Battery Recycling Market Expanding at 10.14% CAGR Through 2036 - By Battery Type / By Process Type / By End Use | U.S. • Germany • China • India

The global Battery Recycling Market was valued at US$ 7.1 billion in 2025 and is projected to reach US$ 20.4 billion by 2036, expanding at a robust compound annual growth rate (CAGR) of 10.14% during the forecast period from 2026 to 2036.

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This substantial growth trajectory reflects the rapid expansion of electric vehicles (EVs), renewable energy storage systems, and consumer electronics, all of which are generating a growing volume of end-of-life batteries. Battery recycling is no longer viewed solely as a regulatory obligation but has evolved into a strategic industry supporting material security, sustainability, and circular economy objectives across the global energy storage ecosystem.

In 2025, Europe dominated the global market with a 40.1% revenue share, while lead-acid batteries accounted for 45.6% of total market revenue, highlighting the maturity of recycling infrastructure for conventional battery technologies.

Market Overview

Battery recycling involves the collection, disassembly, processing, and recovery of valuable materials such as lithium, cobalt, nickel, manganese, copper, lead, and plastics from spent batteries. Recycling processes typically include mechanical shredding followed by hydrometallurgical, pyrometallurgical, or direct recycling techniques to extract and refine materials to battery-grade quality.

The recovered materials are increasingly being reused in the manufacturing of new batteries, supporting closed-loop production models and reducing dependence on virgin mining resources. Battery recycling plays a critical role across multiple applications, including electric vehicles, consumer electronics, industrial energy storage systems, and renewable energy infrastructure.

As global electrification accelerates, battery recycling has emerged as a strategically vital segment of the clean energy transition, addressing environmental concerns, supply chain risks, and long-term resource sustainability.

Key Market Growth Drivers

Rapid Expansion of Electric Vehicle (EV) and Energy Storage Ecosystem
The rapid adoption of electric vehicles and renewable energy storage systems is the primary growth driver for the battery recycling market. Government incentives, fuel emission regulations, and aggressive decarbonization targets are accelerating EV production worldwide. This expansion is creating a growing inventory of spent batteries, unlocking significant commercial opportunities for recycling companies.

Battery recycling enables OEMs and battery manufacturers to secure a stable supply of critical raw materials such as lithium, cobalt, nickel, and manganese, which are increasingly exposed to geopolitical risks, supply chain disruptions, and environmental concerns.

Recycling also allows manufacturers to hedge against commodity price volatility, lower production costs, and reduce reliance on mining activities, thereby enhancing competitiveness within the EV and energy storage markets.

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Stringent Environmental Regulations and Circular Economy Mandates

Stringent environmental regulations and extended producer responsibility (EPR) mandates are accelerating battery recycling adoption globally. Governments are requiring manufacturers to implement formal battery collection, recycling, and disposal programs to prevent hazardous materials from contaminating landfills and ecosystems.

Circular economy policies are reshaping the battery value chain by promoting material recovery and reuse, reducing carbon emissions associated with mining and refining virgin materials. Companies aligned with circular economy principles benefit from improved ESG performance, enhanced investor confidence, and stronger sustainability-focused brand positioning.

Emergence of Second-Life Battery Applications

The commercialization of second-life applications for retired EV batteries is further strengthening the battery recycling ecosystem. Batteries that no longer meet automotive performance standards retain residual value and can be repurposed for stationary energy storage, grid balancing, renewable integration, and backup power systems.

This trend is driving structured collection, refurbishment, and recycling models, extending battery lifecycles and improving overall economic returns.

Analysis of Key Players - Key Player Strategies

The battery recycling market is characterized by the presence of established players and emerging innovators focused on technological advancement, capacity expansion, and vertical integration.

Leading companies include:

• Johnson Controls International PLC
• Battery Solutions LLC
• East Penn Manufacturing Company
• G&P Batteries.
• Retriev Technologies Inc.
• EnerSys
• Umicore N.V.
• Exide Technologies
• LI-CYCLE CORP.
• American Manganese Inc.
• Kinsbursky Bros. Supply Inc.
• Call2Recycle, Inc.
• uRecycle
• Stena Metall AB
• The Doe Run Company.
• Gopher Resource
• Element Resources DE LLC
• Redwood Materials Inc.
• ECOBAT
• Others.

These companies specialize in recycling lead-acid, lithium-ion, nickel-cadmium, and nickel-metal hydride batteries, recovering high-value materials for reuse in automotive, industrial, and energy storage applications.

