Lithium-Ion Battery Recycling Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Industry (Automotive, Marine, Power, Others), By Technology (Hydrometallurgical Process, Pyrometallurgy Process, Physical/Mechanical Process), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 10.57 Billion
CAGR (2026-2031)	21.59%
Fastest Growing Segment	Automotive
Largest Market	North America
Market Size (2031)	USD 34.16 Billion

Market Overview

The Global Lithium-Ion Battery Recycling Market will grow from USD 10.57 Billion in 2025 to USD 34.16 Billion by 2031 at a 21.59% CAGR. The Global Lithium-Ion Battery Recycling Market involves the recovery and reprocessing of spent energy storage units to extract critical materials such as lithium, cobalt, and nickel for reintroduction into the manufacturing supply chain. This sector is primarily driven by the escalating production of electric vehicles, which drastically increases feedstock availability, and stringent government regulations mandating circular economy practices and specific material recovery targets. These factors collectively pressure the industry to secure stable secondary raw material sources independent of volatile, primary mining markets.

However, market expansion is significantly impeded by the high technical complexity and capital expenditures associated with efficient metallurgical separation and safe collection logistics. The hazardous nature of spent batteries necessitates specialized handling that drives up operational expenses and creates barriers to entry. According to the International Energy Agency, in 2024, global battery recycling capacity was reported to have reached over 300 gigawatt-hours annually, highlighting the substantial infrastructure development currently concentrated in limited regions to address mounting waste volumes.

Key Market Drivers

The surging global adoption of electric vehicles (EVs) and e-mobility solutions acts as the primary catalyst for the Global Lithium-Ion Battery Recycling Market by creating an exponentially growing reservoir of feedstock. As the automotive sector transitions from internal combustion engines to electrification, the volume of battery packs reaching their end-of-life phase is set to surge, necessitating industrial-scale recovery operations to manage this influx of hazardous yet valuable waste. According to the International Energy Agency, in April 2024, in the 'Global EV Outlook 2024', global electric car sales neared 14 million in 2023, a trajectory that ensures a sustained, long-term supply of spent units for the recycling sector.

Implementation of stringent government regulations and recycling mandates further accelerates market expansion by legally enforcing material recovery to reduce reliance on imported minerals. Governments are increasingly establishing circular economy frameworks that dictate minimum recycled content in new batteries, thereby guaranteeing demand for secondary materials. According to the European Council, in March 2024, in the 'Critical Raw Materials Act', the EU established a benchmark requiring that at least 25% of the Union's annual consumption of strategic raw materials be derived from domestic recycling by 2030. To support such compliance and infrastructure, substantial capital is being deployed; for instance, according to the U.S. Department of Energy, in September 2024, the government announced over $3 billion in funding for battery material processing and recycling projects to strengthen domestic supply chains.

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Key Market Challenges

The substantial technical complexity and high capital expenditures associated with metallurgical separation and safe logistics constitute a formidable barrier to the growth of the Global Lithium-Ion Battery Recycling Market. This challenge directly hampers market expansion by elevating the break-even point for recycling operations, rendering them financially precarious without a guaranteed, high-volume flow of feedstock. The rigorous safety protocols required to handle hazardous battery components inflate operational expenses (OPEX), thereby deterring potential entrants and limiting the scalability of existing infrastructure. Consequently, the industry struggles to establish the dense processing networks necessary to make secondary material recovery economically competitive with primary mining.

These financial and technical constraints result in significant inefficiencies in material recovery rates, particularly for minerals that are more difficult to separate. The high cost of advanced processing technologies often outweighs the market value of the recovered materials, causing valuable resources to be lost rather than reintroduced into the supply chain. According to the International Energy Agency, in 2023, the recovery rate of lithium from available battery feedstock was approximately 20 percent, illustrating how these ingrained technical difficulties and cost barriers severely restrict the industry's ability to fully capture and utilize the available waste stream.

Key Market Trends

Establishment of Closed-Loop Supply Chains through OEM-Recycler Partnerships. To mitigate volatility and secure critical minerals, the industry is shifting toward integrated circular ecosystems where manufacturers form direct alliances with recyclers. These collaborations allow automotive companies to retain ownership of recovered materials, ensuring compliant feedstock for new cell production while bypassing mining bottlenecks. This trend is exemplified by major capital infusions; for instance, according to the Rochester Beacon, March 2024, in the 'Li-Cycle inks agreement with Glencore for $75 million' article, Li-Cycle Holdings Corp. secured a $75 million investment from Glencore to develop its recycling capabilities, validating the move toward formalized material recovery partnerships.

