Electric Vehicle (EV) Battery Recycling Market to Reach USD 20.33 Billion by 2032 | CAGR 43.67% | Lithium-Ion Dominates 70% | Key Players: Li-Cycle, GEM Co., Ltd., Redwood Materials

Electric Vehicle Battery Recycling Market Overview

The global electric vehicle (EV) battery recycling market reached US$ 1.12 billion in 2024 and is projected to grow to US$ 20.33 billion by 2032, representing a CAGR of 43.67% during the forecast period 2025-2032. The market is experiencing rapid expansion due to the accelerating adoption of electric vehicles and increasing environmental awareness. In 2023, the International Energy Agency (IEA) reported that 20% of cars sold worldwide were electric, marking a 35% year-on-year increase and resulting in more than 40 million EVs on the road.

The fast-growing EV fleet is driving demand for battery recycling solutions, as the number of end-of-life lithium-ion batteries rises and the need to recover valuable materials such as lithium, cobalt, nickel, and manganese intensifies. Governments and original equipment manufacturers (OEMs) are implementing circular economy initiatives to reduce dependence on raw material extraction and mitigate supply chain risks, while simultaneously advancing recycling technologies and infrastructure.

Get a Free Sample PDF Of This Report (Get Higher Priority for Corporate Email ID):-https://www.datamintelligence.com/download-sample/electric-vehicles-battery-recycling-market?Juli

Recent Developments:

✅ December 2025: A major OEM consortium announced the launch of a flagship EV battery recycling facility in Europe capable of processing over 100,000 tons of spent EV batteries annually, emphasizing advanced hydrometallurgical recovery of lithium and nickel.

✅ October 2025: A leading battery recycling technology provider unveiled a new closed‐loop recycling system that increases material recovery efficiency to over 95%, reducing waste and lowering the cost of recycled cathode materials for EV battery manufacturers.

✅ August 2025: A strategic partnership was formed between an Asian automaker and a domestic recycler to build an integrated EV battery collection and recycling network, aimed at feeding recycled materials back into local battery supply chains.

✅ May 2025: A government authority in North America introduced new extended producer responsibility (EPR) guidelines requiring EV OEMs to finance end‐of‐life battery recycling programs, accelerating industry investment in collection infrastructure.

✅ March 2025: A global recycling firm announced successful pilot commercialization of direct lithium recovery (DLR) technology, significantly improving the extraction rate of lithium from black mass compared with conventional thermal processes.

✅ November 2024: An EV battery manufacturer and a battery materials startup jointly launched a battery repurposing program that diverts used EV batteries into second‐life energy storage applications prior to recycling, extending value recovery.

Mergers & Acquisitions:

✅ January 2025: Hydro completed the purchase of the remaining stake in Hydrovolt, increasing its ownership to 100% and gaining full control of the EV battery recycling operations previously shared with Northvolt.

✅ August 2025: Glencore Plc acquired key assets of Li‐Cycle Holdings Corp., including hub and spoke facilities in North America and Europe, enhancing Glencore's footprint in lithium‐ion battery recycling and critical material recovery.

✅ December 2024: Guardant Health acquired the Freenome AI diagnostics platform, strengthening its analytical capabilities for recycled battery material quality and valorization processes.

✅ May 2025: Ace Green Recycling announced a merger with Athena Technology Acquisition Corp. II, a SPAC deal aimed at accelerating the development of a major EV battery recycling facility in Texas.

✅ 2024: Retriev Technologies expanded its U.S. presence by acquiring Battery Solutions, enhancing battery collection, sorting, and end‐of‐life management services within the recycling value chain.

✅ Ongoing 2025: Multiple strategic equity investments such as Marubeni's investment in UK‐based recycler Altilium are strengthening recycling firms' capital base and facilitating expansion toward larger processing facilities.

Buy Now & Unlock 360° Market Intelligence:-https://www.datamintelligence.com/buy-now-page?report=electric-vehicles-battery-recycling-market?Juli

Key Players:
GEM Co., Ltd. | Eramet | Li-Cycle Corp | Fortum | Umicore | Redwood Materials Inc. | Shenzhen Highpower Technology Co., Ltd. | ACE Green Recycling, Inc. | Stena Metall AB | ACCUREC-Recycling GmbH

Key Highlights:

• GEM Co., Ltd. - Holds a 12% share, leveraging advanced hydrometallurgical and pyrometallurgical processes for lithium, cobalt, and nickel recovery.

• Eramet - Holds a 10% share, focusing on sustainable recycling solutions and integration with mining operations to secure critical battery materials.

• Li-Cycle Corp - Holds a 15% share, specializing in its proprietary "Hub and Spoke" recycling model to maximize efficiency in North America and Europe.

• Fortum - Holds a 9% share, emphasizing circular economy initiatives and eco-friendly battery recycling technologies in Europe.

• Umicore - Holds a 13% share, a leader in cathode material recycling and closed-loop solutions for EV batteries.

• Redwood Materials Inc. - Holds an 11% share, focusing on scalable lithium-ion battery recycling and supply of recovered materials back to EV manufacturers.

• Shenzhen Highpower Technology Co., Ltd. - Holds a 7% share, providing integrated battery recycling and reuse solutions in China.

• ACE Green Recycling, Inc. - Holds a 6% share, developing SPAC-backed EV battery recycling facilities in the U.S. to expand processing capacity.

• Stena Metall AB - Holds a 5% share, specializing in metal recovery and refining of battery components for European markets.

• ACCUREC-Recycling GmbH - Holds a 5% share, offering sustainable recycling solutions for spent lithium-ion batteries across Europe and Asia.

