Visiongain has published a new report entitled Battery Recycling & Second-Life Battery Market Report 2025–2035 (Including Impact of U.S. Trade Tariffs): Forecasts by Collection Channel (Automotive OEM Networks, Third-Party Collection Specialists), by Business Model (OEM-led Closed-Loop Programs, Recyclers & Secondary Material Supplier, Battery-as-a-Service (BaaS)), by Application (Energy Storage Systems (ESS), Grid Balancing & Peak Shaving, Backup Power Systems, Other), by Battery Chemistry (Lithium-Ion Batteries, Nickel-Cadmium (NiCd) Batteries, Lead-Acid Batteries, Solid-State Batteries, Other), by Process Technology (Pyrometallurgical Recycling (Smelting), Hydrometallurgical Recycling (Leaching), Direct Recycling/Cathode-to-Cathode, Hybrid Recycling Processes, Mechanical/Physical Processing, Other), AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global battery recycling & second-life battery market is estimated at US$3,598.4 million in 2025 and is projected to grow at a CAGR of 20.1% during the forecast period 2025-2035.

Impact of US Trade Tariffs on the Global Battery Recycling & Second-Life Battery Market   

The introduction of U.S. tariffs under recent trade policies has significantly reshaped the global dynamics of the battery recycling and second-life battery market. These tariffs, targeting imports of electric vehicles (EVs), lithium-ion batteries, and critical raw materials such as lithium, nickel, and cobalt—primarily from China—have created both challenges and opportunities across the global value chain. On one hand, the tariffs increase production costs for U.S.-based manufacturers reliant on imported components, potentially slowing domestic recycling infrastructure expansion. On the other hand, they have spurred investments in localized recycling and material recovery plants as the United States seeks to reduce dependency on foreign supply chains. Countries like South Korea, Japan, and members of the European Union are also adjusting their export and manufacturing strategies in response, diversifying trade partnerships and accelerating domestic processing capabilities. Overall, the tariffs act as a catalyst for regionalization and technological innovation in recycling processes but introduce short-term disruptions in material flow and profitability across global markets.

U.S. Incentives And The “Battery Belt” Manufacturing Build-Out

In the United States, IRA-era incentives—production credits, domestic-content bonuses, and clean-energy tax rules—are catalyzing a domestic circular supply chain from black mass to CAM/pCAM. Companies like Ascend Elements, Cirba Solutions, Li-Cycle, and Redwood Materials anchor that build-out with projects across Kentucky, South Carolina, Ohio, and Nevada, supported by DOE grants and Treasury guidance that rewards domestic manufacturing and, in some cases, recycling content in the supply stack. Award negotiations and site investments announced through 2024–2025 signal a durable policy tailwind for capacity additions and feedstock contracting with OEMs and pack makers. (ABI Research)

Automaker partnerships are locking in offtake and process integration. Redwood’s agreements with Toyota cover both end-of-life battery collection and supply of anode copper foil and cathode active materials derived from recycled feedstock, and Redwood’s East-Coast expansion complements its Nevada complex. As these “closed-loop” arrangements proliferate, recycled materials stop being opportunistic inputs and start acting like baseload, improving bankability for new refining and precursor capacity and reducing import dependence risks for nickel, cobalt, lithium, and graphite.

How will this Report Benefit you?

Visiongain’s 415-page report provides 125 tables and 198 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the battery recycling & second-life battery market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for battery recycling & second-life battery. Get financial analysis of the overall market and different segments including collection channel, business model, application, battery chemistry, and process technology, and capture higher market share. We believe that there are strong opportunities in this fast-growing battery recycling & second-life battery market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Scale and industrial learning from EU, U.S., and Asia recycling leaders

European and Nordic players are demonstrating integrated flowsheets at commercial scale. Northvolt’s Revolt program and partners like Fortum/Hydrovolt are running full chains from pack disassembly through black-mass production to hydrometallurgical recovery of NMC metals, with public reporting on carbon-footprint advantages and fresh public funding for capacity expansion in 2025. These operating references shorten diligence cycles for lenders and OEMs and help standardize yield, impurity, and by-product assumptions across contracts.

In Asia, CATL’s Brunp unit and Korea’s POSCO ecosystem are scaling recycling and precursor manufacturing in ways that close the loop back into cell production. POSCO HY Clean Metal’s plant in Korea processes black mass into nickel, cobalt, and lithium products, while POSCO Future M’s precursor complex at Gwangyang strengthens in-house conversion capacity; CATL/Brunp continues to expand recycling as part of a “production-use-cascade-recycle” loop and is exploring European localizations. This clustering of recycling with CAM/pCAM output improves working capital cycles and reduces logistics costs—key to surviving commodity downcycles. (Korea Joongang Daily)

Second-life batteries moving from pilots to utility-scale adjacencies

Second-life programs increasingly sit alongside OEM energy businesses instead of one-off demos. Renault’s Advanced Battery Storage has progressed multi-site deployments in France using repurposed EV packs to provide grid services, and Volkswagen’s Elli entered the BESS market in 2024 with 350 MW/700 MWh-class projects and a roadmap to incorporate retired EV batteries as supply matures. These models align engineering, warranty, and software under the OEM umbrella and open routes to monetize residual pack value before final recycling, improving lifetime economics.

