Secondary Battery Recycling Market

Industry Overview

The global Secondary Battery Recycling Market size is valued at USD 269.17 billion in 2024, and is projected to grow by USD 315.55 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 698.66 billion by 2030, with a CAGR of 17.2% from 2025 to 2030.

The market plays a critical role in the transition to a circular economy and the sustainable electrification of transport, energy, and consumer electronics. As demand for these batteries accelerates, so too does the volume of spent batteries that require responsible end-of-life management. 

The recycling of secondary batteries is essential for recovering valuable materials such as lithium, cobalt, nickel, and manganese, reducing the environmental impact of battery disposal, and mitigating reliance on raw material extraction. With global supply chain concerns and geopolitical tensions affecting the availability and cost of critical minerals, battery recycling has become a strategic imperative for many governments and corporations.

With the convergence of environmental regulations, technological innovation, and booming battery demand, the secondary battery recycling market is emerging as a linchpin in the global clean energy ecosystem, driving economic value while reducing ecological harm.

Surging Demand for Electric Vehicles and Energy Storage Systems is Driving Market Growth

The rapid adoption of electric vehicles and the expansion of renewable energy storage solutions are significantly increasing the demand for secondary battery recycling. As EVs become more prevalent, the need to recycle used batteries to recover valuable materials like lithium, cobalt, and nickel becomes critical.

In 2024, global electric vehicle sales surpassed 17 million units, marking a year-on-year growth of approximately 25% and pushing EVs to account for over 20% of all new car sales worldwide. China alone contributed around 11 million units, representing nearly 60% of the global total and reaffirming its dominance in the EV sector.

As more EV batteries reach end-of-life and grid-scale systems age, the volume of spent lithium-ion cells is set to rise sharply after 2035, making recycling an essential source of critical minerals. According to the IEA, scaling up recycling could supply 20–30 % of global lithium, nickel and cobalt demand by 2050.

Supportive Government Policies and Sustainability-Focused Incentives are Emerging as Key Market Trends

Governments worldwide are implementing policies and incentives to promote battery recycling as part of broader sustainability and environmental protection goals. The U.S. Department of Energy announced a USD 14 million initiative to fund over 1,000 consumer battery collection sites, enhancing the recycling of batteries from phones, computers, and other electronics.

In Europe, the European Union has mandated that industrial batteries must include minimum shares of recycled lithium, nickel, and cobalt by 2031, aiming to reduce dependence on imports and promote a circular economy. These policies are expected to drive the growth of the battery recycling market by creating a more favorable regulatory environment and encouraging investment in recycling infrastructure.

Technological Advancements in Recycling Processes are Accelerating Market Expansion

Advancements in recycling technologies are making battery recycling more efficient and cost-effective, thereby driving market growth. Innovations in hydrometallurgical and pyrometallurgical processes have improved the recovery rates of valuable metals from used batteries.

Companies like Ascend Elements are constructing new facilities to recycle used EV batteries and manufacturing scrap, providing materials for the production of new batteries. Their facility in Kentucky, scheduled to start operations by January 2025, will recycle 24,000 metric tons of used EV batteries annually. These technological advancements are crucial for improving the economics of battery recycling and meeting the growing demand for recycled materials.

Economic Viability of Recycling Processes Poses as a Key Challenge

Despite strong momentum driven by environmental regulations and rising demand for critical minerals, the economic viability of large-scale battery recycling remains a key challenge in the secondary battery recycling market expansion. High costs associated with collection, transportation, and processing often outweigh the revenue from recovered materials, particularly during periods of low commodity prices. The profitability of recycling varies by battery chemistry, with cobalt- and nickel-rich types offering better returns than lower-value chemistries like LFP.

Smaller operations face cost disadvantages due to lack of scale, and regional disparities in infrastructure and regulatory support further complicate economics.  Additionally, the complexity and cost of extracting materials from recycled batteries pose challenges, especially when mineral prices are low, potentially leading to negative profit margins. 

Expansion of Recycling Infrastructure in Emerging Markets Presents a Significant Opportunity

There is a significant opportunity for growth in expanding battery recycling infrastructure in emerging markets, where EV adoption and energy storage needs are rapidly increasing. Countries across the Asia-Pacific region are seeing a surge in demand for sustainable battery disposal and material recovery solutions, driven by rising energy needs and supportive government policies.

Investing in recycling facilities and advanced processing technologies in these markets not only helps meet the increasing demand for critical battery materials but also supports circular economy initiatives and environmental sustainability. As governments and private players intensify efforts to build robust recycling ecosystems, emerging markets are well-positioned to become key contributors to the global secondary battery supply chain.

