Visiongain has published a new report entitled EV Battery Recycling Market Report 2025-2035: Forecasts by Stage (Production Scrap, End-of-Life), by End-use (Energy Storage Systems (ESS), New Battery Manufacturing, Other), by Source (Passenger Vehicles, Commercial Vehicles, Two- & Three-Wheelers, Industrial & Off-Highway Vehicles), by Material Recovered (Metals, Electrolyte, Plastics, Binders and Carbon Black, Other), by Type (Lithium Iron Phosphate (LFP), Lithium Nickel Manganese Cobalt Oxide (NMC), Lithium Nickel Cobalt Aluminium Oxide (NCA), Nickel-Metal Hydride (Ni-MH), Lithium Manganese Oxide (LMO), Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global EV battery recycling market is estimated at US$3,320.3 million in 2025 and is projected to grow at a CAGR of 22.6% during the forecast period 2025-2035.

Investment in Advanced Recycling Technologies

The emergence of new and more efficient recycling technologies offers a lucrative opportunity for companies looking to optimize battery material recovery. Traditional methods such as pyrometallurgy and hydrometallurgy have been widely used, but they come with high energy costs and environmental concerns. Recent advancements in direct recycling, or cathode-to-cathode recycling, provide a more sustainable and cost-effective alternative by preserving battery materials in their original form.

Companies like Li-Cycle and Ascend Elements have made significant breakthroughs in this area. Li-Cycle’s hydrometallurgical process enables the recovery of over 95% of valuable battery materials with minimal emissions. Meanwhile, Ascend Elements’ Hydro-to-Cathode™ process allows for the direct recycling of cathode materials without the need for expensive refining. As these technologies continue to evolve, companies investing in innovative recycling solutions will gain a competitive edge and unlock new revenue streams in the market.

What are the Current Market Drivers?

The Rising Demand for Critical Raw Materials

As the demand for EVs surges, so does the need for essential raw materials such as lithium, cobalt, and nickel. However, the supply of these materials is constrained due to geopolitical risks, limited mining capacity, and increasing costs. Recycling end-of-life EV batteries offers a viable solution to supplement primary raw material sources and reduce dependency on volatile global supply chains. According to the International Energy Agency (IEA), by 2040, recycled materials could supply up to 12% of lithium, 30% of cobalt, and 20% of nickel required for new battery production.

Major automotive and battery manufacturers are investing heavily in recycling infrastructure to secure material supplies. Tesla, for instance, has partnered with companies like Li-Cycle and Redwood Materials to enhance its closed-loop recycling system, ensuring the recovery and reuse of critical metals. Meanwhile, battery giant Northvolt has developed a recycling program called “Revolt,” which aims to use 50% recycled materials in its battery production by 2030. As the demand for EVs continues to grow, efficient recycling of spent batteries will play a crucial role in mitigating supply chain risks and stabilizing raw material costs.

Increasing Corporate Commitments to Sustainability

Sustainability has become a core focus for major automakers and battery manufacturers, leading to greater investment in battery recycling initiatives. Many global companies are setting ambitious targets to reduce carbon emissions and promote circular economy practices within their supply chains.

For instance, Volkswagen has launched its own battery recycling plant in Salzgitter, Germany, with the goal of recovering up to 90% of battery materials for reuse in new cells. Similarly, General Motors has partnered with Lithion Recycling to develop sustainable battery recovery solutions as part of its broader EV sustainability strategy. These corporate commitments are not only driven by regulatory compliance but also by consumer demand for greener and more sustainable products. As more companies integrate recycling into their business models, the market is expected to experience significant growth.

Where are the Market Opportunities?

Development of Regional Recycling Hubs

With the rapid growth of EV adoption across different regions, there is a rising need for localized battery recycling infrastructure to reduce transportation costs and improve material recovery efficiency. Setting up regional recycling hubs in key markets such as North America, Europe, and Asia presents a significant opportunity for companies looking to expand their operations and meet growing demand.

China, for example, has aggressively invested in domestic battery recycling, with leading companies like CATL and GEM Co. establishing dedicated recycling plants to process the increasing volume of retired EV batteries. In the United States, the Department of Energy has committed funding to support domestic recycling initiatives, fostering the growth of companies like American Battery Technology Company (ABTC). Establishing localized recycling hubs not only enhances supply chain resilience but also reduces reliance on raw material imports, providing a strong foundation for long-term market growth.

Second-Life Applications for Used EV Batteries

Beyond recycling, the repurposing of used EV batteries for second-life applications presents an immense opportunity for market expansion. EV batteries that have degraded below vehicle-grade performance levels can still be utilized for energy storage in renewable power grids, commercial applications, and backup power systems.

Companies such as Nissan and Renault are already capitalizing on this opportunity. Nissan’s “xStorage” initiative repurposes used Leaf batteries for residential and commercial energy storage, while Renault’s partnership with The Mobility House has enabled large-scale second-life battery projects for grid stabilization. Additionally, Tesla and Fluence are exploring the use of retired EV batteries in stationary energy storage solutions. The second-life battery market not only extends the lifecycle of battery materials but also supports the transition to sustainable energy by providing cost-effective storage solutions.

Competitive Landscape

The major players operating in the EV battery recycling market are Accurec Recycling Gmbh, American Battery Technology Company, Cirba Solutions, Contemporary Amperex Technology Co., Limited, Ecobat, Fortum, Gem Co., Ltd., Glencore, Li-Cycle Corp., Neometals Ltd., Recyclico Battery Materials Inc., Redwood Materials Inc., Stena Recycling, The International Metals Reclamation Company, Umicore. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.

Notes for Editors

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