Automotive Metal Recycling Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Metal (Ferrous and Non-Ferrous), By Scrap Type (Old Scrap and New Scrap), By Equipment (Shredders, Shears, Granulating Machines, Briquetting Machines), By Region & Competition, 2021-2031F

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.

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