Market Segmentations and Scope of the Study

The secondary battery recycling market report is segmented on the basis of battery type, source of battery, processing pathway, material output, business model, application, and region. On the basis of battery type, the market is segmented into lead acid, lithium ion, nickel based, and others. The lead acid segment is further divided into SLI batteries, deep cycle batteries, and valve regulated lead acid batteries. The lithium ion segment is further classified into lithium iron phosphate (LFP), lithium cobalt oxide (LCO), nickel manganese cobalt oxide (NMC), nickel cobalt aluminum oxide (NCA), lithium manganese oxide (LMO), lithium titanate oxide (LTO), and lithium polymer. The nickel based segment is further categorized into nickel cadmium and nickel metal hydride.

On the basis of source of battery, the market is divided into automotive, consumer electronics, industrial, and others. The automotive segment is further bifurcated into electric vehicles (EVs) and conventional vehicles. The consumer electronics segment is further classified into smartphones and tablets, laptops and PCs, and power tools and small appliances. The industrial segment is further categorized into energy storage systems (ESS), uninterruptible power supplies (UPS), and industrial equipment.

On the basis of processing pathway, the market is classified into second life repurposing and recycling & material recovery. The second life repurposing segment is further segmented into grid energy storage, commercial energy storage, residential energy storage, and low speed electric vehicles. The recycling & material recovery segment is further divided into pyrometallurgical, hydrometallurgical, physical mechanical, and direct recycling.

On the basis of material output, the market is segmented into metals and non-metallic components. The metals segment is further classified into cobalt, nickel, lithium, manganese, copper, aluminum, and lead. The non-metallic components segment is further categorized into plastics, electrolytes, and other materials.

On the basis of business model, the market is divided into pure play recyclers, battery OEM & tier 1 verticals, integrated metal & mining companies, and others. On the basis of application, the market is classified into new battery manufacturing, non-battery industries, and other applications. The non-battery industries segment is further segmented into steel production, electronics manufacturing, and chemical industry. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

In North America, secondary battery recycling has become a cornerstone of the clean-energy transition, with the region capturing more than 40% of global market revenue through a combination of advanced hydrometallurgical processes and supportive policy incentives. 

North America’s secondary battery recycling market share is underpinned by landmark legislation such as the U.S. Inflation Reduction Act. Industry leader Redwood Materials already processes over 70% of North America’s lithium-ion waste and aims to produce 100 GWh of cathode active material annually by 2026, further localizing critical-mineral supply chains. 

Also, North American recyclers fulfill over 90% of regional lead demand, underscoring the maturity and scale of domestic recycling infrastructure. At the same time, lithium-ion cell production capacity is rising from around 114 GWh in 2024 to projections over 1,300 GWh by 2030 creating a robust feedstock pipeline for recycling facilities. Together, these elements position North America as a leader in recycling infrastructure and policy-driven circularity in the global secondary battery industry.
Europe’s recycling landscape is driven by strict circular economy directives and upcoming recycled-content mandates, which will require minimum levels of lithium, nickel, and cobalt by 2031. However, elevated energy costs have slowed the pace of capacity expansion. While more than thirty recovery projects have been announced, Europe may still struggle to meet the recycling demand projected to support two million EVs by 2030. Though the region is heavily focused on regulatory reform and scaling efforts, economic and operational challenges continue to hinder its full realization of leadership in the space.

The Asia-Pacific region’s impressive expansion is fueled by proactive government schemes that champion sustainable transport, a well-established manufacturing base, and soaring electric-vehicle uptake. This momentum is further bolstered by seamless supply chains that efficiently gather and process spent batteries, alongside collaborative public–private ventures financing cutting-edge recycling technology.

With abundant local raw materials and regulatory frameworks that emphasize reuse, capacity can scale swiftly and innovations flourish. China’s pivotal role, operating about 65% of the world’s public chargers and 60% of its electric light-vehicle fleet, illustrates the depth of its EV network, ensuring spent cells flow effortlessly to recycling plants. Its contribution of 80% of new fast chargers in 2024 highlights how rapidly it can build supporting infrastructure, smoothing the path for secondary-battery recovery.

By contrast, Latin America and the RoW battery recycling markets remain in a nascent stage, but recent developments show rapid momentum. By the end of 2024, the light EV fleet in Latin America and the Caribbean had surged nearly threefold from around 249,000 to 444,071 vehicles, marking an astonishing 187% year-on-year growth, and in 2024 EV sales across the region rose 60% overall. Also, Colombia notched a standout 150% increase in EV sales between 2023 and 2024, yet startups struggle with low battery recovery due to limited logistics and transport infrastructure.

Meanwhile, the Inter-American Development Bank’s 2024 report highlights a policy gap, although Latin America holds 67% of the world’s lithium reserves, regulatory frameworks and formal collection systems are just emerging, even now, many countries lack Extended Producer Responsibility laws focused on battery waste. Together, these indicators paint a region in its infancy, yet swiftly constructing the policy, supply chain, and market foundations needed to support scalable battery recycling.