Market Challenges & Opportunities

Challenges

Despite strong growth prospects, the battery recycling market faces several challenges, including:

• High capital investment requirements for advanced recycling technologies

• Technical complexity associated with lithium-ion battery chemistries

• Inconsistent collection infrastructure across emerging economies

• Safety risks related to battery handling and transportation

Opportunities

Key opportunities include:

• Localization of battery material supply chains

• Integration of recycled materials into domestic battery manufacturing

• Commercialization of second-life battery applications

• Development of scalable, high-recovery recycling technologies

Battery recycling offers manufacturers a pathway to secure long-term material availability while enhancing sustainability profiles and operational resilience.

Key Player Strategies

Market participants are adopting several strategic initiatives, including:

• Investment in advanced hydrometallurgical and direct recycling technologies

• Partnerships with EV manufacturers, battery producers, and waste management companies

• Expansion of regional recycling capacities

• Development of closed-loop recycling ecosystems

• Focus on increasing metal recovery rates and purity levels

These strategies are enabling companies to ensure feedstock availability, improve cost efficiency, and strengthen their position within the battery value chain.

Recent Developments

• In October 2025, Redwood Materials announced that it has successfully completed a $350 million Series E capital raise led by Eclipse Ventures and also included investments from NVidia's NVentures and others, which will enable Redwood to further accelerate its growth by increasing the amount of recycled lithium, nickel, cobalt, and copper used for developing energy storage and battery recycling facilities in the United States. Redwood expanded its R&D center in San Francisco and added significant capacity for processing recycled lithium, nickel, cobalt, and copper in South Carolina to support the expansion of Redwood's processing facilities in North America.

• In August 2025, Glencore completed the acquisition of Li-Cycle, adding Li-Cycle's cutting-edge battery recycling skillset to Glencore's existing global mining and refining business, which should enable Glencore to continue to grow its participation through all stages of transactions in lithium batteries. Additionally, the acquisition enhances Glencore's total offering to battery manufacturers by providing more financial and logistical support to Li-Cycle's recycling operations and allowing Glencore to scale Li-Cycle's recycling business by increasing its scale and providing Glencore with greater geographical reach. Ultimately, further vertical integration is occurring in the mining industry as companies such as Glencore develop a commitment to developing methods to recycle raw battery materials in a sustainable manner and increase the viability of battery material recycling operations for their customers.

• In 2025, BASF launched commercial production at its Black Mass plant in Schwarzheide, Germany, marking an important milestone in the scaling of European Li, ion recycling. The site takes the battery packs of vehicles or old batteries from production, then the facility mixes thesescrapmaterials with some production waste to obtain black mass, which is a highly metal, concentrated intermediate (e.g., nickel, cobalt, lithium). BASF views this as the basis for a local circular supply chain, thus allowing hydromet recovery partners to transform black mass into the battery, grade materials to be used in the production of new batteries.

Investment Landscape and ROI Outlook

The battery recycling market is attracting strong private and institutional investment due to its alignment with energy transition goals and long-term material security needs. Government incentives, recycling targets, and funding support are improving the economic viability of recycling operations.

Investors benefit from:

• High demand visibility driven by EV penetration

• Stable feedstock availability over the long term

• Strong margins from recovered high-value metals

• Favorable ESG-driven capital flows

The expected ROI outlook remains positive as recycling technologies mature and scale efficiencies improve.

Market Segmentations

By Battery Type
• Lead-Acid Batteries
• Lithium-Ion Batteries (LFP, NMC, LCO, LMO)
• Nickel-Cadmium Batteries
• Nickel-Metal Hydride Batteries
• Zinc-Carbon Batteries
• Alkaline Batteries
• Others

By Process Type
• Hydrometallurgical Process
• Pyrometallurgical Process
• Direct Recycling

By Spent Battery Source
• Automotive
• Electronic Appliances
• Others

By End Use
• Extraction of Materials
• Disposal
• Repacking, Reuse & Second Life

By Region
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Europe leads the market with a 40.1% share, supported by strict regulatory frameworks and advanced recycling infrastructure.

Why Buy This Report?

• Comprehensive market sizing and 10-year forecasts

• In-depth analysis of drivers, trends, challenges, and opportunities

• Detailed segmentation and regional insights

• Competitive landscape and company profiles

• Investment and ROI assessment

• Strategic insights for OEMs, recyclers, investors, and policymakers

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FAQs

1. What is driving the growth of the battery recycling market?
The rapid expansion of EVs, energy storage systems, and stringent environmental regulations are the primary growth drivers.

2. Which region dominates the battery recycling market?
Europe leads the market with a 40.1% revenue share due to strong regulations and advanced infrastructure.

3. Which battery type holds the largest market share?
Lead-acid batteries dominate the market, accounting for 45.6% of revenue in 2025.

4. What are the key recycling technologies used?
Hydrometallurgical, pyrometallurgical, and direct recycling processes are widely used.

5. What opportunities exist for investors?
Second-life battery applications, localized material supply chains, and ESG-aligned investments offer strong growth opportunities.

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