The global electric vehicle battery recycling market was worth $25.37 billion in 2025, and is set to grow to $87.7 billion by 2032, representing a compound annual growth rate of 19.38%.
According to Research and Markets, the market for EV battery recycling is accelerating amidst changes to industry and regulatory trends, with firms viewing battery recycling as key to ‘supply chain resilience, emissions compliance, and sustainable value creation in electrified mobility’, the report noted.
In 2026, the EV battery recycling market is set to be worth $29.86 billion, it added.
Driving factors
Growth in the EV battery recycling market is being propelled by ‘intensified demand for recovered battery materials, the rapid electrification of mobility, evolving regulatory landscapes, and commercial imperatives to establish secure, low-emission supply chains that underpin broad-based EV deployment,’ the report noted.
Stakeholders across the EV value chain are adapting their business models to avail of new opportunities from material recovery, with OEMs, recyclers and policy makers aligning on standardised protocols for battery collection, processing, and material reintegration.
In addition, digital traceability systems and design for recycling practices are also being integrated to manage material flows and compliance requirements.
Commercial opportunities
As the report notes, lithium-ion, lead-acid, and nickel-metal hydride batteries each require specialised recovery processes, presenting ‘distinct commercial opportunities’ for material reuse and circularity, with end-of-life batteries and production scrap serving as primary feedstocks for the sector.
Advances in hydrometallurgical, pyrometallurgical, and direct recycling technologies are helping to refine industry best practices and advancing closed-loop material use, Research and Markets added, with automakers, refiners, and recyclers adapting their traditional recovery models to promote integrated value recovery and regulatory compliance.
‘Electric vehicle battery recycling is foundational for sustainable growth and security in electrified transport,’ the report noted. ‘Coordinated strategies and stakeholder partnerships are key to realising both environmental benefits and commercial value from circular material flows.’ Read more here.
