The global EV battery recycling market, by value, is estimated to be USD 0.54 Billion in 2024 and is projected to reach USD 23.72 Billion by 2035, at a CAGR of 40.9% from 2024 to 2035.The growing demand for electric vehicles is driving the need for efficient recycling of EV batteries to ensure a stable supply of critical materials like lithium, cobalt, and nickel. Stringent environmental regulations and extended producer responsibility (EPR) initiatives encourage manufacturers to adopt recycling solutions. Additionally, advancements in recycling technologies are making the process more cost-effective and scalable, further boosting market growth.
Nickel holds the significant market share in the forecast period in material extraction segment. Recycling nickel from EV batteries is becoming increasingly critical as the demand for electric vehicles rises and the need for sustainable resource management intensifies. Nickel, a vital component of many EV battery chemistries, especially Nickel-Manganese-Cobalt (NMC) batteries, enhances energy density and overall battery performance. Recycling nickel reduces dependence on mining, conserves natural resources, and minimizes the environmental impact of raw material extraction, aligning with circular economy principles. For instance, in in November 2024, ICoNiChem, a UK-based cobalt and nickel production plant owned by Cengiz Holding, has launched a pioneering project with Canadian battery technology company NOVONIX to advance sustainable battery materials. The partnership, part of the Canada-UK 2024 Critical Minerals Program, aims to recover nickel, cobalt, and lithium from end-of-life lithium-ion batteries to produce new cathode materials essential for EV batteries. Additionally, regulatory pressures and automakers’ commitments to sustainable practices are driving investments in closed loop recycling systems, ensuring a stable supply of nickel to meet the rising demand for sustainable EV production.
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Electric truck segment will grow at significant rate during the forecast period. The recycling of electric truck batteries is expected to increase due to the long travel distances that these vehicles often cover. Electric trucks, particularly those used for freight and long-haul transport, are designed to handle extended routes, which requires large, high-capacity batteries. Over time, the degradation of these batteries caused by the stress of long-distance travel, repeated charging cycles, and environmental factors can significantly reduce their efficiency and range. As a result, the need for recycling grows to reclaim valuable materials like lithium, cobalt, and nickel from these aging batteries for reuse in the production of new batteries. OEMs are focusing on designing batteries that are easier to recycle, while some are establishing partnerships with recyclers to secure a sustainable supply of raw materials. For instance, in September 2024, Mitsubishi Fuso Truck and Bus Corporation (Japan) announced to build a test facility for recovering materials from used electric vehicle batteries at its Kawasaki Plant, in partnership with True 2 Materials Pte. Ltd (Singapore,). These efforts are fueled by both environmental concerns and the need to manage the rising volume of batteries reaching the end of their lifecycle.
The North America is expected to hold a lucrative market share during the forecast period, driven by increasing investments in electric vehicle manufacturing, advancements in battery technology, and robust government incentives promoting clean energy. This rise can be attributed majorly to the stringent regulations implemented by the Environmental Protection Agency (EPA) regarding air emission standards in the region. Major automakers in North America, including Tesla, Ford, BMW and GM, are integrating circular economy strategies that prioritize battery reuse and recycling to close the material loop. For instance, in September 2024, BMW of North America and Redwood Materials have formed a partnership to collect and recycle lithium-ion batteries in the US. Batteries to be recycled are to come from BMW, MINI, and Rolls-Royce electric vehicles. Another reason for the rise in battery recycling in North America is the scarcity of metals for automotive and industrial battery production. This is expected to drive the electric vehicle battery recycling market in the region.
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