The global market for EV battery recycling is set to grow at a CAGR of 40.8% between 2024 and 2035, growing from a $570 million to a $24.5 billion industry, according to Vantage Market Research.
‘The global EV battery recycling market is transitioning from niche operations into a critical pillar of the clean energy economy,’ it noted.
The industry’s rapid growth reflects a rising urgency to address end-of-life battery waste as electric vehicle adoption accelerates worldwide. As Vantage Market Research noted, by 2030, more than 200 million EVs are expected to be on the road, globally.
In addition, increased battery recycling also results in critical mineral security, with recycling capable of recovering up to 95% of key materials from batteries, such as lithium, cobalt, nickel, and manganese.
‘A strategic pillar’
“EV battery recycling is no longer just an environmental compliance activity – it is becoming a strategic pillar of the sustainable mobility and energy economy,” commented Nneha Rathod Godbole, founder and CEO at Vantage Market Research.
The Asia Pacific region currently leads the market for EV battery recycling, driven by large-scale EV manufacturing in China, Japan, and South Korea, coupled with strong government recycling mandates.
Europe is the fastest-growing region, however, with strict EU recycling quotas and the European Battery Alliance’s push for closed-loop supply chains acting as an accelerant.
North America is similarly scaling quickly, supported by US Inflation Reduction Act incentives, Department of Energy funding, and partnerships between recyclers and automakers – however the impact that the Trump administration’s policies around electric vehicles will have is yet to be felt.
Technological innovation
Technological advances are also driving a surge in EV battery recycling, the report notes, with recent breakthroughs including Li-Cycle’s hydrometallurgical hubs in North America, Redwood Materials’ expansion in the US, and Umicore’s European mega-recycling facility.
Elsewhere, closed-loop partnerships between OEMs and recyclers (such as Tesla–Redwood, Ford–Li-Cycle, Volkswagen–Umicore) are ‘reshaping’ supply chains.
“The sector has entered a decisive commercialisation phase, unlocking unprecedented opportunities for automakers, energy providers, and investors focused on critical material security,” added Mrudula Shah, lead researcher at Vantage Market Research. Read more here.
