly reduce overall throughput and profitability.

This inefficiency threatens the industry's capacity to manage the sheer volume of scrap material required to sustain market growth. The scale of this operational necessity is highlighted by recent industry statistics. According to the Recycled Materials Association, in 2024, the recycling sector processed nearly 70 million tons of iron and steel in the United States alone. As vehicle complexity increases, the ability to maintain such high processing volumes is compromised, leading to higher operational costs and a potential contraction in the supply of high-quality secondary raw materials.

Key Market Trends

The integration of AI-powered automated sorting systems is revolutionizing the recovery of non-ferrous metals from automotive shredder residue. As vehicles utilize more complex material mixes, traditional magnetic separation often fails to distinguish between specific aluminum alloys or copper wiring. Advanced optical sorters equipped with computer vision are now being deployed to identify these materials with precision, enhancing the purity and market value of the recovered scrap. This technological advancement is driving significant capital influx into the sector to modernize processing capabilities. According to Highways Today, December 2024, in the article 'AMP Robotics Transforming Recycling and Waste Management with AI', AMP Robotics Corp. raised $91 million in Series D funding to accelerate the deployment of its AI-powered sortation infrastructure, enabling facilities to manage complex material streams more efficiently.

Simultaneously, there is a distinct trend toward the development of high-purity scrap processing to support green steel applications. As steelmakers transition from blast furnaces to Electric Arc Furnaces for decarbonization, they require "prime" scrap with minimal impurities to produce high-integrity automotive steels. This demand is compelling recyclers to implement stricter quality control measures and advanced cleaning technologies to ensure furnace-ready feedstock. This industrial pivot is exemplified by major strategic investments in low-carbon production capacities. According to SSAB AB, December 2024, in the press release 'SSAB receives environmental permit to transform steel plant in Luleå', the company obtained approval for a new mini-mill that will utilize high-quality recycled scrap to eliminate approximately 2.8 million tonnes of annual carbon dioxide emissions.

Segmental Insights

The Shredders segment is the fastest-growing category within the Global Automotive Metal Recycling Market due to the rising need to process discarded automobiles efficiently. This expansion is largely driven by stringent material recovery mandates from regulatory bodies like the European Commission, which require recyclers to minimize landfill usage. Shredders allow operators to reduce vehicle bodies into smaller fragments rapidly, facilitating the effective separation of steel and aluminum from non-metal components. Consequently, recycling facilities are increasingly investing in this machinery to maintain compliance with environmental laws while managing the growing global supply of scrap metal.

Regional Insights

Europe maintains a dominant position in the global automotive metal recycling market, driven primarily by stringent environmental legislation enforced by the European Union. The implementation of the End-of-Life Vehicles (ELV) Directive mandates rigorous targets for material recovery and reuse, compelling manufacturers to integrate recycled materials into production cycles to achieve sustainability goals. This regulatory pressure has fostered an established infrastructure for collecting and processing scrap metal, specifically steel and aluminum. Consequently, the region effectively minimizes waste while securing a consistent supply of secondary raw materials, thereby solidifying its leadership in the global sector.

Recent Developments

In June 2025, LG Energy Solution and Toyota Tsusho Corporation established a joint venture named Green Metals Battery Innovations to focus on the recycling of automotive battery metals. The partners announced plans to construct a pre-processing plant in North Carolina aimed at extracting black mass containing valuable raw metals such as nickel, cobalt, and lithium from production scrap and end-of-life batteries. This initiative underscored the companies' commitment to creating a circular economy within the battery supply chain. The facility was projected to have an annual processing capacity sufficient to handle material equivalent to over 40,000 automotive batteries.
In March 2025, Radius Recycling entered into a definitive merger agreement to be acquired by a U.S. subsidiary of Toyota Tsusho Corporation for $30.00 per share. This strategic collaboration aimed to leverage the acquirer's global reach and established relationships with automotive original equipment manufacturers to expand the company's metal recycling platform. The transaction was designed to accelerate the recycler's growth strategies and strengthen its position in the supply chain for recycled ferrous and nonferrous metals. The deal highlighted the increasing importance of closed-loop solutions and the recovery of valuable materials in the global automotive sector.
In November 2024, Constellium announced the industrial-scale implementation of Laser-Induced Breakdown Spectroscopy (LIBS) technology to enhance the sorting of automotive aluminum scrap. Developed in collaboration with a German recycling specialist and a premium European automaker, this breakthrough allowed for the precise separation of specific alloy families from mixed scrap streams. The technology enabled the company to recover high-quality aluminum for reuse in new automotive components, significantly reducing the need for downcycling. This advancement represented a critical step toward achieving a closed-loop recycling system for automotive aluminum sheet and reducing carbon emissions.
In October 2024, Renault Group and SUEZ deepened their collaboration by finalizing an agreement in which the recycling leader acquired a 20% stake in The Future Is NEUTRAL. This strategic partnership focused on accelerating the circular economy across the entire automotive value chain, including the recycling of metals from end-of-life vehicles. The collaboration involved a joint investment of €140 million to expand operations in closed-loop car-to-car recycling and resource recovery. The initiative aimed to provide comprehensive recycling solutions to the wider automotive industry, reducing reliance on virgin raw materials and enhancing the sustainability of vehicle manufacturing.