These regional dynamics reveal a clear pattern, mature markets leverage policy and capital to optimize existing infrastructure, while fast-growing regions like Asia-Pacific and Latin America are leap-frogging with aggressive capacity build-out and favorable regulation underscoring a global shift toward a truly circular battery economy.

Strategic Analysis of Companies in the Secondary Battery Recycling Industry

Between 2024 and 2025, the global market has witnessed significant strategic movements by leading companies, each aiming to enhance their market share, brand visibility, and long-term growth potential through innovation, regional expansion, and strategic partnerships.

• In June 2025, Redwood Materials, Inc. launched Redwood Energy, deploying second-life EV batteries for a 12 MW/63 MWh AI data-center project with Crusoe Power. The AI-powered microgrid project demonstrated the growing commercial viability of repurposed EV batteries for stationary energy storage applications, strengthening confidence in second-life battery ecosystems and accelerating the global adoption of circular battery supply chains.

• In May 2025, UMICORE expanded its battery recycling and cathode material recovery operations in Europe to support rising EV battery demand and regional critical mineral supply security initiatives. The company focused on strengthening closed-loop battery material recovery capabilities, particularly for cobalt, nickel, and lithium used in next-generation electric vehicle batteries.

• In April 2025, Glencore plc strengthened its strategic investments in battery recycling infrastructure and critical mineral recovery operations to enhance sustainable sourcing of battery-grade raw materials. The company focused on expanding recycling partnerships and improving circular supply chain capabilities for electric vehicle and energy storage battery applications.

• In March 2025, Fortum Battery Recycling Oy was awarded approximately USD 91.9 million in funding support from Business Finland to expand its hydrometallurgical lithium-ion battery recycling facility in Harjavalta, Finland. The expansion is expected to improve battery-grade lithium, cobalt, and nickel recovery efficiency while supporting Nordic and European battery raw material self-sufficiency goals.

• In February 2025, Cirba Solutions, LLC announced the expansion of its lithium-ion battery processing capabilities across North America to address growing battery recycling demand from electric vehicle manufacturers and energy storage providers. The company focused on increasing processing efficiency, material recovery rates, and domestic battery recycling infrastructure capacity.

Secondary Battery Recycling Market Key Segments

By Battery Type

• Lead Acid

  • SLI Batteries

  • Deep Cycle Batteries

  • Valve Regulated Lead Acid Batteries

• Lithium Ion

  • Lithium Iron Phosphate (LFP)

  • Lithium Cobalt Oxide (LCO)

    • Nickel Manganese Cobalt Oxide (NMC)

    • Nickel Cobalt Aluminum Oxide (NCA)

  • Lithium Manganese Oxide (LMO)

  • Lithium Titanate Oxide (LTO)

  • Lithium Polymer

• Nickel Based

  • Nickel Cadmium

  • Nickel Metal Hydride

• Others

  • Alkaline

  • Sodium Based

  • Zinc Carbon

By Source of Battery

• Automotive

  • Electric Vehicles (EVs)

  • Conventional Vehicles

• Consumer Electronics

  • Smartphones and Tablets

  • Laptops and PCs

  • Power Tools and Small Appliances

• Industrial

  • Energy Storage Systems (ESS)

  • Uninterruptible Power Supplies (UPS)

  • Industrial Equipment

• Others

  • Medical Devices

  • Aerospace

  • Marine

By Processing Pathway

• Second Life Repurposing

  • Grid Energy Storage

  • Commercial Energy Storage

  • Residential Energy Storage

  • Low Speed Electric Vehicles

• Recycling and Material Recovery

  • Pyrometallurgical

  • Hydrometallurgical

  • Physical Mechanical

  • Direct Recycling

By Material Output

• Metals

  • Cobalt

  • Nickel

  • Lithium

  • Manganese

  • Copper

  • Aluminum

  • Lead

• Non Metallic Components

  • Plastics

  • Electrolytes

  • Other Materials

By Business Model

• Pure Play Recyclers

• Battery OEM & Tier 1 Verticals

• Integrated Metal & Mining Companies

• Others

By Application

• New Battery Manufacturing

• Non Battery Industries

  • Steel Production

  • Electronics Manufacturing

  • Chemical Industry

• Other Applications

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands 

  • Finland

  • Sweden

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Middle East

  • Africa

  • Latin America

Key Players

• Redwood Materials, Inc.

• UMICORE, NV/SA

• Glencore plc

• Ecobat Technologies Limited (representative group entity)

• Fortum Battery Recycling Oy

• Cirba Solutions, LLC

• GEM Co., Ltd.

• TES-AMM (Singapore) Pte Ltd (operating as SK tes)

• Hydrovolt AS

• SungEel HiTech Co., Ltd.

• SNAM Société Nouvelle d’Affinage des Métaux

• Stena Recycling AB

• ACE Green Recycling, Inc.

• Lithion Technologies Inc.

• American Battery Technology Company

Report Scope and Segmentation: