Lithium-ion Battery Recycling Market Size & Share Trends, 2033

Lithium-ion Battery Recycling Market Overview

Lithium-ion Battery Recycling Market size was valued at USD  4.93 billion in 2025 and is expected to reach USD  14.35 billion by 2033, growing at a CAGR of 14.29% from 2025 to 2033.

The lithium-ion battery recycling industry plays a pivotal role in the circular economy by extracting critical metals like lithium, cobalt, nickel, and manganese from spent batteries. In 2024, over USD 10 billion worth of recycled materials were processed globally, recovering approximately 95% of valuable components. These materials are then fed back into battery manufacturing, reducing dependency on raw mining. By mid-2025, recycling facilities processed over 20 GWh annually—a volume equivalent to recycling batteries from roughly 250,000 electric vehicles—highlighting the scale of operations emerging in the sector.

Investment into recycling infrastructure surged between 2022 and 2025, with over USD 3.5 billion in private and public funding directed toward hydrometallurgical and pyrometallurgical capabilities. Europe led collection efforts in 2024, capturing nearly 48% of portable battery waste compared to 37% by Asia-Pacific in the lithium-ion segment. Meanwhile, North America’s recycling capacity grew by 78% from 2021 through 2023, supported by government funding and industrial partnerships targeting domestic supply security.

By 2025, automotive battery scrap became the dominant feedstock—comprising close to 63% of recycling volume—with consumer electronics providing around 68% of the non-automotive segment in 2024. Recycling methods are diversifying: hydrometallurgical processing captured an estimated 65% share, valued for higher metal recovery and energy efficiency. Beyond metals, companies are innovating second-life applications, channeling lightly used EV batteries into stationary energy storage systems for data centers, enabling circular use before final recycling.

Key Findings

DRIVER: Growing electric vehicle fleet—over 5 million EVs on the road in North America alone—has elevated annual battery recycling volumes to more than 20 GWh.

COUNTRY/REGION: Europe led collection efforts in 2024, capturing nearly 48% of portable battery scrap, while China processed approximately 529,000 tonnes of spent batteries.

SEGMENT: Hydrometallurgical processing dominated with around 65% of total recycled mass in 2024 due to superior elemental recovery efficiency.

Lithium-ion Battery Recycling Market Trends

In recent years, the market has pursued technological and strategic advancements to enhance profitability and ecological impact. Hydrometallurgical recycling has become the preferred option, reaching over 65% share in 2024 owing to high recovery rates and reduced CO₂ emission profiles compared to thermal methods. Asia-Pacific led global efforts, processing nearly 45% of all recycled lithium-ion batteries in 2024, thanks to robust EV adoption and government policies. Meanwhile, North American capacity expanded by nearly 80% from 2021 through 2023, spurred by public-private investments. Another significant trend is “second-life” reuse: companies repurpose used EV batteries for energy storage, delaying full recycling. For instance, more than 20 GWh of such storage capacity has been built in North America by 2025, supporting data center and grid applications. Battery chemistry also shapes recycling focus—with Li-NMC leading the recovered segment in 2024 and LiFePO₄ gaining momentum as EV makers shift to cobalt-free chemistries. Additionally, consumer electronics continue to supply significant volume, accounting for nearly two-thirds of non-automotive recycling. Finally, tighter environmental regulations—like Europe’s increasing collection targets—are propelling infrastructure upgrades and feedstock sourcing from used batteries.

Lithium-ion Battery Recycling Market Dynamics

The market is driven by surging demand for raw materials amid tight mining supply and rising EV penetration. In 2024, electric vehicles accounted for nearly 63% of all lithium-ion batteries recycled, highlighting the strategic importance of automotive scrap. Recovered metals from recycling now feed back into lithium-ion manufacturing, reducing reliance on primary mining. At the same time, environmental mandates in Europe and North America, backed by USD billions in incentives and grants, encourage investment in recycling capacity and innovation. Companies are also adopting second-use strategies: over 20 GWh of repurposed EV batteries were deployed by mid-2025, providing energy storage for data centers and utilities. However, molten salt and pyrometallurgical methods still account for some capacity, offering high throughput but lower recovery efficiency. Despite these advances, challenges remain: collection infrastructure is uneven globally, with battery waste still low in many regions; and fluctuating commodity prices can impact recycling economics. Nevertheless, vertical integration—from collection to cathode-refinement—is enhancing margins and supply chain resilience for industry players.

