1 Global Lithium-ion Battery Recycling Market Size (Revenue) and CAGR (2024-2033)
Global Lithium-ion Battery Recycling market generated revenue of USD 10867.81 Million in 2024 with a CAGR of 25.99% during 2024 to 2033.
The current situation of the Lithium-ion Battery Recycling market is characterized by significant growth and expansion. The market value in 2024 reached 10,867.81 million US dollars, indicating a robust and thriving industry. This growth can be attributed to several factors, including the increasing demand for lithium-ion batteries in various applications such as automotive, industrial, and electric power sectors. The market is also driven by the need to recycle and reuse valuable materials from spent batteries, reducing environmental impact and ensuring a sustainable supply chain.
The high CAGR of 25.99% from 2024 to 2033 further underscores the market’s potential for continued expansion. This growth rate suggests that the market is not only stable but also experiencing a rapid increase in value, which is likely due to technological advancements, increased awareness of environmental issues, and supportive government policies.
In conclusion, the Lithium-ion Battery Recycling market is currently in a phase of strong growth, with significant potential for further expansion in the coming years. The high CAGR indicates a healthy and dynamic market environment, driven by both economic and environmental factors.
Figure Global Lithium-ion Battery Recycling Market Size (M USD) Outlook (2024-2033)
2 Lithium-ion Battery Recycling Market SWOT Analysis
Table SWOT Analysis
SWOT | Description |
Strength | Lithium battery recycling has excellent economic benefits. Lithium battery recycling and reuse can form a good ecological chain cycle of “battery production-battery utilization-battery recycling-battery production”. As the scale of lithium battery recycling and processing continues to grow and battery costs remain high, the economic benefits of recycling and processing have become prominent. Used lithium batteries will become an important source of raw materials in the fields of lithium battery materials and energy storage batteries, and the demand for recycling and processing will steadily increase. Lithium battery recycling has environmental benefits The materials in waste lithium batteries are composed of many metals and chemical substances. If they are not properly handled, they will have a negative impact on the ecological environment and human health. With the increasing number of waste lithium batteries, in order to build a healthy ecological environment, lithium batteries are the necessity of recycling is highlighted. Lithium batteries are composed of metal and chemical substances such as metal-containing cathode materials, carbon-containing anode materials, metal-containing, and fluorine-containing electrolytes, polymer-containing electrolyte solvents, and diaphragms. If the used lithium battery is not properly recycled and treated, it will easily lead to the leakage of the metal and chemical substances in the battery, exposure to the external environment, and chemical reaction with the environment, causing heavy metal pollution, acid-base pollution, dust pollution, and other environmental hazards and human organ damage. |
Weakness | The effective recycling and processing volume of used lithium batteries is much lower than the scrap volume. As the lithium battery recycling network is not yet complete, the recycling participants include many small companies that lack specialized recycling and processing capabilities. The effective recycling and processing volume of used lithium batteries is much lower than the scrap volume. This has led to a low rate of acquisition of waste lithium batteries by professional recycling and processing companies, which restricts the healthy development of the industry. |
Opportunities | Car power lithium batteries are about to enter the stage of large-scale replacement. In the past five years, the global new energy automobile industry has developed rapidly. Among them, the growth rate of pure electric vehicles is the most obvious, and the demand for power lithium batteries has grown rapidly. As the life of power lithium batteries decreases, the demand for battery replacement will increase significantly, and the number of used power lithium batteries will increase significantly and flow into the recycling market. |
Threat | The initial investment cost of lithium battery recovery is high, and environmental protection measures need to be strictly implemented. The lithium battery recycling project involves the classified collection and sorting of waste lithium batteries, pretreatment, and processing. The overall investment is relatively large, and the investment return period is relatively long. Strict environmental protection measures need to be taken in the entire process. If the lithium battery is damaged or leaked during the process of sorting, collecting, transporting and dismantling, it will cause greater pollution to the environment. All these require a certain degree of technology accumulation and capital investment. |
3 Global Lithium-ion Battery Recycling Market by Type in 2024
The global Lithium-ion Battery Recycling market is segmented into various product types, each with distinct characteristics and market dynamics. In 2024, the market was dominated by LiFePO4 batteries, which held the largest market share, while NMC batteries exhibited the fastest growth rate.
LiCoO2 Battery
LiCoO2 batteries, also known as lithium cobalt oxide batteries, are widely used in consumer electronics such as mobile phones, laptops, and digital cameras. These batteries are characterized by their high specific energy, which makes them ideal for portable devices. However, they have a relatively short lifespan, low thermal stability, and limited load capabilities. In 2024, the market value for LiCoO2 batteries was 1,088.66 million US dollars, accounting for approximately 10.02% of the total market share. The growth rate for LiCoO2 batteries was steady but not as rapid as other types, reflecting their mature market status and the challenges associated with their limitations.
