United States Lithium-ion Battery Recycling Market 2025 | Growth Drivers, Key Players & Investment Opportunities

Market Size and Growth

The Global Lithium-Ion Battery Recycling Market reached USD 6.1 billion in 2022 and is expected to reach USD 20.4 billion by 2031, growing with a CAGR of 22.3% during the forecast period 2024-2031.

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Key Development:

United States: Recent Lithium‐Ion Battery Recycling Developments

✅ In November 2025, Redwood Materials kicked off operations at a new $3.5 billion battery recycling and materials‐production facility a major boost to U.S. domestic supply of critical battery materials such as lithium, nickel, cobalt and copper.

✅ In November 2025, American Battery Technology Company (ABTC) received formal approval from the U.S. Environmental Protection Agency (EPA) to receive and safely recycle lithium‐ion batteries classified as CERCLA‐waste, including damaged batteries from large‐scale energy storage systems expanding capacity for safe handling of hazardous battery waste.

✅ In November 2025, Clarios announced acceleration of plans to restart idled infrastructure at its South Carolina facility and to build a new state‐of‐the‐art battery recycling and critical mineral processing plant signalling fresh investment to expand U.S. recycling capacity and critical‐material processing.

✅ In August 2025, Princeton NuEnergy (PNE) opened a commercial‐scale "black mass" recycling and battery‐grade cathode material production facility in Chester, South Carolina marking a step forward in scaled domestic recycling infrastructure for lithium‐ion batteries.

✅ In August 2025, Glencore completed the acquisition of Li‐Cycle Holdings Corp. taking over Li‐Cycle's recycling assets, including its "spoke" facilities in the U.S. and abroad, plus its intellectual‐property portfolio.

Japan: Recent Lithium‐Ion Battery Recycling Developments

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✅ In October 2025, the Japanese government approved a new regulation (effective fiscal year 2026) mandating manufacturers and importers of mobile batteries, power banks, and similar devices to collect and recycle lithium‐ion batteries marking a regulatory push toward formalising battery recycling and e‐waste management across consumer electronics.

✅ In June 2025, industry stakeholders in Japan emphasised the need for legal and regulated methods for repurposing end‐of‐life lithium‐ion batteries especially as higher energy‐density batteries evolve highlighting recycling as a necessary response to raw‐material scarcity and environmental concerns.

✅ In March 2025, Panasonic Energy announced a closed‐loop recycling collaboration with Sumitomo Metal Mining: nickel from end‐of‐life battery scr@p will be recovered and reused as cathode raw material, representing Japan's first "battery‐to‐battery" recycling initiative for automotive lithium‐ion batteries.

✅ In March 2025, Sumitomo Metal Mining clarified plans that the closed‐loop initiative will initially focus on nickel recovery but aims to expand after 2026 to include other cathode materials such as lithium and cobalt, laying the groundwork for comprehensive circular‐economy battery recycling in Japan.

Key Players:

=> Glencore, Raw Materials Company, Umicore, Neometals Ltd, American Manganese Inc., Retriev Technologies, Li-Cycle Corp, SNAM (A subsidiary of Floridienne Group), TES and Duesenfeld GmbH.

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Key Segments:

By Battery Chemistry

Lithium-Manganese Oxide (LMO) leads with 20% share, driven by its thermal stability, cost-effectiveness, and use in automotive and industrial applications. Lithium-Nickel Manganese Cobalt (NMC) accounts for 30%, supported by high energy density and growing adoption in electric vehicles (EVs) and energy storage systems. Lithium-Iron Phosphate (LFP) holds 25%, fueled by safety, long cycle life, and rising usage in EVs, buses, and renewable energy storage. Lithium-Titanate Oxide (LTO) represents 10%, reflecting niche applications in fast-charging, aerospace, and military sectors. Lithium-Nickel Cobalt Aluminum Oxide (NCA) accounts for 15%, driven by premium EVs and high-performance industrial energy storage applications.

By Technology

Hydrometallurgy processes dominate with 35% share, supported by sustainable recovery, high efficiency, and growing adoption in lithium recycling. Pyrometallurgy accounts for 30%, fueled by traditional lithium processing in battery production and high-temperature smelting. Mechanical processes hold 20%, reflecting shredding, sorting, and pre-treatment applications in battery recycling and materials recovery. Other technologies make up 15%, including hybrid and emerging processing techniques focused on cost reduction and sustainability.

By End-User

Automotive leads with 45% share, driven by electric vehicle production, battery packs for hybrid vehicles, and demand for high-performance chemistries. Industrial applications account for 20%, supported by material handling, robotics, and stationary energy storage systems. Power sector usage holds 15%, fueled by renewable energy integration and grid storage requirements. Marine applications represent 10%, including electric boats and naval applications. Other end-users make up 10%, covering aerospace, consumer electronics, and specialty applications.

By Region

Asia Pacific - 40% Share
Asia Pacific leads with 40%, driven by dominant EV production, lithium battery manufacturing, and energy storage adoption in China, Japan, South Korea, and India.

Europe - 25% Share
Europe holds 25%, supported by EV manufacturing, renewable energy storage deployment, and battery recycling initiatives in Germany, France, U.K., Italy, Spain, and neighboring countries.

North America - 20% Share
North America accounts for 20%, fueled by EV adoption, energy storage solutions, and industrial applications in the U.S. and Canada.

Latin America - 7% Share
Latin America holds 7%, driven by lithium resource availability, mining operations, and growing EV and industrial battery markets in Brazil, Argentina, and surrounding countries.

Middle East & Africa - 8% Share
The Middle East & Africa represent 8%, supported by industrial, energy storage, and emerging EV markets in GCC countries, South Africa, and other developing regions.

FAQ

What is the current size of the Lithium-Ion Battery Recycling Market?

A: In 2022, the Lithium-Ion Battery Recycling Market was valued at USD 6.1 billion, reflecting its strong industry presence.

Q2: How large is the Lithium-Ion Battery Recycling Market expected to be by 2031?

A: By 2031, industry forecasts suggest the Lithium-Ion Battery Recycling Market will grow to around USD 20.4 billion demonstrating significant expansion.

Q3: What is the growth rate of the Lithium-Ion Battery Recycling Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 22.3% during the forecast period from 2024 to 2031.

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