DRIVER

Rapid growth in electric vehicle fleet

More than 5 million EVs were on North American roads by 2025, causing annual recycled battery volumes to climb past 20 GWh. Recycling companies process this feedstock to recover lithium, nickel, cobalt, and copper, feeding them back into battery production.

RESTRAINT

Insufficient collection systems in emerging markets

While Europe and North America have structured take-back systems, many regions—particularly in Southeast Asia, Latin America, and Africa—still lack formal collection channels. As a result, a significant share of spent batteries remains uncollected, reducing feedstock availability and profitability for recycling firms.

OPPORTUNITY

Second-life battery applications

Repurposing EV batteries for stationary energy storage is growing fast: over 20 GWh of such systems were operational in North America by 2025. This creates value-added revenue before final recycling and supports renewable energy integration in grid and industrial sectors.

CHALLENGE

Metal price volatility and process costs

Recycling margins depend heavily on commodity prices. Sharp drops in cobalt or nickel spot prices in 2023 impacted economics for recyclers. Additionally, capital and operational costs for hydrometallurgical plants remain high—often several hundred million dollars per facility—requiring large processing volumes for profitability.

Lithium-ion Battery Recycling Market Segmentation

The market is segmented by battery chemistry and application, revealing nuanced flows and recovery pathways. Li-NMC batteries—employed extensively in EVs and energy systems—dominated recycling volumes in 2024, accounting for over 50% of processing tonnage. Their complex cathode mineral composition makes them economically valuable despite recovery challenges. LiFePO₄ chemistry, favored in e-buses and stationary storage, represented about 30% of battery scrap by volume; though less valuable per kilogram, its abundance and regulatory push make it an emerging target. On the application side, electric vehicles contributed approximately 63% of recycled volumes, while consumer electronics—smartphones, laptops, power tools—comprised nearly 68% of non-automotive feedstock. Emerging markets including telematics, solar storage, and e-mobility devices also contribute proportionally. Hydrometallurgical processing leads with about 65% share, offering efficient metal recovery from black mass. Pyrometallurgy provides bulk processing capability, while direct recycling processes are gaining traction as novel, cost-effective models. The segmentation underscores a transition toward chemistry-specific recycling routes, coupled with tech diversification and increasing source variety.

By Type

Lithium-Nickel Manganese Cobalt (Li-NMC): Li-NMC batteries comprised over 50% of recycled volumes in 2024, driven by widespread usage in EVs and energy storage. Their complex chemistry yields high recovery value—nickel, cobalt, lithium—but also requires multi-stage hydrometallurgical processing to separate mixed metals efficiently.
Lithium-Iron Phosphate (LiFePO4): LiFePO₄ batteries made up roughly 30% of recycled volume in 2024, largely due to e-bus fleets and stationary systems. While less valuable per tonne, their abundance and simpler cathode structure facilitate cost-efficient reuse or recycling, with growing infrastructure responding to regional policy mandates.

By Application

Automotive: Automotive lithium-ion scrap supplied around 63% of feedstock in 2024, reflecting the scaling EV fleet. Recyclers processed over 20 GWh of EV battery capacity that year, recovering materials sufficient for over 250,000 new EVs or storage systems.
Consumer Electronics: Consumer electronics—phones, laptops, power tools—accounted for nearly 68% of non-automotive battery recycling volumes in 2024. These small-format batteries collectively represent substantial metal feedstock, with a strong hydrometallurgical recovery yield above 90%.