Early second-life pioneers like Nissan’s 4R Energy laid the groundwork with commercial installations that proved safety and performance in stationary applications. As EV penetration swells and the first big cohorts of traction batteries reach 70–80% state-of-health, there is a structural influx of candidates for reuse in C&I storage, back-up, and microgrids—especially for LFP packs whose cycle life and safety attributes are favorable. The presence of OEM-linked storage brands, grid-service marketplaces, and battery passports makes validating and monetizing these assets far more straightforward than in the last cycle.

Where are the Market Opportunities?

OEM-Anchored Closed Loops With CAM/Pcam Integration

The most durable margins are emerging where recyclers tie directly into precursor and cathode lines under multi-year OEM contracts. Toyota–Redwood’s arrangement to source anode copper foil and cathode active materials from recycled feedstock exemplifies the model; it shortens cash cycles, reduces ESG exposure, and creates stable utilization for refining assets. In Europe, Northvolt/REvolt and Fortum/Hydrovolt collaborations serve the same logic, pairing recycling with nearby CAM and cell lines to monetize both compliance and cost advantages.

Korea’s POSCO cluster adds a third template: co-locating black-mass refining, nickel sulfate, precursor production, and cell materials, now bolstered by the completed Gwangyang precursor plant and the HY Clean Metal recycling stream. Investors can underwrite these “materials parks” with higher confidence because every tonne of recovered metal has a captive sink—and because policy in the EU and U.S. increasingly rewards documented recycled content in battery supply chains.

Battery Passports And Traceability Software As Value Unlocks

With the EU’s digital battery passport coming into force for EV and industrial batteries in 2027, software that captures state-of-health, carbon footprint, and recycled content becomes a revenue enabler. Volvo’s early passport deployment shows OEMs will use transparency not only for compliance but also to support residual-value pricing, service plans, and second-life qualification. Tooling from groups like Catena-X and the Battery Pass consortium is maturing quickly, offering interoperable data rails that reduce transaction costs for re-purposers and recyclers and that help financiers underwrite second-life assets with confidence.

Passport-driven audit trails should also accelerate “pay-for-performance” contracts, where recovered-material premia or second-life warranties are indexed to verified provenance and health data. That structure aligns incentives across the chain—OEMs, fleet owners, re-purposers, and recyclers—and will likely become a gating criterion for access to certain subsidies and low-cost capital in Europe.

Competitive Landscape

The major players operating in the battery recycling & second-life battery market are Accurec Recycling Gmbh, American Battery Technology Company (ABTC), Cirba Solutions, Ecobat, Fortum, Gem Co., Ltd., Glencore, Lithion Technologies, Neometals Ltd., Nupur Recyclers Limited., Recyclico Battery Materials Inc., Redwood Materials, Rio Tinto Group, Stena Recycling, Umicore, These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.

Recent Developments

• 01-Oct-25, The partnership enables ABTC to broaden its services beyond commercial clients, incorporating direct consumer participation. ABTC uses its proprietary closed-loop recycling technology to extract materials with minimal environmental impact. CEO Ryan Melsert calls it a “pivotal moment” for extending their recycling technologies nationwide.
• 15-Aug-25, GEM, China’s largest supplier of battery raw materials and the country’s leading battery recycler, has announced a partnership with a US company to jointly build a lithium power battery recycling chain in Europe. GEM and Ascend Elements will establish a full recycling chain in Europe for the dismantling of lithium batteries, extraction of lithium, nickel, and cobalt compounds, recovery of black mass, and manufacturing of new battery materials, the Shenzhen-based firm announced.
• 07-Aug-25, Rio Tinto approved a US$180 million investment to develop the Norman Creek region at the Amrun bauxite mine on Cape York Peninsula, holding about half of Amrun’s 978 Mt ore reserves. Construction includes a 19 km haul road, camp, and communications tower. First production in 2027; full completion by 2028.
• 24-Jul-25, Rio Tinto and Chile’s state-owned ENAMI signed a binding agreement to jointly develop the Salares Altoandinos lithium project. Rio Tinto to acquire 51% stake and invest up to US$425 million including Direct Lithium Extraction (DLE) technology. Transaction expected to close in 1H 2026.
• 16-Jul-25, Signed a non-binding MoU with GM to accelerate energy storage deployment using both new U.S.-built GM batteries and second-life EV battery packs. Builds on their existing partnership.
• 03-Apr-25, Ecobat commissioned three new lithium-ion battery recycling facilities within 12 months — located in Hettstedt (Germany), Casa Grande (Arizona), and Darlaston (England). Combined, they process up to 10,000 tons annually, with plans to scale to 25,000 tons, reinforcing Ecobat’s role in the global circular battery economy.

Notes for Editors

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