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U.S. Battery Recycling Market to Reach USD 25.30 Billion by 2030, Driven by EV Growth and Sustainability Goals

10-27-2025 06:44 AM CET | Energy & Environment

Press release from: DataM Intelligence

U.S. Battery Recycling Market

U.S. Battery Recycling Market

The U.S. battery recycling market is witnessing a transformative surge, propelled by rising environmental awareness, electric vehicle (EV) adoption, and the growing need for sustainable waste management solutions. According to DataM Intelligence, the U.S. battery recycling market size was valued at approximately USD 4.09 billion in 2024 and is projected to reach USD 25.30 billion by 2030, growing at a CAGR of 35.8% between 2025 and 2030. Stringent environmental regulations, advancements in lithium-based chemistries, and circular economy initiatives are fueling this rapid expansion.

The transportation segment emerged as the largest application sector in 2024, holding an 87.54% market share, followed by the lead-acid battery segment, which accounted for 73.42% of the total chemistry-based share. North America continues to lead the market due to robust recycling infrastructure, rising EV penetration, and supportive government policies promoting sustainable energy storage solutions.

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Key Highlights from the Report

➤ The U.S. battery recycling market is expected to register a strong CAGR of 35.8% during 2025-2030.
➤ Lead-acid batteries accounted for over 73% of the U.S. market share in 2024.
➤ The transportation segment dominated with an 87.54% market share in 2024.
➤ EV adoption and circular economy practices are key growth accelerators.
➤ Expanding recycling capacity for lithium-ion batteries is boosting domestic raw material recovery.
➤ Growing demand for industrial automation and IoT-powered systems drives recycling innovation.

Market Segmentation

By chemistry, lead-acid batteries dominate the market due to their recyclability, cost-effectiveness, and well-established collection networks. They are extensively used in automotive, backup power, and industrial applications, where efficient material recovery supports cost and environmental goals.

By application, the transportation sector leads in revenue contribution. Rising electric vehicle penetration, increased demand for hybrid vehicles, and regulatory focus on end-of-life battery management have significantly expanded recycling requirements. The mature collection infrastructure and manufacturer-led take-back programs further strengthen this segment.

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Regional Insights

The U.S. remains the powerhouse of battery recycling innovation. Robust policies on electronic waste management, extended producer responsibility (EPR) programs, and increasing investment in domestic recycling infrastructure underpin its market leadership. The presence of key recycling companies such as Redwood Materials, Li-Cycle Corp., and Call2Recycle has accelerated capacity expansion.

Additional growth is supported by defense and industrial sectors, where lithium thionyl chloride (Li‐SOCl2) batteries play a crucial role in remote monitoring, telecommunication, and automation applications. These industries' transition toward energy-efficient and low-maintenance systems continues to open new recycling opportunities.

Market Dynamics

Market Drivers:

Rising deployment of electric vehicles, growing emphasis on sustainability, and strict waste handling regulations are driving widespread adoption of battery recycling. The demand for long-lasting and cost-efficient energy storage further supports recycling investments across industrial and defense sectors.

Market Restraints:

The non-rechargeable nature of Li‐SOCl2 batteries limits broader use in cycling applications. In addition, complex recycling processes, hazardous waste management, and high costs associated with lithium recovery remain significant barriers.

Market Opportunities:

Technological upgrades in bobbin and spiral cell recycling, advancements in automated disassembly, and increased funding for clean-tech manufacturing create major opportunities for domestic suppliers. Expansion of EV manufacturing and green infrastructure projects will further enhance market prospects.

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Reasons to Buy the Report

✔ Comprehensive insights into U.S. battery recycling market trends and growth projections.
✔ Covers detailed analysis of lithium-ion and lead-acid recycling value chains.
✔ Provides strategic evaluation of key players across all major U.S. regions.
✔ Delivers actionable forecasts backed by DataM Intelligence's market research.
✔ Helps stakeholders identify emerging investment opportunities through 2030.

Frequently Asked Questions (FAQs)

◆ How big is the U.S. battery recycling market in 2025?
◆ Who are the key players operating in the U.S. battery recycling market?
◆ What is the projected growth rate of the battery recycling industry through 2030?
◆ Which region is expected to dominate the U.S. battery recycling sector?
◆ What technological trends are driving innovation in lithium-based recycling?

Company Insights

Call2Recycle, Inc.

Retriev Technologies

Battery Solutions LLC

Redwood Materials, Inc.

Li-Cycle Corp.

Exide Technologies

Johnson Controls International plc

TES-AMM North America

Umicore

Gopher Resource, LLC

Recent Developments

- In March 2025, Li-Cycle Corp. expanded its lithium-ion battery recycling facility in Tuscaloosa, Alabama, to enhance processing capacity for spent automotive and industrial batteries. This move is expected to boost the availability of recovered lithium, cobalt, and nickel for domestic manufacturers and strengthen circular economy practices.

- Ongoing collaborations across the EV and energy storage industries continue to increase material recovery efficiency and lower recycling costs nationwide.

Conclusion

The U.S. battery recycling market is rapidly evolving to meet sustainability imperatives and supply chain resilience goals. With strong policy support, technological advancements, and a shift toward a circular economy, recycling will play a key role in shaping a cleaner energy future. The rise of EVs, industrial IoT systems, and renewable infrastructure ensures that the U.S. remains at the forefront of the global battery recycling revolution.

Contact Us

Mr. Sai Kiran
DataM Intelligence 4market Research LLP Ground floor
DSL Abacus IT Park, Industrial Development Area
Uppal, Hyderabad, Telangana 500039
USA: +1 877-441-4866
Email: Sai.k@datamintelligence.com
Visit Our Website: https://www.datamintelligence.com

About Us

DataM Intelligence 4Market Research is a comprehensive market intelligence platform offering syndicated and customized reports along with expert consulting across multiple industries, including chemicals, healthcare, agriculture, food & beverages, and more. With extensive experience and a strategy-focused approach, DataM provides businesses and individuals with reliable market insights, statistical forecasts, and personalized research solutions to help them make informed decisions and successfully bring innovations to market.

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