Regional Outlook of the Lithium-ion Battery Recycling Market

The regional outlook of the lithium-ion battery recycling market highlights significant activity across Asia-Pacific, North America, and Europe, with emerging interest in Latin America and the Middle East & Africa. Asia-Pacific leads the market due to the region’s dominance in battery manufacturing and high EV adoption, particularly in China, Japan, and South Korea. China alone accounts for more than 60% of the world’s lithium-ion battery production and over 70% of global battery recycling capacity. In 2024, China processed approximately 500,000 tons of end-of-life lithium-ion batteries, underscoring its robust recycling infrastructure. North America, led by the United States and Canada, is rapidly investing in domestic recycling capabilities to reduce dependence on foreign sources for critical minerals. The U.S. Department of Energy has funded over 15 major recycling projects since 2022, aiming to recover lithium, cobalt, and nickel at scale. In Europe, strict environmental regulations and a strong push toward circular economy practices are accelerating recycling initiatives. Germany and France are prominent players, with the EU requiring battery manufacturers to recover at least 50% of lithium and 90% of cobalt and nickel from used batteries by 2027. Meanwhile, Latin America is gaining traction due to its abundant lithium reserves in countries like Chile, Argentina, and Bolivia, though recycling infrastructure is still developing. In the Middle East & Africa, South Africa is emerging as a potential recycling hub, with several pilot projects focusing on urban mining and battery waste. Regional disparities in infrastructure, policy support, and technological advancement continue to shape the global recycling landscape.

North America

North American recycling capacity grew by 78% from 2021 to 2023. In 2024, companies processed over 20 GWh of EV and electronics batteries. Incentives such as USD 775 million in federal grants and a USD 2 billion DOE loan to Redwood Materials are expanding domestic processing reach.

Europe

Europe led portable battery recycling with 48% collection rates in 2024. EU regulation mandates a 65% collection target by 2025. Germany, France, and the Netherlands are establishing new hydrometallurgical plants targeting Li-NMC and LiFePO₄ output.

Asia-Pacific

Asia-Pacific accounted for approximately 45% of global recycling volume in 2024. China processed over 529,000 tonnes of spent batteries in 2023. Japan and South Korea are rapidly expanding recycling facilities as EV fleets and portable electronics proliferate.

Middle East & Africa

Recycling volumes here remain modest but are growing at roughly 18% annually. Investments in battery testing, design, and limited recycling infrastructure—totalling around USD 2 billion by 2025—are being made, primarily in Gulf states and South Africa.

List of Top Lithium-ion Battery Recycling Market Companies

Umicore (Belgium)
Li-Cycle (Canada)
Neometals (Australia)
Redwood Materials (USA)
Battery Resourcers (USA)
Retriev Technologies (USA)
Ganfeng Lithium (China)
Ternium (Argentina)
Sims Limited (Australia)
China-based recyclers

Umicore: A leader in battery materials recycling since 2012, Umicore operates multiple facilities in Germany, Belgium, and the U.S., specializing in recovering cobalt, nickel, lithium, and precious metals. In 2024, Umicore processed thousands of tonnes of EV and consumer battery scrap, feeding advanced recycling streams.

Li-Cycle: Canada-based Li‑Cycle employs a proprietary hydrometallurgical process, recovering over 95% of battery metals. By mid‑2024, it had recycled more than 10,000 tonnes per year through its hub-and-spoke network, with two central hubs and four satellite sites, recently expanding into European markets.

Investment Analysis and Opportunities

Funding for battery recycling climbed sharply between 2022 and 2024, totaling over USD 3.5 billion in private equity, venture capital, and government grants. In 2023, U.S. DOE and industry consortiums provided USD 775 million toward domestic recycling facilities, while Asia-Pacific regions contributed similarly sized national incentives. Europe remains focused on regulatory alignments and updating collection infrastructure to meet 65% targets. Key investment avenues include second-use applications: more than 20 GWh of repurposed EV battery systems built by mid-2025, primarily for grid and data center use. On-site recycling co-located with battery assembly plants offer logistical efficiencies and cost reductions. Technological innovation, such as direct recycling processes, has attracted USD 200 million in early-stage funding aimed at improving cost and recovery rates. Opportunities also exist in chemistry-specific recycling—e.g., LiFePO₄—as fleets diversify. Industrial scaling benefits from high metal values: recycled nickel, cobalt, and lithium were valued cumulatively at over USD 4 billion in 2024. Partnerships between recyclers, automakers, and OEMs (e.g., Ford, Volkswagen, Toyota) are emerging to guarantee feedstock and supply loop integration. Despite volatility in metal prices, long-term demand driven by EV growth and regulation offers resilient revenue potential.

