The limited availability of lithium and rapidly increasing demand for electric vehicles are driving the growth of the lithium-ion battery recycling market. Due to the above-mentioned factors, the lithium-ion battery recycling industry is projected to generate $991.5 million revenue in 2030, growing at a CAGR of 19.9% during 2020–2030.
The COVID-19 pandemic has had a significant influence on market for lithium-ion battery recycling throughout the world, owing to the closure of recycling facilities in order to comply with the government restrictions, especially in 2020. Moreover, due to the impact on the Li-ion battery industry as a consequence of the temporary suspension of operations, there was major influence on the automobile production as a result of the fewer workers in the sector. This in turn, resulted in the reduced demand for the lithium-ion battery recycling solutions.
The lithium-ion battery recycling market is categorized into lithium–cobalt (LCO), lithium–ferro phosphate (LFP), lithium–nickel–cobalt–aluminum oxide (NCA), lithium–nickel–manganese–cobalt oxide (NMC), and lithium-ion–manganese oxide (LMO), based on battery type. Among these, the LCO category accounted for the largest market share in 2020. During the forecast period, the category is expected to continue to dominate the market due to the high energy density of LCO batteries, which makes them appropriate for portable electronic devices such as laptops, mobile phones, and tablets.
Furthermore, automotive, power, electrical & electronics, and others are the divisions of the market for lithium-ion battery recycling, under segmentation by end user. Among these, the automotive category accounted for the largest market share, in terms of value, and it is projected to have the highest growth rate in the coming years, on the basis of end user. This growth can be ascribed mostly to the rising global usage of electric cars and scarcity of lithium resources. Thus, with the growing popularity of electric vehicles, the need for recycled lithium-ion batteries is projected to rise in the automotive industry.
Geographically, in 2020, Asia-Pacific (APAC) dominated the lithium-ion battery recycling market, and it is expected to retain its position during the forecast period. This is attributed to the increased use of electric cars; consequently, manufacturers are looking into recycling old batteries in order to fulfill the need for lithium-ion batteries. Essentially, the growing awareness on the environmental benefits of electric cars is projected to drive the demand for recycled lithium-ion battery materials in the near future.
Key Players in the lithium-ion battery recycling market have been involved in various partnerships and collaborations in order to gain a significant competitive advantage. For instance, in March 2020, Fortum Oyj, BASF SE, and Nornickel signed a letter of intent to plan a lithium-ion battery recycling cluster in Harjavalta, Finland, in order to serve the electric vehicle market across the globe. With the new plant coming up, manufacturers would be able to reuse the precious metals present in batteries.
Similarly, in November 2019, MG Motor India Pvt Ltd. announced its partnership with Belgium-based lithium-ion battery recycler Umicore Group, with a focus on the end-of-life applications of used electric vehicle battery packs. The partnership is aimed at recycling battery packs of MG ZS electric vehicles in order to ensure environment-friendly battery disposal.
ACCUREC Recycling GmbH, Li-Cycle Corp., American Manganese Inc., Neometals Ltd., RECUPYL S.A.S., Batrec Industrie AG, Retriev Technologies, Hunan Brunp Recycling Technology Co. Ltd., Umicore Group, and Ganfeng Lithium Co. Ltd. are the major lithium-ion battery recycling market.