NMC Battery
NMC batteries, or lithium nickel manganese cobalt oxide batteries, are known for their balance between energy density and power output. They are commonly used in power tools and electric vehicles. NMC batteries can offer either high specific energy or high specific power, but not both simultaneously. In 2024, the market value for NMC batteries was 2,701.90 million US dollars, representing 24.86% of the total market share. Notably, NMC batteries had the fastest growth rate among all types, driven by the increasing demand for electric vehicles and the need for high-performance batteries. The growth rate of 33.42% from 2020 to 2033 highlights the significant expansion of this segment.
LiFePO4 Battery
LiFePO4 batteries, or lithium iron phosphate batteries, are valued for their safety, long cycle life, and thermal stability. They are widely used in applications requiring high safety standards, such as electric vehicles and energy storage systems. Despite having a lower energy density compared to LiCoO2 and NMC batteries, LiFePO4 batteries offer superior safety and durability. In 2024, the market value for LiFePO4 batteries was 5,781.97 million US dollars, accounting for 53.20% of the total market share. This dominant position is attributed to the growing demand for safe and reliable energy storage solutions. The growth rate of 29.22% from 2020 to 2033 indicates a strong and consistent expansion of this segment.
Table Global Lithium-ion Battery Recycling Market Size and Share by Type in 2024
Type | Revenue (M USD) | Market Share (%) |
|---|---|---|
LiCoO2 Battery | 1,088.66 | 10.02 |
NMC Battery | 2,701.90 | 24.86 |
LiFePO4 Battery | 5,781.97 | 53.20 |
Other | 1,295.29 | 11.92 |
Total | 10,867.81 | 100.00 |
4 Global Lithium-ion Battery Recycling Market by Application in 2024
The Lithium-ion Battery Recycling market serves a variety of applications, each with unique requirements and market dynamics. In 2024, the automotive sector held the largest market share, while the automotive application also exhibited the fastest growth rate.
Automotive
The automotive sector is the primary driver of the Lithium-ion Battery Recycling market. With the rapid growth of the electric vehicle (EV) market, the demand for lithium-ion batteries has surged, leading to a corresponding increase in the need for recycling. Recycled materials from these batteries are crucial for the sustainable production of new batteries, reducing the reliance on virgin materials. In 2024, the market value for the automotive application was 5,462.32 million US dollars, accounting for 50.26% of the total market share. The growth rate of 30.30% from 2020 to 2033 highlights the significant expansion of this segment, driven by the global shift towards electric mobility.
Marine
The marine sector, although smaller in comparison to the automotive sector, is also a significant user of lithium-ion batteries. These batteries are used in various marine applications, including electric boats and auxiliary power systems. The demand for high-performance and reliable batteries in marine environments has led to a steady growth in this segment. In 2024, the market value for the marine application was 687.80 million US dollars, representing 6.33% of the total market share. The growth rate of 27.04% from 2020 to 2033 indicates a robust expansion, driven by the increasing adoption of electric marine vessels.
Industrial
The industrial sector uses lithium-ion batteries in a range of applications, from backup power systems to robotics and automation. The demand for reliable and efficient power solutions in industrial settings has driven the growth of this segment. In 2024, the market value for the industrial application was 1,921.17 million US dollars, accounting for 17.68% of the total market share. The growth rate of 26.21% from 2020 to 2033 reflects the ongoing industrialization and the need for advanced power solutions.
Electric Power
The electric power sector is another significant user of lithium-ion batteries, particularly for energy storage systems. These systems are crucial for grid stability and the integration of renewable energy sources. The demand for efficient and scalable energy storage solutions has led to a rapid growth in this segment. In 2024, the market value for the electric power application was 1,841.49 million US dollars, representing 16.94% of the total market share. The growth rate of 33.11% from 2020 to 2033 highlights the significant expansion of this segment, driven by the global transition to renewable energy.
Table Global Lithium-ion Battery Recycling Market Size and Share by Application in 2024
Application | Revenue (M USD) | Market Share (%) |
|---|---|---|
Automotive | 5,462.32 | 50.26 |
Marine | 687.80 | 6.33 |
Industrial | 1,921.17 | 17.68 |
Electric Power | 1,841.49 | 16.94 |
Other | 955.04 | 8.79 |
Total | 10,867.81 | 100.00 |
5 Global Lithium-ion Battery Recycling Market by Region in 2024
The global Lithium-ion Battery Recycling market in 2024 was marked by significant regional disparities in terms of market size and growth rates. The Asia-Pacific region emerged as the largest market by revenue, while the Middle East and Africa region exhibited the fastest growth rate.
Asia-Pacific Region
The Asia-Pacific region, led by countries such as China, Japan, and South Korea, accounted for the largest share of the global Lithium-ion Battery Recycling market in 2024. The market value for this region was 8,404.52 million US dollars, representing 77.31% of the total global market share. This dominant position can be attributed to the region’s robust manufacturing base, particularly in the production of lithium-ion batteries for consumer electronics and electric vehicles. Additionally, the region’s strong emphasis on environmental sustainability and the recycling of valuable materials has driven the growth of the recycling industry. The growth rate of 29.22% from 2020 to 2033 highlights the region’s continued expansion, driven by both economic and environmental factors.