New Product Development

Between 2023 and mid-2025, recycling firms launched innovative technologies and expanded production. Li‑Cycle’s hydrometallurgical hubs reached combined 10,000 tonnes annual capacity by 2024, with two EU sites added by early 2025. Redwood Materials began operations of a South Carolina facility in 2024 after receiving USD 2 billion in federal loan support. Umicore introduced advanced modular processing units to handle mixed-chemistry streams at decentralized sites. Battery Resourcers scaled direct recycling pilot lines totaling 50 MWh annual throughput. Novel black‑mass separation methods achieved over 95% recovery of nickel and cobalt. Second-life battery applications also matured: repurposed EV packs were deployed across data centers, microgrids, and utilities, exceeding 20 GWh capacity. These developments demonstrate a concerted shift toward scalable, chemistry-flexible, and vertically integrated recycling solutions.

Five Recent Developments

In mid‑2025, Li‑Cycle opened two new hydrometallurgical facilities in Europe, boosting capacity by 30%.
Redwood Materials processed over 20 GWh of used EV batteries in 2024, supplying 90% of North America’s recycling volume.
Umicore added a dedicated battery recycling plant in U.S. in 2024, expanding its global footprint.
Lime partnered with Redwood in 2025 to recycle e-bike and scooter batteries across the U.S. and Europe, recovering up to 98% of metals.
The EU adopted a 65% portable battery collection target for 2025, turning up the pressure on manufacturers and recyclers.

Report Coverage of Lithium-ion Battery Recycling Market

This report tracks market evolution from 2024 to 2033, highlighting volumes, technology, and investment. Key figures include global recycling revenue reaching USD 12.99 billion in 2025, projected to hit USD 85.69 billion by 2033. Regional distribution highlights Asia-Pacific’s ~45% volume share in 2024, Europe’s 48% collection rate, and North America’s 20 GWh capacity milestone. Battery chemistry analysis shows Li-NMC’s leadership and rising LiFePO₄ share. It details process segmentation—with hydrometallurgy leading at 65%—and application segments: automotive (63%) and electronics (68%). The study covers second-life applications, sustainability metrics, and company profiles, including Li-Cycle’s 10,000‑tonne annual throughput and Umicore’s multi‑facility operations. Regulatory context includes EU targets and U.S. funding initiatives. Technology deployment is spotlighted via new facilities in the U.S. and Europe, and emerging direct-recycle methods. Investment trends are explored, noting USD 3.5 billion in funding between 2022 and 2024. The report concludes by projecting the sector’s trajectory through 2033, emphasizing increasing integration, rising chemistry diversity, and strengthened supply chains for recycled battery materials.

Frequently Asked Questions

What value is the Lithium-ion Battery Recycling Market expected to touch by 2033?

The global Lithium-ion Battery Recycling Market is expected to reach USD 14.35 Million by 2033.

What is CAGR of the Lithium-ion Battery Recycling Market expected to exhibit by 2033?

The Lithium-ion Battery Recycling Market is expected to exhibit a CAGR of 14.29% by 2033.

Which are the top companies operating in the Lithium-ion Battery Recycling Market?

Umicore (Belgium), Li-Cycle (Canada), Neometals (Australia), Redwood Materials (USA), Battery Resourcers (USA), Retriev Technologies (USA), Ganfeng Lithium (China), Ternium (Argentina), Sims Limited (Australia), China National Petroleum Corporation (China) are top companes of Lithium-ion Battery Recycling Market.