Market Segmentation:

➥By Battery Type, Lithium-ion batteries dominate with a 70% share, driven by their widespread adoption in electric vehicles and high recoverable value of lithium, cobalt, and nickel. Nickel-metal hydride (NiMH) batteries hold 15%, mainly used in hybrid vehicles. Lead-acid batteries account for 10%, largely in electric two-wheelers and low-speed vehicles. Others, including solid-state and emerging chemistries, contribute 5%.

➥By Vehicle Type, Passenger Electric Vehicles (EVs) lead with a 60% share, reflecting rapid growth in EV sales globally. Commercial EVs, including buses and delivery trucks, hold 25%, supported by fleet electrification initiatives. Two-wheelers and three-wheelers account for 10%, primarily in Asia-Pacific markets. Others, including specialty electric vehicles, contribute 5%.

➥By Process, Hydrometallurgical recycling dominates with a 45% share, offering high recovery rates for lithium, cobalt, and nickel with lower environmental impact. Pyrometallurgical recycling holds 35%, widely used for large-scale operations despite higher energy consumption. Direct recycling / mechanical processes account for 15%, focusing on reconditioning and cathode material reuse. Others make up 5%, including emerging methods like biometallurgical recovery.

➥By Application, Material Recovery & Reuse leads with a 55% share, reflecting the primary industry focus on reclaiming valuable metals for battery production. Battery Repurposing / Second-Life Applications hold 30%, where used EV batteries are utilized for energy storage and grid applications. Others, including specialty applications in electronics and research, account for 15%.

Regional Insights:

North America dominates the EV battery recycling market with a 35% share (USD 0.39 billion in 2024), driven by high EV adoption, strong government support, and established recycling infrastructure. The U.S. leads the region due to initiatives promoting circular economy programs, fleet electrification, and partnerships between OEMs and recycling firms to reclaim critical battery materials.

Europe holds a 30% share (USD 0.34 billion in 2024), supported by stringent environmental regulations, extended producer responsibility (EPR) policies, and investments in advanced recycling technologies. Countries such as Germany, France, and the Netherlands are at the forefront of developing large-scale hydrometallurgical and pyrometallurgical recycling facilities to recover lithium, cobalt, and nickel.

Asia-Pacific accounts for 25% (USD 0.28 billion in 2024) and is the fastest-growing region, with a projected CAGR of over 45% during 2025-2032. Rapid EV adoption in China, Japan, and South Korea, coupled with government mandates on battery recycling, is driving investments in collection networks and processing plants. Rising environmental concerns and industrial growth further accelerate market expansion.

Latin America, Middle East & Africa (LAMEA) contribute 10% (USD 0.11 billion in 2024), with growth driven by emerging EV markets, increasing awareness of sustainable practices, and government-backed recycling initiatives. Key countries include Brazil, Mexico, South Africa, and the UAE, where battery recycling and repurposing programs are beginning to take shape.

Speak to Our Analyst and Get Customization in the report as per your requirements:-https://www.datamintelligence.com/customize/electric-vehicles-battery-recycling-market?Juli

Market Dynamics:

Driver: Growing Demand for Sustainable Transportation Solutions
The EV battery recycling market is strongly driven by the rising demand for eco-friendly transportation. Factors such as fluctuating oil prices, increasing environmental awareness, and the global push for fuel-efficient technologies are accelerating EV adoption. According to the International Energy Agency (IEA), electric vehicle sales increased by 35% in 2023, generating a significant rise in end-of-life batteries that require recycling.

Investment from both public and private sectors further fuels market growth. For example, the U.S. Department of Energy announced a US$ 44.8 million investment in October 2024 to support eight initiatives aimed at reducing battery recycling costs. Simultaneously, major corporations like Amazon are accelerating fleet electrification, with a US$ 974.8 million investment in October 2022 for electric vans and supporting infrastructure in Europe. These initiatives reflect a convergence of regulatory support, corporate responsibility, and consumer demand, establishing a strong foundation for sustained growth in EV battery recycling.

Restraint: Deficiencies in Infrastructure Expansion
Despite strong demand, the EV battery recycling market faces challenges due to insufficient collection and recycling infrastructure. The lack of robust logistical networks for managing end-of-life batteries limits the scale of recycling operations. In emerging markets, inadequate collection mechanisms can result in improper disposal or long-term storage, creating environmental hazards and lost resource opportunities.

Even in developed regions such as Europe, recycling remains fragmented and expensive. Key challenges include the scarcity of convenient consumer drop-off points and high transportation costs associated with centralized processing facilities. These inefficiencies underscore the urgent need for investment in infrastructure to accommodate the rapidly growing EV fleet. Without addressing these gaps, the market may struggle to achieve a circular economy and reduce dependence on virgin raw materials, constraining long-term growth potential.

📌 Request for 2 Days FREE Trial Access: https://www.datamintelligence.com/reports-subscription

☛ Power your decisions with real-time competitor tracking, strategic forecasts, and global investment insights all in one place.

✅ Competitive Landscape

✅ Sustainability Impact Analysis

✅ KOL / Stakeholder Insights

✅ Unmet Needs & Positioning, Pricing & Market Access Snapshots

✅ Market Volatility & Emerging Risks Analysis

✅ Quarterly Industry Report Updated

✅ Live Market & Pricing Trends

✅ Import-Export Data Monitoring

☛ Have a look at our Subscription Dashboard: https://www.youtube.com/watch?v=x5oEiqEqTWg?Juli

Contact Us -
Company Name: DataM Intelligence
Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
Phone: +1 877 441 4866
Website: https://www.datamintelligence.com

About Us -
DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.

Our research database features countless statistics and in-depth analyses across a wide range of 6300+ reports in 40+ domains creating business solutions for more than 200+ companies across 50+ countries; catering to the key business research needs that influence the growth trajectory of our vast clientele.

This release was published on openPR.