Battery Manufacturing Scrap Recycling Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Scrap Source (Automotive Batteries, Industrial Batteries, Consumer Electronics Batteries, Others), By Recycling Technology (Hydrometallurgy, Pyrometallurgy, Others), By Application (Automotive, Electronics, Energy and Power, Aerospace and Defense, Construction, Others), By Region and Competition, 2020-2030F

Market Overview

The Global Battery Manufacturing Scrap Recycling Market, valued at USD 2.1 Billion in 2024, is projected to experience robust expansion with a CAGR of 8.30% to reach USD 3.39 Billion by 2030. The Global Battery Manufacturing Scrap Recycling Market refers to the processes of recovering valuable materials from waste generated during battery cell production. Key market drivers include the escalating global demand for batteries, particularly within the electric vehicle industry, alongside stringent legislative mandates promoting circular economy principles. Furthermore, environmental concerns over raw material extraction and landfill waste, coupled with the economic imperative to recover critical metals, fundamentally support market growth.

The sector demonstrates significant material recovery efforts, with approximately 175,000 tons of material, including manufacturing scrap, reclaimed in U. S. intermediate processing facilities in 2023, according to the U. S. Department of Energy. However, a substantial challenge hindering market expansion is the persistent shortage of feedstock materials. This scarcity is attributed to factors such as slower-than-anticipated end-of-life battery volumes and the geographic concentration of new battery cell production, which limits scrap availability in certain recycling markets.

Key Market Drivers

Stringent environmental regulations and ambitious sustainability goals represent a pivotal force propelling the global battery manufacturing scrap recycling market. Governments worldwide are increasingly enacting legislation that mandates higher recycling rates and recycled content requirements for new batteries, fostering a circular economy approach. These frameworks aim to mitigate environmental impact, reduce reliance on virgin raw materials, and address waste disposal concerns. For example, according to Paristokierrätys, July 2023, in their article ‘#BatteryRegulation: The parliament adopted the new Battery Regulation on 14 June 2023—what next? ’, mandatory minimum levels of recycled content for industrial, SLI, and EV batteries were established, initially setting them at 6% for lithium. Such policies compel battery manufacturers to implement efficient scrap collection and recycling processes, integrating recovered materials back into their supply chains to meet compliance targets, thereby driving investment in necessary infrastructure and technology.

Concurrently, economic incentives derived from critical material recovery significantly drive the battery manufacturing scrap recycling market. Valuable metals such as lithium, cobalt, and nickel, essential for high-performance batteries, command substantial market prices, making their reclamation from manufacturing waste financially attractive. Recycling offers a cost-effective alternative to sourcing primary raw materials, which are often subject to price volatility and geopolitical supply chain risks. Investment in recycling infrastructure is stimulated by potential for significant returns from recovered materials. According to the U. S. Department of Energy, March 2024, in its announcement regarding battery recycling funding, $62 million in funding was allocated for 17 projects aimed at improving the economics of battery recycling. This financial impetus encourages manufacturers to optimize scrap utilization. The escalating scale of battery production, fueled by robust demand, further amplifies this economic rationale; for instance, according to ElectroIQ, in 2023, electric vehicle sales increased to 13.7 million units globally. This burgeoning demand necessitates a secure and diversified supply of battery-grade materials, with recycling playing an increasingly vital role.

Download Free Sample Report

Key Market Challenges

A substantial challenge hindering the growth of the Global Battery Manufacturing Scrap Recycling Market is the persistent shortage of feedstock materials. This scarcity directly limits the operational throughput and economic viability of recycling facilities. Without a sufficient and consistent supply of manufacturing scrap, recyclers face underutilization of capacity, impacting their ability to achieve economies of scale and fulfill potential market demand for recycled critical metals.

The primary drivers behind this feedstock scarcity include slower-than-anticipated end-of-life battery volumes entering the recycling stream. Additionally, the geographic concentration of new battery cell production facilities creates localized imbalances, limiting the availability of manufacturing scrap in regions where recycling infrastructure is developing or already established. According to the Global Battery Alliance, global battery manufacturing capacity reached 2.5 terawatt-hours in 2023. Despite this substantial production, the actual available manufacturing scrap for recycling remains constrained, directly impeding the global expansion and efficiency of the scrap recycling market. This discrepancy highlights the severe imbalance between production potential and readily available feedstock, directly hampering the overall growth of the battery manufacturing scrap recycling sector.

Key Market Trends

The global battery manufacturing scrap recycling market is experiencing significant shifts driven by strategic advancements in processing capabilities and upstream product development. Accelerated investment in advanced recycling technologies represents a pivotal trend, moving beyond basic material recovery to sophisticated, efficient processes. This includes the scaling of innovative methods like hydrometallurgy and direct recycling, which are critical for extracting high-purity materials economically. According to Fraunhofer ISI, in August 2024, the total capacity for lithium-ion battery recycling spokes in Europe is projected to nearly double from 160,000 tonnes in 2023 to 300,000 tonnes per year by the end of 2024, indicating substantial capital expenditure in next-generation facilities. Further illustrating this commitment, the U. S. Department of Energy announced $4.82 billion in funding across 39 projects in 2024, aimed at bolstering domestic production of advanced batteries and their essential materials, which inherently includes recycling infrastructure enhancements.

