NEW YORK, 7 August 2023: The electric vehicle battery recycling market is projected to expand by USD 1.86bn from 2022 to 2027, showcasing a notable CAGR of 38.68%, according to the latest research by Technavio. This surge is attributed to the increasing adoption of electric vehicles (EVs) and a growing focus on environmental sustainability.
Market Insights Overview
The electric vehicle battery recycling market encompasses key areas such as sizing, forecasts, analysis, and the competitive landscape. The market displays fragmentation, with vendors employing organic and inorganic growth strategies. Leaders in the process industry are pursuing horizontal integration with system integrators to enhance market presence and share. Discrete industry end-users build relationships with vendors based on past experiences, favoring global RPA vendors for quality, durability, reliability, and innovation. This competition is anticipated to intensify in the global RPA market during the forecast period.
Key Players in the Field
Several prominent players in the electric vehicle battery recycling landscape include:
- Accurec Recycling GmbH: Offers recycling solutions for NiCd, NiMH, and Lithium batteries.
- Aqua Metals Inc: Specializes in aqua refining, pyro, and standard hydro processes for battery recycling.
- Call2Recycle Inc: Focuses on lithium-ion battery recycling.
Market Segmentation: Insights and Outlook
The report comprehensively covers market segmentation based on source (production scrap and end of life), vehicle type (passenger cars and commercial vehicles), and geography (APAC, Europe, North A`merica, South America, and the Middle East and Africa).
The production scrap segment is projected to witness significant growth during the forecast period. Recycling production waste generated during various manufacturing phases, such as cell assembly and battery pack assembly, contributes to reduced waste, conservation of natural resources, and decreased environmental impact. These factors are set to drive market growth.
Regional Outlook: APAC Leading the Way
APAC is poised to lead the market growth, accounting for 47% during the forecast period. The region’s rising demand for electric mobility solutions is a primary driver. This necessitates efficient and sustainable battery recycling solutions to ensure the industry’s long-term viability. Additionally, environmental awareness, government initiatives, and regulations further stimulate market growth.
Market Dynamics: Key Drivers, Trends, and Challenges
Major Driver: The surge in electric vehicle adoption fuels market growth. With growing concerns about global warming and climate change, consumers are increasingly turning to electric vehicles to curb emissions. Electric vehicles offer energy security, better fuel economy, and reduced emissions, especially relevant due to volatile oil and gas prices.
Major Trend: The widening supply-demand gap for lithium is a significant trend. As demand for electric vehicle batteries rises, there is a corresponding shortage of lithium supply. This trend impacts industries like pharmaceuticals, construction, glass, and ceramics that rely on lithium.
Significant Challenge: Safety concerns related to storing and transporting spent batteries pose challenges. Managing the waste generated from battery recycling operations requires addressing logistic issues and solid waste disposal. This challenge necessitates designing effective disposal systems for lithium-ion batteries.
Technavio’s report highlights a thriving electric vehicle battery recycling market. Fueled by the adoption of electric vehicles, addressing the lithium supply-demand gap, and overcoming storage and transportation challenges, the market is poised for remarkable growth.