Europe Region
Europe, with its stringent environmental regulations and advanced recycling technologies, held a significant share of the global market. In 2024, the market value for Europe was 1,646.02 million US dollars, accounting for 15.15% of the total global market share. The region’s focus on reducing electronic waste and promoting circular economy initiatives has been a key driver for the growth of the lithium-ion battery recycling market. The growth rate of 27.08% from 2020 to 2033 indicates a steady and consistent expansion, reflecting the region’s commitment to sustainable practices.
North America Region
North America, led by the United States and Canada, had a market value of 567.27 million US dollars in 2024, representing 5.23% of the total global market share. The region’s market is driven by the growing demand for electric vehicles and the need to recycle batteries to recover valuable materials. The growth rate of 25.99% from 2020 to 2033 suggests a robust expansion, supported by technological advancements and environmental policies.
Middle East and Africa Region
The Middle East and Africa region, although smaller in market size, exhibited the fastest growth rate. In 2024, the market value for this region was 109.90 million US dollars, accounting for 1.02% of the total global market share. The growth rate of 31.47% from 2020 to 2033 highlights the region’s potential for rapid expansion, driven by increasing awareness of environmental issues and the adoption of recycling technologies.
South America Region
South America had a market value of 140.10 million US dollars in 2024, representing 1.29% of the total global market share. The region’s market is influenced by the growing demand for electric vehicles and the need to manage electronic waste. The growth rate of 25.51% from 2020 to 2033 indicates a steady expansion, supported by regional initiatives to promote recycling and sustainability.
Table Global Lithium-ion Battery Recycling Market Size, Region Wise in 2024
Region | Revenue (M USD) | Market Share (%) |
|---|---|---|
North America | 567.27 | 5.23 |
Europe | 1,646.02 | 15.15 |
Asia-Pacific | 8,404.52 | 77.31 |
South America | 140.10 | 1.29 |
Middle East & Africa | 109.90 | 1.02 |
Total | 10,867.81 | 100.00 |
Figure Global Lithium-ion Battery Recycling Market Share, Region Wise in 2024
6 Global Lithium-ion Battery Recycling Market Top 3 Players
Company Introduction and Business Overview: GEM Co., Ltd., established in 2001 and headquartered in China, is a leading company in the field of resource recycling. The company is dedicated to developing advanced recycling technologies and expanding its waste treatment capabilities. GEM has established three core recycling clusters: waste batteries and rare metal waste, electronic waste, and scrapped cars. The company’s business is primarily focused in China, where it has a significant market presence.
Products Offered: GEM offers a comprehensive range of recycling services for lithium-ion batteries, including the recycling of LiCoO2, NMC, LiFePO4, and other types of batteries. The company has developed a nationwide 2+N mobile battery recycling system, with recycling centers in Jingmen, Hubei, and other key locations.
Revenue in 2021: In 2021, GEM Co., Ltd. reported a revenue of 1,909.07 million US dollars, with a gross profit of 486.91 million US dollars and a gross margin of 25.51%.
Contemporary Amperex Technology Co., Ltd. (CATL)
Company Introduction and Business Overview: CATL, established in 1999 and headquartered in China, is a global leader in the development and manufacturing of lithium-ion batteries. The company’s business covers R&D, manufacturing, and sales of battery systems for new energy vehicles and energy storage systems. CATL is committed to providing cutting-edge solutions for global new energy applications and has a significant market presence in China and internationally.
Products Offered: CATL offers a wide range of lithium-ion battery recycling services, focusing on the end-of-life management of batteries used in electric vehicles and energy storage systems. The company works with customers to build a closed loop of battery production, utilization, cascade utilization, and recycling, emphasizing environmental, economic, and social values.
Revenue in 2021: In 2021, CATL reported a revenue of 737.63 million US dollars, with a gross profit of 185.60 million US dollars and a gross margin of 25.16%.
Company Introduction and Business Overview: Umicore, established in 1989 and headquartered in Belgium, is a global materials technology and recycling group. The company focuses on reducing harmful emissions, powering future vehicles and technologies, and giving new life to used metals. Umicore has a significant presence in Europe and is known for its advanced recycling technologies and environmental commitment.
Products Offered: Umicore provides recycling services for Lithium-Ion (Li-ion), Lithium Polymer, and Nickel Metal Hydride (NiMH) batteries from various applications. The company recovers valuable metals from these batteries to convert them into active cathode materials for the production of new rechargeable batteries, promoting a circular economy.
Revenue in 2021: In 2021, Umicore reported a revenue of 558.41 million US dollars, with a gross profit of 149.05 million US dollars and a gross margin of 26.69%.
Table Global Lithium-ion Battery Recycling Revenue of Top3 Players in 2021
Company | Revenue (M USD) |
GEM Co., Ltd. | 1909.07 |
Contemporary Amperex Technology Co.Ltd. (CATL) | 737.63 |
Umicore | 558.41 |