Key Market Players

ArcelorMittal S.A.
Nucor Corporation
Commercial Metals Company
SIMS Metal Management Ltd.
Aurubis AG
European Metal Recycling Ltd.
Tata Steel Limited
Dowa Holdings Co., Ltd.
Steel Dynamics, Inc.
Schnitzer Steel Industries, Inc.

By Metal	By Scrap Type	By Equipment	By Region
Ferrous and Non-Ferrous	Old Scrap and New Scrap	Shredders Shears Granulating Machines Briquetting Machines	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Metal Recycling Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Automotive Metal Recycling Market, By Metal:

Ferrous and Non-Ferrous

Automotive Metal Recycling Market, By Scrap Type:

Old Scrap and New Scrap

Automotive Metal Recycling Market, By Equipment:

Shredders
Shears
Granulating Machines
Briquetting Machines

Automotive Metal Recycling Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Metal Recycling Market.

Available Customizations:

Global Automotive Metal Recycling Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Automotive Metal Recycling Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Automotive Metal Recycling Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Metal (Ferrous and Non-Ferrous)

5.2.2. By Scrap Type (Old Scrap and New Scrap)

5.2.3. By Equipment (Shredders, Shears, Granulating Machines, Briquetting Machines)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Automotive Metal Recycling Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Metal

6.2.2. By Scrap Type

6.2.3. By Equipment

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Automotive Metal Recycling Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Metal

6.3.1.2.2. By Scrap Type

6.3.1.2.3. By Equipment

6.3.2. Canada Automotive Metal Recycling Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Metal

6.3.2.2.2. By Scrap Type

6.3.2.2.3. By Equipment

6.3.3. Mexico Automotive Metal Recycling Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Metal

6.3.3.2.2. By Scrap Type

6.3.3.2.3. By Equipment

7. Europe Automotive Metal Recycling Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Metal

7.2.2. By Scrap Type

7.2.3. By Equipment

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Automotive Metal Recycling Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Metal

7.3.1.2.2. By Scrap Type

7.3.1.2.3. By Equipment

7.3.2. France Automotive Metal Recycling Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Metal

7.3.2.2.2. By Scrap Type

7.3.2.2.3. By Equipment

7.3.3. United Kingdom Automotive Metal Recycling Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Metal

7.3.3.2.2. By Scrap Type

7.3.3.2.3. By Equipment

7.3.4. Italy Automotive Metal Recycling Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Metal

7.3.4.2.2. By Scrap Type

7.3.4.2.3. By Equipment

7.3.5. Spain Automotive Metal Recycling Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Metal

7.3.5.2.2. By Scrap Type

7.3.5.2.3. By Equipment

8. Asia Pacific Automotive Metal Recycling Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Metal

8.2.2. By Scrap Type

8.2.3. By Equipment

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Automotive Metal Recycling Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Metal

8.3.1.2.2. By Scrap Type

8.3.1.2.3. By Equipment

8.3.2. India Automotive Metal Recycling Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Metal

8.3.2.2.2. By Scrap Type

8.3.2.2.3. By Equipment

8.3.3. Japan Automotive Metal Recycling Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Metal

8.3.3.2.2. By Scrap Type

8.3.3.2.3. By Equipment

8.3.4. South Korea Automotive Metal Recycling Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Metal

8.3.4.2.2. By Scrap Type

8.3.4.2.3. By Equipment

8.3.5. Australia Automotive Metal Recycling Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Metal

8.3.5.2.2. By Scrap Type

8.3.5.2.3. By Equipment

9. Middle East & Africa Automotive Metal Recycling Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Metal

9.2.2. By Scrap Type

9.2.3. By Equipment

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Automotive Metal Recycling Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Metal

9.3.1.2.2. By Scrap Type

9.3.1.2.3. By Equipment

9.3.2. UAE Automotive Metal Recycling Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Metal

9.3.2.2.2. By Scrap Type

9.3.2.2.3. By Equipment

9.3.3. South Africa Automotive Metal Recycling Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Metal

9.3.3.2.2. By Scrap Type

9.3.3.2.3. By Equipment

10. South America Automotive Metal Recycling Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Metal

10.2.2. By Scrap Type

10.2.3. By Equipment

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Automotive Metal Recycling Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Metal

10.3.1.2.2. By Scrap Type

10.3.1.2.3. By Equipment

10.3.2. Colombia Automotive Metal Recycling Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Metal

10.3.2.2.2. By Scrap Type

10.3.2.2.3. By Equipment

10.3.3. Argentina Automotive Metal Recycling Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Metal

10.3.3.2.2. By Scrap Type

10.3.3.2.3. By Equipment

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Automotive Metal Recycling Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. ArcelorMittal S.A.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Nucor Corporation

15.3. Commercial Metals Company

15.4. SIMS Metal Management Ltd.

15.5. Aurubis AG

15.6. European Metal Recycling Ltd.

15.7. Tata Steel Limited

15.8. Dowa Holdings Co., Ltd.

15.9. Steel Dynamics, Inc.

15.10. Schnitzer Steel Industries, Inc.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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