Concurrently, the trend of design for recyclability in battery manufacturing is gaining prominence, focusing on proactive measures to integrate recycling considerations into the initial product blueprint. This involves developing battery architectures that facilitate easier disassembly and material separation at end-of-life, reducing the complexity and cost of recycling processes. A significant catalyst for this trend is the new EU Battery Regulation 2023/1542, enforced in February 2024, which mandates that portable batteries must be easily removable and replaceable by consumers by February 2027, thereby compelling manufacturers to redesign products for enhanced circularity. For instance, Apple is developing electrically induced adhesive release technology and specific stainless steel battery cases for its iPhone 16 series to simplify disassembly and comply with these evolving EU requirements.

Segmental Insights

The Global Battery Manufacturing Scrap Recycling Market recognizes Automotive Batteries as its fastest-growing segment, fundamentally propelled by the escalating worldwide adoption of electric vehicles. This increasing demand for electric vehicles generates a substantial volume of end-of-life batteries, necessitating effective recycling solutions for resource management. Additionally, stringent environmental regulations implemented by various governmental bodies, such as the European Union's Battery Regulation, mandate manufacturers to take responsibility for battery lifecycle management, compelling collection and recycling efforts to prevent hazardous disposal and minimize environmental impact. The critical need to recover valuable materials like lithium and cobalt, alongside continuous advancements in recycling technologies, further accelerates the growth of this segment by fostering a circular economy and reducing reliance on virgin material extraction.

Regional Insights

Asia Pacific stands as the leading region in the Global Battery Manufacturing Scrap Recycling Market, primarily driven by its unparalleled status as the world's largest battery manufacturing hub for electric vehicles and consumer electronics. This extensive production capacity across countries such as China, Japan, and South Korea inherently generates substantial volumes of battery manufacturing scrap. The region's leadership is significantly bolstered by stringent government regulations and the widespread implementation of Extended Producer Responsibility policies, particularly evident in China, which mandate and incentivize efficient battery recycling and sustainable waste management. These robust policy frameworks, combined with substantial investments in advanced recycling infrastructure and innovative technologies for recovering critical raw materials, collectively underscore Asia Pacific's crucial role in fostering a circular economy for battery materials.

Recent Developments

• In September 2025, Australian battery recycler Livium extended and expanded its agreement with South Korean battery manufacturer LG Energy Solution (LGES). This collaboration focuses on processing recalled and end-of-life residential lithium-ion batteries into black mass. The updated deal, which now runs until 2029, includes Australian end-of-life batteries, broadening the scope beyond the previous agreement that was set to conclude in 2027. This partnership is crucial for enhancing the recycling infrastructure for consumer batteries, contributing directly to the Global Battery Manufacturing Scrap Recycling Market by recovering valuable materials.

• In September 2025, Telescope Innovations Corp. achieved a significant breakthrough in battery recycling technology by successfully producing battery-grade lithium carbonate from recycled waste streams. The company utilized its proprietary ReCRFT™ process to isolate and convert lithium from complex, low-value battery waste into high-purity, over 99.9% battery-grade lithium carbonate. This advancement builds upon an initial proof-of-concept from April 2024 and addresses a major challenge in the Global Battery Manufacturing Scrap Recycling Market by efficiently recovering valuable lithium, which constitutes a substantial portion of the metal value in spent batteries.

• In June 2025, LG Energy Solution (LGES) and Toyota Tsusho announced a strategic partnership to establish a battery recycling joint venture in the United States, named Green Metals Battery Innovations. This collaboration aims to create a circular economy for electric vehicle batteries within North America, addressing supply chain challenges by establishing regional recycling infrastructure. The initiative includes plans for a new state-of-the-art recycling facility in North Carolina, which will recover valuable materials from used batteries and production scrap. This joint venture directly impacts the Global Battery Manufacturing Scrap Recycling Market by facilitating the reprocessing and reuse of critical battery components.

• In April 2025, American Battery Technology Company (ABTC) was recognized as the "Recycling Technology Solution 2025" by CleanTech Breakthrough for its internally developed advancements in battery recycling. The company's innovative "de-manufacturing" process challenges conventional high-impact methods by employing selective hydrometallurgical processing to recover critical battery materials. Furthermore, ABTC secured a $144 million grant in 2024 from the U.S. Department of Energy to construct a second commercial-scale lithium-ion battery recycling facility. This expansion will significantly enhance capacity within the Global Battery Manufacturing Scrap Recycling Market, aiming to process an additional 100,000 tonnes annually.

Key Market Players

• Fortum Group
• Guangdong Brunp Recycling Technology Co., Ltd.
• Hydrovolt
• Umicore
• Li-Cycle Corp.
• BASF SE
• Tenova S.p.A.
• Duesenfeld GmbH
• Aqua Metals, Inc
• Green Li-ion Pte Ltd

Report Scope:

In this report, the Global Battery Manufacturing Scrap Recycling Markethas been segmented into the following categories, in addition to the industrytrends which have also been detailed below:

• Global Battery Manufacturing Scrap Recycling Market, By Scrap Source:

o   Automotive Batteries

o   Industrial Batteries

o   Consumer Electronics Batteries

o   Others

• Global Battery Manufacturing Scrap Recycling Market, By Recycling Technology:

o   Hydrometallurgy

o   Pyrometallurgy

o   Others

• Global Battery Manufacturing Scrap Recycling Market, By Application:

o   Automotive

o   Electronics

o   Energy and Power

o   Aerospace and Defense

o   Construction

o   Others

• Global Battery Manufacturing Scrap Recycling Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Battery Manufacturing Scrap Recycling Market.

Available Customizations:

Global Battery Manufacturing Scrap Recycling Market report with the given market data, Tech Sci 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 Battery Manufacturing Scrap 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]