Electric vehicle battery recycling involves recovering materials from lithium-ion batteries once used in electric vehicles. The key materials recovered from lithium-ion EV batteries using recycling processes include cobalt, nickel, lithium, and graphite which are then made available for manufacturing new batteries. Electric vehicle sales have increased significantly over the past few years due to growing environmental concerns and stringent emission norms. This has contributed to higher volumes of spent lithium-ion batteries requiring recycling.
The global electric vehicle battery recycling Market is estimated to be valued at Us$ 2.04 Bn In 2023 and is expected to exhibit a CAGR Of 6.3% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The electric vehicle battery recycling market is expected to witness robust growth owing to increasing electric vehicle adoption worldwide. According to the International Energy Agency, the global electric car stock exceeded 10 million in 2020 with nearly 3 million electric cars added that year, up 43% from 2019. Europe and China continued to lead the global electric car demand with China registering about 1.3 million new electric car registrations in 2020 while electric car sales in Europe topped 1 million units. This rapid growth in electric vehicle sales has resulted in growing volumes of spent lithium-ion batteries entering the recycling stream. Moreover, concerns around responsible battery disposal and need for secure supply of critical battery materials is also boosting the electric vehicle battery recycling industry. Recycling spent batteries helps recover materials like cobalt, lithium, nickel and graphite which are key constituents of lithium-ion batteries. The recovered materials are recycled back for production of new batteries, thus reducing dependency on mining activities.
SWOT Analysis
Strength: Electric Vehicle Battery Recycling has several advantages. It helps reduce consumption of raw materials, lowers production costs, and protects the environment by lowering emissions. Recycling batteries also makes better use of scarce resources. The process recovers valuable metals like cobalt, nickel, manganese, and lithium which can then be resupplied to battery and automotive manufacturers.
Weakness: The recycling process requires advanced technologies and equipment to extract useful materials from worn-out batteries. This makes recycling an expensive process. Some battery chemistries are also more difficult to recycle than others. There is also a lack of established collection infrastructure to source spent batteries at large scale.
Opportunity: As EV sales continue to rise globally, so will the volumes of spent batteries reaching their end of life. This ensures a steady supply of raw materials for recyclers. Automakers and battery producers are actively supporting recycling programs to secure secondary supply of battery materials. Growing regulations around waste management also boost opportunities.
Threats: Geopolitical issues around key battery materials like cobalt pose risks. Changes in battery technology towards chemistries that are hard to recycle can reduce viability of recycling plants. Competition from primary material producers using new mining can affect secondary material prices.
Key Takeaways
The Global Electric Vehicle Battery Recycling Market Demand is expected to witness high growth over the forecast period of 2023-2030. The market is projected to grow at a CAGR of 6.3% during this period and reach a market size of US$2.04 billion by 2024.
Regional analysis:
Asia Pacific currently dominates the electric vehicle battery recycling market owing to the presence of leading EV markets like China. China is the largest market for EVs and also has a well-developed battery recycling infrastructure to treat millions of spent units. Europe is another major regional market driven by growing EV adoption and stringent regulations regarding waste battery management and recycling.
Key players operating in the electric vehicle battery recycling market are Synutra Inc., Darling Ingredients Inc., Archer Daniels Midland Company, BASF SE, Koninklijke DSM NV, Foodchem International Corporation, Glanbia PLC, Holista, Colltech Ltd, ESM Technologies LLC, Bergstorm Nutrition Inc., and Gelita AG. Some of the key players in the market are focusing on investing in R&D to develop improved recycling processes to recover high-purity materials from different battery technologies.
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