Battery Recycling Market Size, Trends and Growth Analysis by 2027

The battery recycling industry was valued at approximately US$ 15,690.07 million in 2020 and is anticipated to grow to US$ 36,002.73 million by 2028, reflecting a compound annual growth rate (CAGR) of 13.4% from 2021 to 2028.

Battery recycling serves as a crucial method for reprocessing and reusing batteries, significantly reducing hazardous waste. This process has a considerably lower environmental footprint compared to the extraction of raw materials. Direct recycling methods can lead to a notable reduction in energy consumption and greenhouse gas emissions. Various policies and regulations have been established to ensure the safety of consumer products and to facilitate the safe handling, storage, treatment, reuse, recycling, and disposal of batteries utilized across different applications.

The battery recycling market is categorized based on the source of batteries, which includes segments such as automotive, industrial, household, consumer electronics, and forklift batteries. In 2020, the consumer electronics segment was the largest contributor to the battery recycling market. Numerous devices used in offices, homes, and entertainment, as well as lighting systems and tools, rely on consumer batteries. These batteries primarily power small, portable electronic devices, including laptops, smartphones, remote controls, power tools, and gaming consoles that require a cordless power supply. The market offers various types of consumer batteries, such as alkaline, nickel-cadmium, nickel-metal hydride, lead-acid, lithium-ion, and primary lithium, each serving distinct applications. The unique characteristics of different consumer batteries necessitate specific safety protocols and recycling methodologies.

Geographically, the battery recycling market is divided into several regions: North America, Europe, Asia Pacific (APAC), South and Central America (SAM), and the Middle East & Africa (MEA). In 2020, the Asia Pacific region experienced a surge in the consumption of lithium-ion batteries, largely driven by the expansion of the automotive industry and the rising adoption of electric vehicles (EVs). Government initiatives in this region are actively promoting the growth of the electric vehicle sector. The increased utilization of batteries has prompted the implementation of effective battery management strategies, including recycling, to minimize waste disposal. Additionally, the heightened production of lithium-ion batteries, coupled with various governmental support for recycling initiatives, is propelling market growth in Asia Pacific. The popularity of lithium-ion batteries in this region can be attributed to their lower self-discharge rates and superior performance compared to other rechargeable battery types.

The COVID-19 pandemic has significantly impacted the electronics industry, adversely affecting the battery recycling market's growth. Measures taken to curb the virus's spread have exacerbated challenges across multiple sectors, including electronics, automotive, and energy, disrupting delivery schedules and increasing import-export tariffs. The pandemic has caused operational inefficiencies and disruptions in supply chains due to the abrupt closure of national and international borders. The sourcing of raw materials from suppliers was hindered, and manufacturing facilities faced temporary shutdowns during extended lockdowns. According to a report from the National Center for Biotechnology Information published in December 2020, the pandemic has severely disrupted the recycling chain, which involves the global shipping of used batteries for reprocessing. As economies begin to recover, the demand for battery recycling is expected to increase worldwide. However, the emphasis on just-in-time production remains a significant challenge to market growth. The rising need for battery recycling across various sectors, including automotive, industrial, household, and consumer electronics, along with substantial investments from leading manufacturers, is projected to drive the growth of the battery recycling market.

Key players in the global battery recycling market include Aqua Metals, Inc., Call2Recycle, Inc., Clarios, LLC, Com2 Recycling Solutions, East Penn Manufacturing Company, Exide Technologies, G P Batteries, Gopher Resource LLC, Retriev Technologies Inc, and Terrapure Environmental Ltd.

The overall size of the global battery recycling market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the information and gain deeper analytical insights. Participants in this research included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the global battery recycling sector.