Visiongain has released its new Battery Recycling & Second-Life Market Report 2026-2036, forecasting that the global market will grow from US$9.91 billion in 2026 to US$41.58 billion by 2036.

The market is forecast to expand at a compound annual growth rate (CAGR) of 15.4% between 2026 and 2036, building from a 15.3% CAGR between 2026 and 2031 to a 15.6% CAGR between 2031 and 2036, as end-of-life EV volumes scale and direct recycling technology matures.

Key Market Growth Drivers & Industry Transformations

The EV battery recycling and second-life industry is evolving from a localised waste-management service into a core strategic supplier of critical energy-transition materials. Visiongain’s research identifies four key catalysts driving market expansion:

• Rise of Direct Recycling: Direct Recycling is the fastest-growing process route at a 16.4% CAGR, reaching US$12.05 billion by 2036, as its cathode-structure-preserving approach gains commercial traction alongside established Hydrometallurgical Recycling, which remains the largest process route in absolute terms (US$19.33 billion by 2036).
• Feedstock Transition Underway: End-of-Life Electric Vehicles are the fastest-growing feedstock source at a 16.2% CAGR (US$17.56 billion by 2036), on track to overtake Battery Manufacturing Scrap, currently the largest single feedstock source (US$17.88 billion by 2036, 14.8% CAGR), shortly after the forecast period ends.
• NMC Chemistry Dominates Recovered Value: Nickel Manganese Cobalt (NMC) battery recycling is growing at a 16.0% CAGR to US$27.77 billion by 2036, reflecting its dominant share of the current end-of-life passenger EV battery pack population and higher per-kilogram recoverable material value.
• Competitive Disruption Reshapes the Field: The bankruptcy and subsequent Glencore acquisition of Li-Cycle Holdings during 2025 has reshaped the competitive landscape, underscoring the capital discipline required to scale hydrometallurgical hub capacity. By contrast, Redwood Materials closed a $350 million Series E in October 2025, and ABTC secured full reinstatement of its $57.7 million DOE grant in June 2026 after a successful appeal, illustrating how well-capitalised operators can navigate policy volatility.

Major Competitive Disruption: Li-Cycle Bankruptcy and Glencore Acquisition

The battery recycling sector experienced a significant competitive shock during 2025. Li-Cycle Holdings, once among the most prominent North American battery recyclers and developer of the flagship Rochester Hub hydrometallurgical facility in New York, filed for Chapter 15 bankruptcy protection in the United States (with equivalent bi-national insolvency proceedings in Canada) in May 2025, after exhausting its liquidity and defaulting on the conditions attached to its US Department of Energy loan. Glencore, previously Li-Cycle’s largest secured creditor, completed an approximately $40 million acquisition of Li-Cycle’s assets on 8 August 2025. The Rochester Hub project remains paused, and most of Li-Cycle’s North American spoke facilities are currently idle; only its Magdeburg, Germany spoke facility continues normal operations.

This episode illustrates the significant capital intensity and execution risk inherent in scaling hydrometallurgical recycling capacity. By contrast, American Battery Technology Company (ABTC) demonstrated a more resilient path through comparable policy headwinds: after its $57.7 million US Department of Energy grant supporting its $115 million Tonopah Flats Lithium Project refinery was terminated in October 2025 as part of a broader federal grant review, ABTC appealed and secured full reinstatement of the grant in June 2026, with no reduction to funds awarded or project milestones.

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Executive Quote

“The battery recycling and second-life industry is evolving from a localised waste-management service into a core strategic supplier of critical energy-transition materials, but the past 18 months have also been a sharp reminder that capital discipline matters as much as underlying demand growth,” stated a Senior Clean Technology Analyst at Visiongain.

“Operators that combine secure feedstock collection with disciplined capital deployment are far better positioned to navigate policy volatility than those pursuing scale without a validated funding runway,” the analyst added.

Scope of the Visiongain Report

The 480+ page report provides robust quantitative and qualitative analysis across all key facets of the global market:

• By Business Model: Battery Recycling; Battery Second-Life Applications.
• By Recycling Process: Hydrometallurgical Recycling; Pyrometallurgical Recycling; Direct Recycling.
• By Battery Chemistry: Lithium Iron Phosphate (LFP); Nickel Manganese Cobalt (NMC); Nickel Cobalt Aluminum (NCA); Other Chemistry.
• By Battery Source: End-of-Life Electric Vehicles; Battery Manufacturing Scrap; Energy Storage Systems (ESS); Consumer Electronics; Other Sources.
• By Recovered Material: Lithium Recovery (Li₂CO₃/LiOH); Nickel Recovery (NiSO₄); Cobalt Recovery (CoSO₄); Graphite Recovery (Anode Grade); Second-Life Battery BESS (Stationary Storage); Other Recovered Materials.
• By Regional & Country Markets: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Competitive Landscape

The competitive environment is characterised by intense competition, with players pursuing capacity expansion, strategic funding rounds, technology partnerships, and diversification into adjacent markets such as grid-scale energy storage manufacturing. Major market participants evaluated in the report include:

• Redwood Materials
• Li-Cycle Holdings (acquired by Glencore, August 2025)
• Umicore
• Ascend Elements
• Ecobat
• Cirba Solutions
• Fortum Battery Recycling
• GEM Co., Ltd.
• SungEel HiTech
• Lohum Cleantech
• Brunp Recycling Technology (CATL Group)
• TES
• Neometals Ltd.
• RecycLiCo Battery Materials Inc.
• American Battery Technology Company (ABTC)

Recent Developments

• 08 Aug 2025 – Glencore completes its acquisition of Li-Cycle Holdings’ assets for approximately $40 million, following Li-Cycle’s May 2025 bankruptcy filing; the Rochester Hub project remains paused, with only the Magdeburg, Germany facility continuing normal operations.
• 23 Oct 2025 – Redwood Materials closes a $350 million Series E funding round, led by Eclipse with participation from NVIDIA’s NVentures, to scale critical-materials recycling and expand into grid-scale energy storage manufacturing.
• 08 Jun 2026 – American Battery Technology Company wins its appeal and secures reinstatement of its $57.7 million DOE grant for its Tonopah Flats Lithium Project, with no reduction to funds awarded or project milestones, after the grant was terminated in October 2025 amid a broader federal review.

Related Reports

EV Battery Systems Market Report 2026-2036

EV Electric Powertrain Market Report 2026-2036

Automotive Power Electronics & Semiconductor Market Report 2026-2036

Electric Vehicles (EV) Market Report 2025-2035

Solid-State Car Battery Market Report 2025-2035

About Visiongain

Established in 1998, Visiongain is an independent publisher of analyst-led market intelligence, delivering data-driven research, forecasts, and strategic insight across global industries and emerging markets. Visiongain supports evidence-based decision-making for investment, procurement, and long-term strategic planning.

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