Shift toward Pre-Consumer Manufacturing Scrap as Near-Term Primary Feedstock. While the market anticipates end-of-life battery surges, current operations depend heavily on pre-consumer manufacturing scrap due to the extended durability of electric vehicles. This lag in post-consumer volume has created a feedstock deficit for expanding infrastructure, forcing facilities to compete for gigafactory waste to maintain utilization. Highlighting this mismatch, according to Fastmarkets, July 2024, in the 'Expansions in US Li-battery recycling capacity raise concerns over feedstock' article, U.S. shredding capacity was projected to reach nearly 230,000 tonnes in 2024, significantly exceeding the estimated 90,000 tonnes of available scrap and end-of-life supply.

Segmental Insights

The automotive segment is projected to distinguish itself as the fastest-growing category within the global lithium-ion battery recycling market. This rapid expansion is fundamentally driven by the extensive worldwide adoption of electric vehicles, which necessitates the management of increasing volumes of end-of-life battery packs. Furthermore, rigorous environmental directives from organizations such as the European Commission compel manufacturers to adhere to strict material recovery and sustainable disposal standards. Consequently, the critical requirement to reclaim essential minerals for continued vehicle production and minimize waste effectively fuels the accelerated development of this sector.

Regional Insights

North America dominates the global lithium-ion battery recycling market, driven by stringent environmental policies and robust federal investments. The United States Department of Energy actively funds initiatives to secure domestic critical mineral supply chains, fostering rapid infrastructure development. Furthermore, the Environmental Protection Agency enforces rigorous disposal standards that mandate sustainable end-of-life battery management. This strong regulatory framework, coupled with an established industrial base and rising electric vehicle adoption, ensures the region remains the primary hub for comprehensive material recovery networks and sustainable battery circularity.

Recent Developments

• In October 2024, Lithion Technologies announced a multi-year partnership with Hyundai Auto Canada to serve as the official partner for the collection and recycling of electric vehicle batteries. This agreement integrates Lithion into the automaker's logistics network, covering over 250 dealerships and distributors across the country to manage end-of-life lithium-ion batteries and modules. The collected batteries are transported to Lithion’s commercial plant in Quebec for safe dismantling and mineral extraction. This collaboration underscores the industry's shift towards sustainable lifecycle management, ensuring that critical minerals are recovered with high efficiency and reintroduced into the manufacturing supply chain.
• In April 2024, BASF successfully commenced operations at its prototype metal refinery for battery recycling in Schwarzheide, Germany. This advanced facility was constructed to develop operational procedures and optimize innovative technologies for processing end-of-life lithium-ion batteries and battery production scrap. The plant focuses on the efficient recovery of valuable metals, including lithium, nickel, cobalt, manganese, and copper, to facilitate their reuse in the production of new cathode active materials. This development marks a pivotal milestone in the company’s broader strategy to establish a fully co-located, closed-loop battery materials center in Europe, reducing reliance on mined raw resources.
• In February 2024, Fortum Battery Recycling and Hydrovolt established a strategic cooperation to advance the circular economy for batteries within the Nordic region. Under this agreement, Hydrovolt committed to mechanically recycling electric vehicle batteries at its industrial plant in Norway and delivering the resulting black mass to Fortum’s hydrometallurgical facility in Harjavalta, Finland. The Finnish plant is responsible for the subsequent processing of this material to recover critical metals such as lithium, nickel, and cobalt. This cross-border collaboration leverages the specialized mechanical and hydrometallurgical capabilities of both companies to ensure high recovery rates and return valuable materials to the battery value chain.
• In January 2024, Ecobat confirmed the commissioning of its first lithium-ion battery recycling facility in the United States, located in Casa Grande, Arizona. This new plant represents a significant expansion of the company's global infrastructure, complementing its existing lithium-ion processing operations in Germany and the United Kingdom. The facility is designed to sort, shred, and separate battery materials to produce black mass, which contains valuable metals essential for new battery production. With an initial capacity to process approximately 10,000 tonnes of recycled material annually, the site aims to bolster the North American supply chain for electric vehicle components.

Key Market Players

• Green Technology Solutions, Inc
• Li-Cycle Corporation
• Glencore PLC
• Recupyl Sas
• Umicore SA
• American Manganese Inc
• Metal Conversion Technologies LLC
• Retriev Technologies Inc
• Raw Materials Company
• TES-AMM Pte Ltd.

By Industry	By Technology	By Region
Automotive Marine Power Others	Hydrometallurgical Process Pyrometallurgy Process Physical/Mechanical Process	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Lithium-Ion Battery Recycling Market, By Industry:

• Automotive
• Marine
• Power
• Others

• Lithium-Ion Battery Recycling Market, By Technology:

• Hydrometallurgical Process
• Pyrometallurgy Process
• Physical/Mechanical Process

• Lithium-Ion Battery 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